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LTRX (Lantronix) Degree of Operating Leverage : -35.40 (As of Mar. 2025)


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What is Lantronix Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lantronix's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -35.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LTRX's Degree of Operating Leverage is ranked better than
95.28% of 2414 companies
in the Hardware industry
Industry Median: 1 vs LTRX: -35.40

Lantronix Degree of Operating Leverage Historical Data

The historical data trend for Lantronix'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.

Lantronix Degree of Operating Leverage Chart

Lantronix 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 -9.68 2.92 0.76 15.14 -2.60

Lantronix 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 -1.87 -2.60 -2.27 -3.24 -35.40

Competitive Comparison of Lantronix's Degree of Operating Leverage

For the Communication Equipment subindustry, Lantronix'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.


Lantronix's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


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Lantronix Degree of Operating Leverage Calculation

Lantronix'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
=( -7.341 (Mar. 2025) / -4.242 (Mar. 2024) - 1 )/( 143.159 (Mar. 2025) / 146.176 (Mar. 2024) - 1 )
=0.7306/-0.0206
=-35.40***

* 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.


Lantronix  (NAS:LTRX) 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.


Lantronix Degree of Operating Leverage Related Terms

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


Lantronix Business Description

Industry
Traded in Other Exchanges
N/A
Address
48 Discovery, Suite 250, Irvine, CA, USA, 92618
Lantronix Inc is a networking company. It provides secure data access and management solutions for the Internet of Things (IoT) and information technology assets. It organizes its products and solutions into three product lines: Embedded IoT Solutions, IoT Systems Solutions, and Software and Services. The IoT System Solutions segment is the key revenue driver for the company. The company serves a diverse range of markets including healthcare, industrial, security, energy, transportation, and government networking. Its primary geographic markets are the Americas, Europe, the Middle East and Africa, and Asia Pacific Japan. The Americas contribute the vast majority of total revenue.
Executives
Hoshi Printer director C/O LANTRONIX, INC., 7535 IRVINE CENTER DRIVE, SUITE 100, IRVINE CA 92518
Philip G Brace director LSI LOGIC CORP, 1621 BARBER LANE, MILPITAS CA 95035
Bernhard Bruscha director, 10 percent owner LANTRONIX INC, 7535 IRVINE CENTER DRIVE, SUITE 100, IRVINE CA 92618
Jason Cohenour director 47669 FREMONT BLVD, FREMONT CA 94538
Eric Bass officer: VP of Engineering 48 DISCOVERY, SUITE 250, IRVINE CA 92618
Paul F Folino director ONE ENTERPRISE, ALISO VIEJO CA 92656
Phu Hoang director 48 DISCOVERY, SUITE 250, IRVINE CA 92618
Jeremy Whitaker officer: Chief Financial Officer and Co 15353 BARRANCA PARKWAY, IRVINE CA 92618
Paul H Pickle director, officer: President & CEO 200 FLYNN ROAD, CAMARILLO CA 93012
Fathi Hakam officer: Vice President of Engineering 7535 IRVINE CENTER DRIVE, SUITE 100, IRVINE CA 92618
Roger Holliday officer: VP of Worldwide Sales 7535 IRVINE CENTER DRIVE, SUITE 100, IRVINE CA 92618
Heidi Nguyen director C/O LANTRONIX, 7535 IRVINE CENTER DRIVE, SUITE 100, IRVINE CA IRVINE
Hale Martin M Jr director, 10 percent owner
Margaret A Evashenk director EMULEX CORPORATION, 3333 SUSAN STREET, COSTA MESA CA 92626
Kevin Yoder officer: VP of Worldwide Sales 7535 IRVINE CENTER DRIVE, SUITE 100, IRVINE CA 92618