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LASR (nLight) Degree of Operating Leverage : 2.71 (As of Mar. 2025)


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What is nLight Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. nLight's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.71. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LASR's Degree of Operating Leverage is ranked worse than
67.94% of 995 companies
in the Semiconductors industry
Industry Median: 0.98 vs LASR: 2.71

nLight Degree of Operating Leverage Historical Data

The historical data trend for nLight'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.

nLight Degree of Operating Leverage Chart

nLight Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only 4.30 2.04 -6.70 0.77 -6.18

nLight 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 -0.20 -0.16 -0.25 -6.18 2.71

Competitive Comparison of nLight's Degree of Operating Leverage

For the Semiconductors subindustry, nLight'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.


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

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

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


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nLight Degree of Operating Leverage Calculation

nLight'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
=( -56.237 (Mar. 2025) / -52.46 (Mar. 2024) - 1 )/( 205.689 (Mar. 2025) / 200.357 (Mar. 2024) - 1 )
=0.072/0.0266
=2.71***

* 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.


nLight  (NAS:LASR) 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.


nLight Degree of Operating Leverage Related Terms

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


nLight Business Description

Industry
Traded in Other Exchanges
N/A
Address
4637 North West 18th Avenue, Camas, WA, USA, 98607
nLight Inc is a United States-based company provider of power semiconductor and fiber lasers for aerospace and defense, industrial, and microfabrication applications. It designs, manufactures, and sells a range of power semiconductor lasers and fiber lasers that are typically integrated into laser systems. It operates in two segments: Laser Products, which includes semiconductor lasers, fiber lasers, and directed energy products; and Development segment includes revenue earned from research and development contracts. The majority of its revenue is generated from the Laser segment. The company's geographical segments include North America, Asia Pacific, and EMEA.
Executives
Scott H Keeney director, officer: President and CEO 5408 NE 88TH STREET, BUILDING E, VANCOUVER WA 98665
James Nias officer: Chief Accounting Officer 4637 NW 18TH AVENUE, CAMAS WA 98607
Joseph John Corso officer: Chief Financial Officer 4637 NW 18TH AVE, CAMAS WA 98607
Geoffrey Moore director C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Ran Bareket officer: CFO 1005 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
Camille Nichols director 5408 NE 88TH STREET, BUILDING E, VANCOUVER WA 98665
Robert Martinsen officer: Chief Technical Officer 5408 NE 88TH STREET, BUILDING E, VANCOUVER WA 98665
Sixth Mdv Partners, L.l.c. 10 percent owner 777 MARINERS ISLAND BLVD., STE. 550, SAN MATEO CA 94404
David D. Osborne director 5408 NE 88TH STREET, BUILDING E, VANCOUVER WA 98665
Oak X Affiliates Fund Lp 10 percent owner 901 MAIN AVENUE, NORWALK CT 06851
Bandel L Carano director, 10 percent owner 525 UNIVERSITY AVENUE, SUITE 1300, PALO ALTO CA 94301
Douglas C Carlisle director, 10 percent owner 3000 SAND HILL RD, BLDG 4 STE 100, MENLO PARK CA 94025
Mv Management Ix Llc 10 percent owner 2884 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Menlo Entrepreneurs Fund Ix A Lp 10 percent owner 2884 SAND HILL RD, SUITE 100, MENLO PARK CA 94025
William Gossman director 5408 NE 88TH STREET, BUILDING E, VANCOUVER WA 98665