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IMMR (Immersion) Degree of Operating Leverage : 0.29 (As of Jan. 2025)


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What is Immersion Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Immersion's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 0.29. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

IMMR's Degree of Operating Leverage is ranked better than
56.98% of 2671 companies
in the Software industry
Industry Median: 0.79 vs IMMR: 0.29

Immersion Degree of Operating Leverage Historical Data

The historical data trend for Immersion'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.

Immersion Degree of Operating Leverage Chart

Immersion Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.08 7.22 46.06 3.98 3.66

Immersion Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Oct24 Jan25
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 3.66 0.15 0.17 0.14 0.29

Competitive Comparison of Immersion's Degree of Operating Leverage

For the Software - Application subindustry, Immersion'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.


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

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

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


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Immersion Degree of Operating Leverage Calculation

Immersion's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 155.585 (Jan. 2025) / 13.955 (Dec. 2023) - 1 )/( 1234.282 (Jan. 2025) / 33.919 (Dec. 2023) - 1 )
=10.1491/35.3891
=0.29***

* 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.


Immersion  (NAS:IMMR) 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.


Immersion Degree of Operating Leverage Related Terms

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


Immersion Business Description

Industry
Traded in Other Exchanges
Address
2999 N.E. 191st Street, Suite 610, Aventura, FL, USA, 33180
Immersion Corp is focused on the creation, design, development, and licensing of haptic technologies that allow people to use its sense of touch more fully as it involves engaging with products and experience the digital world. The company's software focuses on applications in mobile devices, wearables, consumer, and gaming devices markets. It generates revenue from royalty and license fees, and development contract and service fees. Geographically, the company generates a majority of its revenue from Japan, followed by Korea, Germany, United States of America and other countries.
Executives
Eric Singer 10 percent owner 323 SUNNY ISLES BLVD., SUITE 700, SUNNY ISLES BEACH FL 33160
William C Martin officer: Chief Strategy Officer C/O RAGING CAPITAL MANAGEMENT, LLC, TEN PRINCETON AVENUE, PO BOX 228, ROCKY HILL NJ 08553
Childress Frederick Wasch director 330 TOWNSEND STREET, SUITE 234, SAN FRANCISCO CA 94107
J Michael Dodson officer: Chief Financial Officer 1220 N. SIMON CIRCLE, ANAHEIM CA 92806
Elias Nader director 1778 MCCARTHY BLVD., C/O SIGMA DESIGNS, INC., MILPITAS CA 95035
Aaron Akerman officer: Chief Financial Officer C/O IMMERSION CORPORATION, 50 RIO ROBLES, SAN JOSE CA 95134
Emily Hoffman director 2999 N.E. 191ST STREET, SUITE 610, AVENTURA FL 33180
Francis Jose officer: General Counsel 385 RIVER OAKS PARKWAY, APT # 2106, SAN JOSE CA 95134
Sumit Agarwal director C/O IMMERSION CORPORATION, 50 RIO ROBLES, SAN JOSE CA 95134
Mary Dotz director 280 N BERNARDO AVENUE, MOUNTAIN VIEW CA 94043
Jared Smith officer: Interim CEO/VP Worldwide Sales C/O IMMERSION CORPORATION, 50 RIO ROBLES, SAN JOSE CA 95134
Viex Special Opportunities Fund Ii, Lp 10 percent owner C/O VIEX CAPITAL ADVISORS, LLC, 825 THIRD AVENUE, 33RD FLOOR, NEW YORK NY 10022
Michael Rudolf Okada officer: General Counsel C/O IMMERSION CORPORATION, 50 RIO ROBLES, SAN JOSE CA 95134
Viex Opportunities Fund, Lp Series One 10 percent owner C/O VIEX CAPITAL ADVISORS, LLC, 825 THIRD AVENUE, 33RD FLOOR, NEW YORK NY 10022
Sharon E Holt director C/O IMMERSION CORPORATION, 50 RIO ROBLES, SAN JOSE CA 95134

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