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QMCO (Quantum) Degree of Operating Leverage : -29.10 (As of Dec. 2024)


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What is Quantum Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Quantum's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -29.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

QMCO's Degree of Operating Leverage is ranked better than
94.32% of 2413 companies
in the Hardware industry
Industry Median: 1 vs QMCO: -29.10

Quantum Degree of Operating Leverage Historical Data

The historical data trend for Quantum'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.

Quantum Degree of Operating Leverage Chart

Quantum Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3,107.36 10.32 -79.52 -13.46 -2.61

Quantum Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 7.97 -2.61 -6.16 -18.11 -29.10

Competitive Comparison of Quantum's Degree of Operating Leverage

For the Computer Hardware subindustry, Quantum'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.


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

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

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


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Quantum Degree of Operating Leverage Calculation

Quantum's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -104.053 (Dec. 2024) / -16.555 (Dec. 2023) - 1 )/( 285.864 (Dec. 2024) / 349.305 (Dec. 2023) - 1 )
=5.2853/-0.1816
=-29.10***

* 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.


Quantum  (NAS:QMCO) 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.


Quantum Degree of Operating Leverage Related Terms

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


Quantum Business Description

Industry
Traded in Other Exchanges
Address
224 Airport Parkway, Suite 550, San Jose, CA, USA, 95110
Quantum Corp is a United States-based company that delivers end-to-end data management solutions designed for unstructured data. The company provides solutions for the entire data lifecycle. The company specialize in solutions for video, images, audio, and other large files. The company's portfolio of products includes primary storage software and systems, secondary storage software and systems, as well as devices and media. The company's Primary Storage Software and Systems include Myriad All-Flash Software-Defined Storage, StorNext Hybrid Flash/Disk File Storage Software, and Unified Surveillance Platform Software. Secondary Storage Software and Systems include ActiveScale Object Storage Software and DXi Backup Appliances. The firm derives the majority of its revenue from United States.
Executives
Brian E Cabrera officer: Chief Legal & Ofcr; Corp Secy CALLIDUS SOFTWARE INC., 160 W. SANTA CLARA STREET, SUITE 1500, SAN JOSE CA 95113
James J Lerner director, officer: Pres. & CEO, Chairman of Board C/O SEAGATE TECHNOLOGY PLC, 10200 S. DEANZA BLVD., CUPERTINO CA 95014
Lewis W. Moorehead officer: Chief Accounting Officer 1 BROADWAY, 14TH FLOOR, CAMBRIDGE MA 02142
Pacific Investment Management Co Llc 10 percent owner 650 NEWPORT CENTER DRIVE, NEWPORT BEACH CA 92660
Laura A. Nash officer: Chief Accounting Officer C/O QUANTUM CORPORATION, 224 AIRPORT PARKWAY, SUITE 550, SAN JOSE CA 95110
Kenneth P. Gianella officer: Chief Financial Officer C/O SILVER SPRING NETWORKS, INC., 230 W. TASMAN DRIVE, SAN JOSE CA 95134
John Hurley officer: Chief Revenue Officer 224 AIRPORT PARKWAY, SUITE 550, SAN JOSE CA 95110
Hugues Meyrath director 1745 TECHNOLOGY DRIVE, SAN JOSE CA 95110
Don Jaworksi director 224 AIRPORT PARKWAY SUITE 550, C/O QUANTUM CORPORATION, SAN JOSE CA 95110
J Michael Dodson officer: Senior Vice President, CFO 1220 N. SIMON CIRCLE, ANAHEIM CA 92806
Christopher D. Neumeyer director 224 AIRPORT PARKWAY SUITE 550, SAN JOSE CA 95110
Yue Zhou White director C/O QUANTUM CORPORATION, 224 AIRPORT PARKWAY, SUITE 550, SAN JOSE CA 95110
Marc E Rothman director 1303 E ALGONQUIN ROAD, SCHAUMBURG X1 60196
Raghavendra Rau director C/O XPERI HOLDING CORPORATION, 3025 ORCHARD PARKWAY, SAN JOSE CA 95134
John Fichthorn director C/O DIALECTIC CAPITAL MANAGEMENT, LLC, 17 STATE STREET, SUITE 3930, NEW YORK NY 10004