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MRVL (Marvell Technology) Degree of Operating Leverage : -2.07 (As of Apr. 2025)


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What is Marvell Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Marvell Technology's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was -2.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MRVL's Degree of Operating Leverage is ranked better than
76.71% of 996 companies
in the Semiconductors industry
Industry Median: 0.975 vs MRVL: -2.07

Marvell Technology Degree of Operating Leverage Historical Data

The historical data trend for Marvell Technology'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.

Marvell Technology Degree of Operating Leverage Chart

Marvell Technology Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.87 0.72 -5.34 45.12 6.12

Marvell Technology Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 11,157.19 -12.07 -45.70 6.12 -2.07

Competitive Comparison of Marvell Technology's Degree of Operating Leverage

For the Semiconductors subindustry, Marvell Technology'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.


Marvell Technology's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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


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Marvell Technology Degree of Operating Leverage Calculation

Marvell Technology's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -285.2 (Apr. 2025) / -516.4 (Apr. 2024) - 1 )/( 6501.7 (Apr. 2025) / 5346.9 (Apr. 2024) - 1 )
=-0.4477/0.216
=-2.07***

* 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.


Marvell Technology  (NAS:MRVL) 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.


Marvell Technology Degree of Operating Leverage Related Terms

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


Marvell Technology Business Description

Address
1000 N. West Street, Suite 1200, Wilmington, DE, USA, 19801
Marvell Technology is a fabless chip designer focused on wired networking, where it has the second-highest market share. Marvell serves the data center, carrier, enterprise, automotive, and consumer end markets with processors, optical and copper transceivers, switches, and storage controllers.
Executives
Willem A Meintjes officer: SVP, Chief Accounting Officer 5488 MARVELL LANE, SANTA CLARA CA 95054
Panteha Dixon officer: Chief Accounting Officer 5488 MARVELL LANE, SANTA CLARA CA 95054
Chris Koopmans officer: EVP, Chief Operations Officer 5488 MARVELL LANE, SANTA CLARA CA 94061
Brad W Buss director 198 CHAMPION COURT, SAN JOSE CA 95134
Michael G Strachan director LSI CORPORATION, 1621 BARBER LANE, MILPITAS CA 95035
Tudor Brown director C/O TESSERA TECHNOLOGIES, INC., 3025 ORCHARD PARKWAY, SAN JOSE CA 95134
Muhammad Raghib Hussain officer: President, Products & Tech 5488 MARVELL LANE, SANTA CLARA CA 95054
Matthew J Murphy director, officer: CEO and President MARVELL SEMICONDUCTOR, INC., 5488 MARVELL LANE, SANTA CLARA CA 95054
Ford Tamer director 3945 FREEDOM CIRCLE SUITE 1100, SANTA CLARA CA 95054
Mitchell Gaynor officer: EVP, CALO MARVELL SEMICONDUCTOR, INC., 5488 MARVELL LANE, SANTA CLARA CA 95054
Loi Nguyen officer: Executive Vice President 1000 N. WEST STREET, SUITE 1200, WILMINGTON DE 19801
Dan Christman officer: EVP, Storage Business Group 5488 MARVELL LANE, SANTA CLARA CA 95054
Sandeep Bharathi officer: Chief Development Officer 5488 MARVELL LANE, SANTA CLARA CA 95054
Jarnac Dean E Jr. officer: EVP Worldwide Sales 5488 MARVELL LANE, SANTA CLARA CA 95054
Nariman Yousefi officer: Executive Vice President 5300 CALIFORNIA AVENUE, IRVINE CA 92617