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PDFS (PDF Solutions) Degree of Operating Leverage : -15.58 (As of Mar. 2025)


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What is PDF Solutions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. PDF Solutions's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -15.58. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PDFS's Degree of Operating Leverage is ranked better than
90.42% of 2671 companies
in the Software industry
Industry Median: 0.79 vs PDFS: -15.58

PDF Solutions Degree of Operating Leverage Historical Data

The historical data trend for PDF Solutions'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.

PDF Solutions Degree of Operating Leverage Chart

PDF Solutions 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 42.61 -0.22 -2.57 -7.97 -223.84

PDF Solutions 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 -18.40 -65.96 -12.41 -223.84 -15.58

Competitive Comparison of PDF Solutions's Degree of Operating Leverage

For the Software - Application subindustry, PDF Solutions'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.


PDF Solutions's Degree of Operating Leverage Distribution in the Software Industry

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

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


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PDF Solutions Degree of Operating Leverage Calculation

PDF Solutions'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
=( 0.21 (Mar. 2025) / -0.253 (Mar. 2024) - 1 )/( 185.933 (Mar. 2025) / 166.386 (Mar. 2024) - 1 )
=-1.83/0.1175
=-15.58***

* 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.


PDF Solutions  (NAS:PDFS) 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.


PDF Solutions Degree of Operating Leverage Related Terms

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


PDF Solutions Business Description

Industry
Traded in Other Exchanges
Address
2858 De La Cruz Boulevard, Santa Clara, CA, USA, 95050
PDF Solutions Inc offers products and services designed to empower engineers and data scientists across the semiconductor ecosystem to improve the yield, quality, and profitability of their products. The solutions combine proprietary software, physical intellectual property (or IP) for integrated circuit (or IC) designs, electrical measurement hardware tools, various methodologies, and professional services. The company's products and services are sold to integrated device manufacturers (or IDMs), fabless semiconductor companies, foundries, outsourced semiconductor assembly and test (or OSATs), and system houses.
Executives
John Kachig Kibarian director, officer: CEO, President 333 WEST SAN CARLOS STREEET, SUITE 700, SAN JOSE CA 95110
Michael B Gustafson director 380 INTERLOCKEN CRESCENT, BROOMFIELD CO 80021
Andrzej Strojwas officer: CTO 2858 DE LA CRUZ BLVD., SANTA CLARA CA 95050
Nancy Erba director C/O INFINERA CORPORATION, 140 CASPIAN COURT, SUNNYVALE CA 94089
Shuo Zhang director PDF SOLUTIONS, INC., 2858 DE LA CRUZ BOULEVARD, SANTA CLARA CA 95050
Adnan Raza officer: EVP, Finance and CFO PDF SOLUTIONS, 2858 DE LA CRUZ BOULEVARD, SANTA CLARA CA 95050
Ye Jane Li director 200 FLYNN ROAD, CAMARILLO CA 93012-8790
Joseph R Bronson director 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Kimon Michaels director, officer: EVP of Products and Solutions 333 WEST SAN CARLOS STREET, SUITE 700, SAN JOSE CA 95110
Marco Iansiti director 92 HAVEN ST., DOVER MA 02038
Gerald Zheyao Yin director 2-10 WEIFANG XI ROAD, PUDONG NEW DISTRICT, SHANGHAI F4 200122
Russell Christine officer: VP, Finance and CFO 17165 PINE STREET, LOS GATOS CA 95032
Lucio Lanza director 141 CASPIAN COURT, SUNNYVALE CA 94089
Kwangh Kim officer: VP of Business Development 333 WEST SAN CARLOS STREET, SUITE 1000, SAN JOSE CA 95110
Gregory C Walker officer: CFO, VP Finance 2 RESULTS WAY, CUPERTINO CA 95014