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FKWL (Franklin Wireless) Degree of Operating Leverage : 0.70 (As of Mar. 2025)


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What is Franklin Wireless Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Franklin Wireless's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.70. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FKWL's Degree of Operating Leverage is ranked better than
54.66% of 2413 companies
in the Hardware industry
Industry Median: 1 vs FKWL: 0.70

Franklin Wireless Degree of Operating Leverage Historical Data

The historical data trend for Franklin Wireless'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.

Franklin Wireless Degree of Operating Leverage Chart

Franklin Wireless Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.22 1.54 1.39 -0.58 -4.76

Franklin Wireless 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 15.13 -4.76 -5.51 -4.37 0.70

Competitive Comparison of Franklin Wireless's Degree of Operating Leverage

For the Communication Equipment subindustry, Franklin Wireless'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.


Franklin Wireless's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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Franklin Wireless Degree of Operating Leverage Calculation

Franklin Wireless'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
=( -3.789 (Mar. 2025) / -3.572 (Mar. 2024) - 1 )/( 45.277 (Mar. 2025) / 41.684 (Mar. 2024) - 1 )
=0.0608/0.0862
=0.70***

* 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.


Franklin Wireless  (NAS:FKWL) 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.


Franklin Wireless Degree of Operating Leverage Related Terms

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Franklin Wireless Business Description

Traded in Other Exchanges
N/A
Address
3940 Ruffin Road, Suite C, San Diego, CA, USA, 92123
Franklin Wireless Corp is a provider of wireless solutions, including mobile hotspots, routers, and modems, as well as hardware and software products that support machine-to-machine (M2M) applications and the Internet of Things (IoT). Its M2M and IoT solutions include embedded modules, modems, and gateways built to deliver reliable always-on connectivity supporting a spectrum of applications. These products are designed to solve wireless connectivity challenges in a range of vertical markets, including video surveillance, digital signage, home security, oil and gas exploration, kiosks, fleet management, smart grid, vehicle diagnostics, and telematics.
Executives
Oc Kim director, 10 percent owner, officer: Chief Executive Officer 5440 MOREHOUSE DR., SUITE 1000, SAN DIEGO CA 92121
Kristina S Kim director 7612 SEATTLE DRIVE, LA MESA CA 91941
Joon Won Jyoung director C/O FRANKLIN WIRELESS CORP., 6205 LUSK BLVD., SAN DIEGO CA 92121
Yun J Lee officer: Senior Vice President 5440 MOREHOUSE DR., SUITE 1000, SAN DIEGO CA 92121
Heidy Kingwan Chow director 92 KESTREL, IRVINE CA 92618
Johnathan Wonjong Chee director 8951 N. MILWAUKEE AVE #202, NILES IL 60714
Richard T Walker officer: Chief Financial Officer 6205 LUSK BLVD, SAN DIEGO CA 92121
David S Oros other: No longer member of group 9777 PYRAMID COURT, SUITE 100, ENGLEWOOD CO 80112
Karen Singer other: member of 13(d) group 10%owner 212 VACCARO DRIVE, CRESSKILL NJ 07626
Miller Lloyd I Iii other: Member of 13(d) group 10%owner
Steven Sherman other: Member of 13(d) group 10%owner
Benjamin J Chung director 2218 AVONDALE DRIVE, FULLERTON CA 92833
Gary Wendel Nelson director 5440 MOREHOUSE DR., SUITE 1000, SAN DIEGO CA 92121
Jae Man Lee director, 10 percent owner 9823 PACIFIC HEIGHTS BLVD #J, SAN DIEGO CA 92121
David (kwangho) Kim director C/O WESTECH KOREA, INC., 548-9 GA JWA 3-DONG, SEO-GU, INCEHON M4 00000