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QCOM (Qualcomm) Degree of Operating Leverage : 1.96 (As of Mar. 2025)


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What is Qualcomm Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Qualcomm's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.96. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

QCOM's Degree of Operating Leverage is ranked worse than
61.59% of 992 companies
in the Semiconductors industry
Industry Median: 0.995 vs QCOM: 1.96

Qualcomm Degree of Operating Leverage Historical Data

The historical data trend for Qualcomm'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.

Qualcomm Degree of Operating Leverage Chart

Qualcomm Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.22 1.67 1.36 2.50 4.06

Qualcomm 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 2.25 0.95 4.06 2.79 1.96

Competitive Comparison of Qualcomm's Degree of Operating Leverage

For the Semiconductors subindustry, Qualcomm'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.


Qualcomm's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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


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Qualcomm Degree of Operating Leverage Calculation

Qualcomm'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
=( 12289 (Mar. 2025) / 9332 (Mar. 2024) - 1 )/( 42285 (Mar. 2025) / 36406 (Mar. 2024) - 1 )
=0.3169/0.1615
=1.96***

* 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.


Qualcomm  (NAS:QCOM) 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.


Qualcomm Degree of Operating Leverage Related Terms

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


Qualcomm Business Description

Industry
Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones, as well as chips into automotive and Internet of Things markets.
Executives
Akash J. Palkhiwala officer: SVP & Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Heather S Ace officer: EVP, Human Resources 3721 VALLEY CENTRE DR SUITE 500, SAN DIEGO CA 92130
Neil Martin officer: SVP, Finance and CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Alexander H Rogers officer: EVP & President, QTL 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Ann C Chaplin officer: General Counsel&Corp Secretary 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
James H Thompson officer: EVP, Qualcomm Technologies Inc 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Neil Smit director C/O AMERICA ONLINE LATIN AMERICA, INC., 6600 N. ANDREWS AVE., SUITE 400, FT. LAUDERDALE FL 33309
Cristiano R Amon officer: President 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Sylvia Acevedo director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
James J Cathey officer: Chief Commercial Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Jeffrey William Henderson director 7000 CARDINAL PLACE, DUBLIN OH 43017
Erin L Polek officer: SVP Corporate Controller & CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Donald J Rosenberg officer: EVP, GC & Corporate Secretary QUALCOMM INCORPORATED, 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Brian Modoff officer: EVP, Strategy and M&A 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Gregory N Johnson director C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043