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NEON (Neonode) Degree of Operating Leverage : -0.47 (As of Mar. 2025)


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What is Neonode Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Neonode's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.47. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NEON's Degree of Operating Leverage is ranked better than
65.15% of 2413 companies
in the Hardware industry
Industry Median: 1 vs NEON: -0.47

Neonode Degree of Operating Leverage Historical Data

The historical data trend for Neonode'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.

Neonode Degree of Operating Leverage Chart

Neonode Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.82 -5.94 9.01 -0.63 -0.82

Neonode 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 -0.56 -0.79 -0.68 -0.82 -0.47

Competitive Comparison of Neonode's Degree of Operating Leverage

For the Electronic Components subindustry, Neonode'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.


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

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

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


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Neonode Degree of Operating Leverage Calculation

Neonode'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
=( -6.701 (Mar. 2025) / -6.574 (Mar. 2024) - 1 )/( 3.43 (Mar. 2025) / 3.576 (Mar. 2024) - 1 )
=0.0193/-0.0408
=-0.47***

* 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.


Neonode  (NAS:NEON) 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.


Neonode Degree of Operating Leverage Related Terms

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


Neonode Business Description

Industry
Traded in Other Exchanges
N/A
Address
Karlavagen 100, Stockholm, SWE, 115 26
Neonode Inc provides optical sensing solutions for contactless touch, and gesture sensing and also provides software solutions for machine perception that feature machine learning algorithms to detect and track persons and objects in video streams from cameras and other types of imagers. It markets and sells its solutions to customers in many different markets and segments including, but not limited to, office equipment, automotive, industrial automation, medical, military, and avionics. The company geographically operates in the United States, Japan, South Korea, Germany, Sweden, China, and other regions. A majority of its revenue is generated from Japan.
Executives
Cecilia Edstrom director KARLAVAGEN 100, STOCKHOLM V7 115 26
Fredrik Nihlen officer: Chief Financial Officer C/O NEONODE, INC.,. 100 KARLAVAGEN, STOCKHOLM V7 115 26
Urban Forssell officer: Chief Executive Officer C/O NEONODE, STORGATAN 23C, STOCKHOLM V7 11455
Mattias Bergman director C/O NEONODE, INC., STORGATAN 23C, STOCKHOLM V7 114 55
Ek Maria Anne-lee Charlotte officer: Chief Financial Officer C/O NEONODE, INC., STORGATAN 23C, STOCKHOLM V7 114 55
Ulf Rosberg director FAFNERVAEGEN 2, DJURSHOLM V7 18266
Hakan Persson officer: Chief Executive Officer C/O NEONODE INC., STORGATAN 23C, STOCKHOLM V7 114 55
Andreas Bunge director DRAGARSTIGEN 3, SALTSJOBADEN V7 133 36
Peter Lindell 10 percent owner LILLA ERSTAGATAN 6, STOCKHOLM V7 116 28
Lars, Goran Lindqvist director ZUGERSTRASSE 20, UNTERAEGERI V8 6314
Asa Hedin director MORABERGSVAGEN 27, SALTSJOBADEN V7 133 33
Per Eriksson director VILDVINSVAGEN 5, SALTSJOBADEN V7 S-133 36
Bjorn Thomas Eriksson officer: Vice President STORANGSSTIGEN 15 C, STOCKSUND V7 18274
Mats Dahlin director LORETOHOHE 1, ZUG V8 6300
Bystedt Per Ivar Gosta director DJURGARDSVAGEN 144, STOCKHOLM V7 SE 115 21