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ICHR (Ichor Holdings) Degree of Operating Leverage : -5.16 (As of Mar. 2025)


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What is Ichor Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ichor Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -5.16. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ICHR's Degree of Operating Leverage is ranked better than
84.64% of 996 companies
in the Semiconductors industry
Industry Median: 0.98 vs ICHR: -5.16

Ichor Holdings Degree of Operating Leverage Historical Data

The historical data trend for Ichor Holdings'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.

Ichor Holdings Degree of Operating Leverage Chart

Ichor Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.70 4.78 0.46 3.10 -5.32

Ichor Holdings 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 3.55 5.55 20.94 -5.32 -5.16

Competitive Comparison of Ichor Holdings's Degree of Operating Leverage

For the Semiconductor Equipment & Materials subindustry, Ichor Holdings'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.


Ichor Holdings's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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


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Ichor Holdings Degree of Operating Leverage Calculation

Ichor Holdings'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
=( -6.061 (Mar. 2025) / -19.689 (Mar. 2024) - 1 )/( 892.122 (Mar. 2025) / 786.633 (Mar. 2024) - 1 )
=-0.6922/0.1341
=-5.16***

* 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.


Ichor Holdings  (NAS:ICHR) 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.


Ichor Holdings Degree of Operating Leverage Related Terms

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


Ichor Holdings Business Description

Traded in Other Exchanges
Address
3185 Laurelview Court, Fremont, CA, USA, 94538
Ichor Holdings Ltd is engaged in the design, engineering, and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment. The product offerings include gas and chemical delivery subsystems, collectively known as fluid delivery subsystems, which are key elements of the process tools used in the manufacturing of semiconductor devices. The company also manufactures machined components, weldments, and proprietary products for use in fluid delivery systems. Geographically, the company operates in the United States, Singapore, Europe, and Others, of which a majority of the revenue is generated from Singapore.
Executives
Jeff Andreson officer: Chief Financial Officer 3560 BASSETT STREET, SANTA CLARA CA 95054
Thomas M Rohrs director, officer: Chief Executive Officer 2 RESULTS WAY, CUPERTINO CA 95014
Jorge Titinger director 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Barros Philip Ryan Sr. officer: Chief Technology Officer 3185 LAUREL VIEW CT., FREMONT CA 94538
Christopher Smith officer: Chief Commercial Officer 3560 BASSETT STREET, SANTA CLARA CA 95054
Greg Swyt officer: Chief Financial Officer C/O ONTO INNOVATION INC., 16 JONSPIN ROAD, WILMINGTON MA 01887
Marc Haugen director C/O CEPHEID, 904 CARIBBEAN DRIVE, SUNNYVALE CA 94089
Bruce Ragsdale officer: Chief Operating Officer 3185 LAURELVIEW CT, FREMONT CA 94538
Iain Mackenzie director C/O SMART GLOBAL HOLDINGS, INC., 39870 EUREKA DRIVE, NEWARK CA 94560
Paul Chhabra officer: Chief Operating Officer 9255 COVERDALE ROAD, FORT WAYNE IN 46809
Kevin M. Canty officer: Chief Operating Officer 3185 LAURELVIEW CT., FREMONT CA 94538
Yuval Wasserman director 1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
Sarah A O'dowd director 3185 LAURELVIEW COURT, FREMONT CA 94538
Wendy Arienzo director 5245 HELLYER AVE, SAN JOSE CA 95138
Larry J Sparks officer: Chief Financial Officer 3185 LAURELVIEW CT, FREMONT CA 94538