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NTIP (Network-1 Technologies) Degree of Operating Leverage : -0.46 (As of Mar. 2025)


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What is Network-1 Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Network-1 Technologies's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.46. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Network-1 Technologies's Degree of Operating Leverage or its related term are showing as below:

NTIP's Degree of Operating Leverage is ranked better than
70.8% of 1000 companies
in the Business Services industry
Industry Median: 0.985 vs NTIP: -0.46

Network-1 Technologies Degree of Operating Leverage Historical Data

The historical data trend for Network-1 Technologies'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.

Network-1 Technologies Degree of Operating Leverage Chart

Network-1 Technologies 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 0.06 -1.27 - - -0.64

Network-1 Technologies 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 -0.13 -0.23 -0.23 -0.64 -0.46

Competitive Comparison of Network-1 Technologies's Degree of Operating Leverage

For the Specialty Business Services subindustry, Network-1 Technologies'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.


Network-1 Technologies's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Network-1 Technologies's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Network-1 Technologies's Degree of Operating Leverage falls into.


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Network-1 Technologies Degree of Operating Leverage Calculation

Network-1 Technologies'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
=( -3.348 (Mar. 2025) / -2.377 (Mar. 2024) - 1 )/( 0.25 (Mar. 2025) / 2.064 (Mar. 2024) - 1 )
=0.4085/-0.8789
=-0.46***

* 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.


Network-1 Technologies  (AMEX:NTIP) 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.


Network-1 Technologies Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Network-1 Technologies's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Network-1 Technologies Business Description

Traded in Other Exchanges
Address
65 Locust Avenue, Third Floor, New Canaan, CT, USA, 06840
Network-1 Technologies Inc is involved in the business of the development, licensing, and protection of intellectual property assets. The company's current plan includes continuing to pursue licensing opportunities for its intellectual property assets.
Executives
Robert Michael Mahan officer: Chief Financial Officer 87 MADISON AVENUE, #433, PARK RIDGE NJ 07656
Steven D. Heinemann 10 percent owner C/O GOOSE HILL CAPITAL, 546 FIFTH AVENUE, 14TH FLOOR, NEW YORK NY 10036
Jonathan M Greene officer: Executive Vice President 23 TOPAZ LANE, TRUMBULL CT 06611
Niv Harizman director SAWGRASS CORPORATE INDUSTRIAL PARK, 14000 NW 4TH ST, SUNRISE FL 33325
Allison C Hoffman director 315 EAST 68TH STREET, NEW YORK NY 10065
Emanuel R Pearlman director 250 EAST 79TH STREET, NEW YORK NY 10075
Hound Partners Offshore Fund, Lp 10 percent owner C/O HOUND PARTNERS, LLC, 101 PARK AVENUE, 48TH FLOOR, NEW YORK NY 10178
Hound Partners, Llc 10 percent owner 101 PARK AVENUE, 48TH FLOOR, NEW YORK NY 10178
Hound Performance, Llc 10 percent owner 101 PARK AVENUE, 48TH FLOOR, NEW YORK NY 10178
Auerbach Jonathan A G 10 percent owner 215 E 73RD STREET, NEW YORK NY 10021
Laurent Ohana director 575 LEXINGTON AVENUE, SUITE 400, NEW YORK NY 10022
Woodland Services Corp 10 percent owner
Marilyn Rubenstein 10 percent owner
Jonathan Lieber 10 percent owner 80 CUTTERMILL ROAD STE 311, GREAT NECKK NY 11201
Barry Rubenstein 10 percent owner 68 WHEATLEY RD, BROOKVILLE NY 11545