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IDCC (InterDigital) Degree of Operating Leverage : 2.80 (As of Mar. 2025)


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What is InterDigital Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. InterDigital's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.80. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

IDCC's Degree of Operating Leverage is ranked worse than
72.72% of 2665 companies
in the Software industry
Industry Median: 0.79 vs IDCC: 2.80

InterDigital Degree of Operating Leverage Historical Data

The historical data trend for InterDigital'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.

InterDigital Degree of Operating Leverage Chart

InterDigital 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 0.62 0.80 10.20 4.49 1.21

InterDigital 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 0.41 1.23 0.76 1.21 2.80

Competitive Comparison of InterDigital's Degree of Operating Leverage

For the Software - Application subindustry, InterDigital'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.


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

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

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


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InterDigital Degree of Operating Leverage Calculation

InterDigital'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
=( 503.942 (Mar. 2025) / 259.96 (Mar. 2024) - 1 )/( 815.481 (Mar. 2025) / 610.757 (Mar. 2024) - 1 )
=0.9385/0.3352
=2.80***

* 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.


InterDigital  (NAS:IDCC) 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.


InterDigital Degree of Operating Leverage Related Terms

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


InterDigital Business Description

Industry
Traded in Other Exchanges
Address
200 Bellevue Parkway, Suite 300, Wilmington, DE, USA, 19809-3727
InterDigital Inc is a research and development company focused on wireless, video, Artificial Intelligence, and related technologies. It designs and develops technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. The majority of revenue is generated from fixed-fee patent license agreements, with a smaller portion coming from variable royalty agreements. Geographically it operates in the United States, China, South Korea, Japan, Taiwan, and Europe, out of which the majority is from China.
Executives
Rajesh Pankaj officer: Chief Technology Officer 200 BELLEVUE PARKWAY, SUITE 300, WILMINGTON DE 19809
Eeva K. Hakoranta officer: Chief Licensing Officer 200 BELLEVUE PARKWAY, SUITE 300, WILMINGTON DE 19809
Joshua D. Schmidt officer: CLO & Corp Sec 200 BELLEVUE PARKWAY, SUITE 300, WILMINGTON DE 19809
Jean F Rankin director 1110 AMERICAN PARKWAY NE, ALLENTOWN PA 18109
Richard Brezski officer: Chief Accounting Officer 781 THIRD AVENUE, KING OF PRUSSIA PA 19406-1409
Lawrence Liren Chen director, officer: President and CEO 200 BELLEVUE PARKWAY, SUITE 300, WILMINGTON DE 19809
Stewart D Hutcheson director 5887 COPLEY DRIVE, SAN DIEGO CA 92111
John A Kritzmacher director C/O GLOBAL CROSSING LIMITED, 200 PARK AVENUE, SUITE 300, FLORHAM PARK NJ 07932
Derek K Aberle director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Markley John D. Jr. director COLUMBIA CAPITAL, 201 NORTH UNION STREET, SUITE VA 22314
Samir Armaly director C/O XPERI HOLDING CORPORATION, 3025 ORCHARD PARKWAY, SAN JOSE CA 95134
Pierre-yves Lesaicherre director C/O INTERDIGITAL, INC., 200 BELLEVUE PKWY, STE 300, WILMINGTON DE 19809
Eric Cohen officer: Chief Strategy& Growth Officer 5220 LAS VIRGENES ROAD, CALABASAS CA 91302
Henry Tirri officer: Chief Technology Officer 400 ATLANTIC STREET, SUITE 1500, STAMFORD CT 06901
Joan H Gillman director C/O AIRGAIN, INC., 3611 VALLEY CENTRE DRIVE, SUITE 150, SAN DIEGO CA 92130