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FALC (FalconStor Software) Degree of Operating Leverage : -30.60 (As of Sep. 2024)


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What is FalconStor Software Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. FalconStor Software's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -30.60. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for FalconStor Software's Degree of Operating Leverage or its related term are showing as below:

FALC's Degree of Operating Leverage is ranked better than
94.87% of 2668 companies
in the Software industry
Industry Median: 0.78 vs FALC: -30.60

FalconStor Software Degree of Operating Leverage Historical Data

The historical data trend for FalconStor Software's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

FalconStor Software Degree of Operating Leverage Chart

FalconStor Software Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -178.19 35.16 6.57 7.54 -13.85

FalconStor Software Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Jun24 Sep24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.27 24.88 -13.85 102.46 -30.60

Competitive Comparison of FalconStor Software's Degree of Operating Leverage

For the Software - Application subindustry, FalconStor Software's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


FalconStor Software's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, FalconStor Software's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where FalconStor Software's Degree of Operating Leverage falls into.


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FalconStor Software Degree of Operating Leverage Calculation

FalconStor Software's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1.704 (Sep. 2024) / 0.307 (Sep. 2023) - 1 )/( 8.936 (Sep. 2024) / 10.497 (Sep. 2023) - 1 )
=4.5505/-0.1487
=-30.60***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


FalconStor Software  (OTCPK:FALC) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


FalconStor Software Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of FalconStor Software's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


FalconStor Software Business Description

Traded in Other Exchanges
N/A
Address
501 Congress Avenue, Suite 150, Austin, TX, USA, 78701
FalconStor Software Inc operates in the trusted data protection software industry, modernizing disaster recovery and backup operations for the hybrid cloud environment. The company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing storage costs and long-term retention needs. Its products are StorSafe, StorGuard, and StorSight which deliver data protection, cloud migration, disaster recovery, ransomware recovery, and needs across multi-OS, multi-storage, and on-premises to cloud/hybrid cloud environments. The company's geographical markets include the Americas, which generate the highest revenue, Asia Pacific, Europe, the Middle East, Africa, and others.
Executives
Robert Todd Brooks officer: Chief Executive Officer C/O NOVATION COMPANIES, INC., 2 HUNTINGTON QUADRANGLE, SUITE 2S01, MELVILLE NY 11747
Vincent Sita officer: Chief Financial Officer C/O FALCONSTOR SOFTWARE, INC., 701 BRAZOS STREET, SUITE 400, AUSTIN TX 78701
Michael P Kelly director
Brad Wolfe officer: Chief Financial Officer C/O FALCONSTOR SOFTWARE, INC., 701 BRAZOS STREET, SUITE 400, AUSTIN TX 78701
Hcp-fva, Llc director, 10 percent owner 17 STATE STREET, SUITE 3230, NEW YORK NY 10004
Esw Capital, Llc 10 percent owner 401 CONGRESS AVENUE, SUITE 2650, AUSTIN TX 78701
Joseph Liemandt 10 percent owner 5001 PLAZA ON THE LAKE, AUSTIN TX 78746
Patrick Mcclain officer: EVP, CFO & Treasurer C/O FALCONSTOR SOFTWARE, INC., 2 HUNTINGTON QUADRANGLE, SUITE 2S01, MELVILLE NY 11747
Todd Oseth officer: CEO & President C/O MCDATA CORPORATION, 380 INTERLOCKEN CRESCENT, BROOMFIELD CO 80021
William D Miller director
Barry Rudolph director 1351 S SUNSET STREET, LONGMONT CO 80501
Daniel Murale officer: VP of Finance & Interim CFO C/O FALCONSTOR SOFTWARE, INC., 2 HUNTINGTON QUADRANGLE, SUITE 2S01, MELVILLE NY 11747
Gary Quinn officer: COO and EVP C/O COMPUTER ASSOCIATES INTER INC, ONE COMPUTER ASSOC PLAZA, ISLANDIA NY 11749
Alan Komet officer: EVP Worldwide Field Operations 2 HUNTINGTON QUADRANGLE, MELVILLE NY 11747
Hale Martin M Jr director, 10 percent owner