GURUFOCUS.COM » STOCK LIST » Technology » Software » F5 Inc (LTS:0IL6) » Definitions » Degree of Operating Leverage

F5 (LTS:0IL6) Degree of Operating Leverage : 2.33 (As of Mar. 2025)


View and export this data going back to 2018. Start your Free Trial

What is F5 Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. F5's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.33. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for F5's Degree of Operating Leverage or its related term are showing as below:

LTS:0IL6's Degree of Operating Leverage is ranked worse than
69.73% of 2659 companies
in the Software industry
Industry Median: 0.78 vs LTS:0IL6: 2.33

F5 Degree of Operating Leverage Historical Data

The historical data trend for F5'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.

F5 Degree of Operating Leverage Chart

F5 Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.73 -0.14 1.26 7.05 229.11

F5 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 269.10 -34.62 229.11 5.41 2.33

Competitive Comparison of F5's Degree of Operating Leverage

For the Software - Infrastructure subindustry, F5'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.


F5's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, F5's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where F5's Degree of Operating Leverage falls into.


;
;

F5 Degree of Operating Leverage Calculation

F5'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
=( 729.508 (Mar. 2025) / 644.996 (Mar. 2024) - 1 )/( 2939.781 (Mar. 2025) / 2783.567 (Mar. 2024) - 1 )
=0.131/0.0561
=2.33***

* 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.


F5  (LTS:0IL6) 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.


F5 Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of F5's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


F5 Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » F5 Inc (LTS:0IL6) » Definitions » Degree of Operating Leverage
Traded in Other Exchanges
Address
801 5th Avenue, Seattle, WA, USA, 98104
F5 is a market leader in the application delivery controller market. The company sells products for security, application performance, and automation. Its three customer verticals are enterprises, service providers, and government entities. Revenue is evenly split between its services business and products business with revenue trending toward products due to software adoption. The Seattle-based firm was incorporated in 1996, and went public in 1999.

F5 Headlines

No Headlines