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KLA (KLAC) Degree of Operating Leverage : 1.85 (As of Mar. 2025)


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What is KLA Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. KLA's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

KLAC's Degree of Operating Leverage is ranked worse than
60.64% of 996 companies
in the Semiconductors industry
Industry Median: 0.975 vs KLAC: 1.85

KLA Degree of Operating Leverage Historical Data

The historical data trend for KLA'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.

KLA Degree of Operating Leverage Chart

KLA 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 0.15 3.68 1.36 0.86 2.20

KLA 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 2.22 2.20 -3.92 1.45 1.85

Competitive Comparison of KLA's Degree of Operating Leverage

For the Semiconductor Equipment & Materials subindustry, KLA'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.


KLA's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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


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KLA Degree of Operating Leverage Calculation

KLA'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
=( 4572.569 (Mar. 2025) / 3322.403 (Mar. 2024) - 1 )/( 11550.156 (Mar. 2025) / 9598.649 (Mar. 2024) - 1 )
=0.3763/0.2033
=1.85***

* 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.


KLA  (NAS:KLAC) 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.


KLA Degree of Operating Leverage Related Terms

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


KLA Business Description

Industry
Address
One Technology Drive, Milpitas, CA, USA, 95035
KLA is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segment of semiconductor process control, wherein machines inspect semiconductor wafers during research and development and manufacturing for defects and verify precise measurements. In this section of the market, KLA holds a majority share. It also has a small exposure to the etch and deposition segments of the WFE market. It counts as top customers the largest chipmakers in the world, including TSMC and Samsung.
Executives
Bren D. Higgins officer: EVP & Chief Financial Officer ONE TECHNOLOGY DRIVE, MILPITAS CA 95035
Richard P Wallace officer: Executive Vice President KLA TENCOR, 160 RIO ROBLES, SAN JOSE CA 95134
Ahmad A. Khan officer: President, Semi Proc. Control ONE TECHNOLOGY DRIVE, MILPITAS CA 95035
Brian Lorig officer: Executive Vice President ONE TECHNOLOGY DRIVE, MILPITAS X1 95035
Virendra A Kirloskar officer: SVP & Chief Accounting Officer 160 RIO ROBLES, SAN JOSE CA 95134
Mary Beth Wilkinson officer: EVP, CLO and Secretary 2350 GREEN ROAD, SUITE 100, ANN ARBOR MI 48105
Oreste Donzella officer: Executive Vice President ONE TECHNOLOGY DRIVE, MILPITAS CA 95035
Victor Peng director MIPS TECHNOLOGIES INC, 1225 CHARLESTON ROAD, MOUNTAIN VIEW CA 94043
Kevin Kennedy director
Marie Myers director 3000 HANOVER STREET, PALO ALTO CA 94304
Gary B Moore director 170 WEST TASMAN DRIVE, SAN JOSE CA 95134
Emiko Higashi director C/O GILO VENTURES, 175 ALMENDRAL AVENUE, ATHERTON CA 94027
Michael R. Mcmullen director 5301 STEVENS CREEK BLVD., MS 1A-LC, SANTA CLARA CA 95051
Robert A. Rango director 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Jeneanne Michelle Hanley director 21557 TELEGRAPH ROAD, SOUTHFIELD MI 48034