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FICO (Fair Isaac) Degree of Operating Leverage : 1.14 (As of Mar. 2025)


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What is Fair Isaac Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Fair Isaac's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.14. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FICO's Degree of Operating Leverage is ranked worse than
57.2% of 2668 companies
in the Software industry
Industry Median: 0.78 vs FICO: 1.14

Fair Isaac Degree of Operating Leverage Historical Data

The historical data trend for Fair Isaac'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.

Fair Isaac Degree of Operating Leverage Chart

Fair Isaac Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.46 42.15 1.14 2.04 1.13

Fair Isaac Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 1.70 1.24 1.13 1.14 1.14

Competitive Comparison of Fair Isaac's Degree of Operating Leverage

For the Software - Application subindustry, Fair Isaac'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.


Fair Isaac's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Fair Isaac Degree of Operating Leverage Calculation

Fair Isaac's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 818.095 (Mar. 2025) / 700.68 (Mar. 2024) - 1 )/( 1840.361 (Mar. 2025) / 1604.289 (Mar. 2024) - 1 )
=0.1676/0.1472
=1.14***

* 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.


Fair Isaac  (NYSE:FICO) 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.


Fair Isaac Degree of Operating Leverage Related Terms

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


Fair Isaac Business Description

Industry
Address
5 West Mendenhall, Suite 105, Bozeman, MT, USA, 59715
Founded in 1956, Fair Isaac Corporation is a leading applied analytics company. Fair Isaac is primarily known for its FICO credit scores, which is a widely used industry benchmark to determine the creditworthiness of an individual consumer. The firm's US-centric credit scores business accounts for most of the firm's profits and consists of business-to-business and business-to-consumer services. In addition to scores, Fair Isaac also sells software primarily to financial institutions for areas such as analytics, decision-making, customer workflows, and fraud.
Executives
William J Lansing director NET PERCEPTIONS, INC, 7700 FRANCE AVENUE SOUTH, EDINA MN 55435
Marc F Mcmorris director 181 METRO DRIVE, SAN JOSE CA 95110
Thomas A. Bowers officer: Executive Vice President 181 METRO DR., #600, SAN JOSE CA 95110
Steven P. Weber officer: Interim Chief Financial Ofc. 5 WEST MENDENHALL, SUITE 105, BOZEMAN MT 59715
James M Wehmann officer: Executive Vice President 181 METRO DRIVE, SAN JOSE CA 95110
Mark R Scadina officer: V.P., General Counsel & Sec. 181 METRO DRIVE, SAN JOSE CA 95110
Henry Tayloe Stansbury director C/O COUPA SOFTWARE INC., 1855 S. GRANT STREET, SAN MATEO CA 94402
Braden R Kelly director 181 METRO DRIVE, SAN JOSE CA 95110
David A Rey director 181 METRO DRIVE, SAN JOSE CA 95110
Joanna Rees director LEAPFROG ENTERPRISES, INC., 6401 HOLLIS STREET SUITE 100, EMERYVILLE CA 94608
James Kirsner director 5858 HORTON STREET, SUITE 350, EMERYVILLE CA 94608
Richard Deal officer: Vice President 181 METRO DRIVE, SAN JOSE CA 95110
Eva Manolis director C/O SHUTTERFLY, INC., 2800 BRIDGE PARKWAY, REDWOOD CITY CA 94065
Michael S Leonard officer: CAO and Vice President 181 METRO DRIVE, SAN JOSE CA 95110
Nikhil Behl officer: Executive Vice President 601 108TH AVENUE NE, SUITE 1200, BELLEVUE WA 98004