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NXPI (NXP Semiconductors NV) Degree of Operating Leverage : 1.75 (As of Mar. 2025)


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What is NXP Semiconductors NV Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. NXP Semiconductors NV's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NXPI's Degree of Operating Leverage is ranked worse than
59.54% of 996 companies
in the Semiconductors industry
Industry Median: 0.975 vs NXPI: 1.75

NXP Semiconductors NV Degree of Operating Leverage Historical Data

The historical data trend for NXP Semiconductors NV'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.

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NXP Semiconductors NV Degree of Operating Leverage Chart

NXP Semiconductors NV 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 15.10 21.16 2.51 - 1.55

NXP Semiconductors NV 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 2.11 2.53 1.22 1.55 1.75

Competitive Comparison of NXP Semiconductors NV's Degree of Operating Leverage

For the Semiconductors subindustry, NXP Semiconductors NV'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.


NXP Semiconductors NV's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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


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NXP Semiconductors NV Degree of Operating Leverage Calculation

NXP Semiconductors NV'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
=( 3343 (Mar. 2025) / 3827 (Mar. 2024) - 1 )/( 12323 (Mar. 2025) / 13281 (Mar. 2024) - 1 )
=-0.1265/-0.0721
=1.75***

* 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.


NXP Semiconductors NV  (NAS:NXPI) 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.


NXP Semiconductors NV Degree of Operating Leverage Related Terms

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


NXP Semiconductors NV Business Description

Address
60 High Tech Campus, Eindhoven, NB, NLD, 5656 AG
NXP Semiconductors is a leading supplier of high-performance mixed-signal products. The firm acquired Freescale Semiconductor in 2015 and now has significant market share in the automotive market, where it supplies microcontrollers and analog chips into automotive clusters, powertrains, infotainment systems, and radars. NXP Semiconductors also serves industrial and Internet of Things, mobile, and communications infrastructure.
Executives
Andrew Micallef officer: EVP Global Operations NXP SEMICONDUCTORS N.V., HIGH TECH CAMPUS 60, EINDHOVEN P7 5656AG
Jennifer Wuamett officer: EVP & General Counsel 6501 WILLIAM CANNON DRIVE WEST, AUSTIN TX 78735
Julie Southern director HIGH TECH CAMPUS 60, EINDHOVEN P7 5656AG
Kurt Sievers officer: President HIGH TECH CAMPUS 60, EINDHOVEN P7 5656 AG
Christopher L Jensen officer: EVP Human Resources HIGH TECH CAMPUS 60, EINDHOVEN P7 78735
Gregory L Summe director C/O GLEN CAPITAL PARTNERS LLC, 800 SOUTH STREET, SUITE 160, WALTHAM MA 02453
Martino Ronald officer: EVP Global Sales 6501 W WILLIAM CANNON DR, AUSTIN TX 78735
William Betz officer: EVP & CFO HIGH TECH CAMPUS 60, EINDHOVEN P7 5656AG
Moshe Gavrielov director 2041 LANDINGS DRIVE, MOUNTAIN VIEW CA 94043
Gu Chunyuan director 6501 WILLIAM CANNON DRIVE WEST, AUSTIN TX 78735
Josef Kaeser director HIGH TECH CAMPUS 60, EINDHOVEN P7 5656AG
Kenneth A Goldman director C/O YAHOO! INC., 701 FIRST AVENUE, SUNNYVALE CA 94089
Peter Kelly officer: EVP & CFO 1110 AMERICAN PARKWAY NE, ALLENTOWN PA 18109
Stephen Owen officer: EVP Sales & Marketing HIGH TECH CAMPUS 60, EINDHOVEN P7 5656AG
Annette K Clayton director 11384 BAYBERRY DRIVE, ROMEO MI 48065