GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » GSI Technology Inc (NAS:GSIT) » Definitions » Degree of Operating Leverage

GSIT (GSI Technology) Degree of Operating Leverage : 0.46 (As of Mar. 2025)


View and export this data going back to 2007. Start your Free Trial

What is GSI Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. GSI Technology's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.46. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

GSIT's Degree of Operating Leverage is ranked better than
56.22% of 996 companies
in the Semiconductors industry
Industry Median: 0.98 vs GSIT: 0.46

GSI Technology Degree of Operating Leverage Historical Data

The historical data trend for GSI Technology'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.

GSI Technology Degree of Operating Leverage Chart

GSI Technology Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.69 -1.13 0.30 -1.10 -

GSI Technology 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 -1.10 -0.83 -1.34 0.46 -

Competitive Comparison of GSI Technology's Degree of Operating Leverage

For the Semiconductors subindustry, GSI Technology'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.


GSI Technology's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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


;
;

GSI Technology Degree of Operating Leverage Calculation

GSI Technology'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
=( -16.628 (Mar. 2025) / -20.431 (Mar. 2024) - 1 )/( 20.518 (Mar. 2025) / 21.765 (Mar. 2024) - 1 )
=-0.1861/-0.0573
=3.25***

* 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.


GSI Technology  (NAS:GSIT) 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.


GSI Technology Degree of Operating Leverage Related Terms

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


GSI Technology Business Description

Traded in Other Exchanges
N/A
Address
1213 Elko Drive, Sunnyvale, CA, USA, 94089
GSI Technology Inc is a provider of semiconductor memory solutions. The company develops and markets high-performance memory products, including Very Fast static random access memory, or SRAM, that are incorporated in high-performance networking and telecommunications equipment, such as routers, switches, wide area network infrastructure equipment, wireless base stations, and network access equipment. It sells these products to original equipment manufacturers and customers including Nokia. In addition, it serves the ongoing needs of the military, aerospace, industrial, test and measurement equipment, and automotive and medical markets for high-performance SRAMs. It operates geographically in China, Singapore, the Netherlands, Germany, Rest of the world, and the United States.
Executives
Barbara H Nelson director C/O QUANTUM CORP, 501 SYCAORE DR, MILPITAS CA 95035
Robert Yau director, officer: VP, Engin., Sect. & Director GSI TECHNOLOGY, INC., 2360 OWEN STREET, SANTA CLARA CA 95054
Avidan Akerib officer: VP of Associative Computing C/O GSI TECHNOLOGY, INC., 1213 ELKO DRIVE, SUNNYVALE CA 94089
Elizabeth Cholawsky director 1636 LA VISTA DEL OCEANO, SANTA BARBARA CA 93109
Ruey-lin Lu director EMPIA TECHNOLOGY, 2600 AUGUSTINE DRIVE, SANTA CLARA CA 95054
Douglas Schirle officer: CFO GSI TECHNOLOGY, INC., 1213 ELKO DRIVE, SUNNYVALE CA 94089
Didier Lasserre officer: VP, Sales GSI TECHNOLOGY, INC., 2360 OWEN STREET, SANTA CLARA CA 95054
Hong-po Hsieh director 20 PARK AVE. II, HSINCHU SCIENCE PARK, HSINCHU F5 308
Kim Le director 1608 PALA RANCH CIRCLE, SAN JOSE CA 95133
Jack A. Bradley director C/O GSI TECHNOLOGY, INC., 1213 ELKO DRIVE, SUNNYVALE CA 94089
Arthur O Whipple director 870 WEST MAUDE AVE, SUNNYVALE CA 94085
Ping Tak Wu officer: VP, U.S. Operations GSI TECHNOLOGY, INC., 2360 OWEN STREET, SANTA CLARA CA 95054
Bor-tay Wu officer: VP, Taiwan Operations GSI TECHNOLOGY, INC., 1213 ELKO DRIVE, SANTA CLARA CA 94089
Lee-lean Shu director, 10 percent owner, officer: Pres., CEO and Chairman GSI TECHNOLOGY, INC., 1213 ELKO DRIVE, SANTA CLARA CA 94089
E Thomas Hart director 1277 ORLEANS DRIVE, SUNNYVALE CA 94089-1138