GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Socket Mobile Inc (NAS:SCKT) » Definitions » Degree of Operating Leverage

SCKT (Socket Mobile) Degree of Operating Leverage : -2.08 (As of Dec. 2024)


View and export this data going back to 1995. Start your Free Trial

What is Socket Mobile Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Socket Mobile's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -2.08. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SCKT's Degree of Operating Leverage is ranked better than
75.35% of 2422 companies
in the Hardware industry
Industry Median: 1.045 vs SCKT: -2.08

Socket Mobile Degree of Operating Leverage Historical Data

The historical data trend for Socket Mobile'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.

Socket Mobile Degree of Operating Leverage Chart

Socket Mobile 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 34.32 -3.88 13.74 -30.30 -2.08

Socket Mobile 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 -5.21 -6.44 -3.31 -2.08 -

Competitive Comparison of Socket Mobile's Degree of Operating Leverage

For the Computer Hardware subindustry, Socket Mobile'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.


Socket Mobile's Degree of Operating Leverage Distribution in the Hardware Industry

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

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


;
;

Socket Mobile Degree of Operating Leverage Calculation

Socket Mobile'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
=( -2.463 (Dec. 2024) / -3.121 (Dec. 2023) - 1 )/( 18.763 (Dec. 2024) / 17.034 (Dec. 2023) - 1 )
=-0.2108/0.1015
=-2.08***

* 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.


Socket Mobile  (NAS:SCKT) 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.


Socket Mobile Degree of Operating Leverage Related Terms

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


Socket Mobile Business Description

Industry
Traded in Other Exchanges
Address
40675 Encyclopedia Circle, Fremont, CA, USA, 94538
Socket Mobile Inc is a producer of data capture products. The company's products are integrated into mobile applications used in mobile point of sale (mPOS), commercial services (field workers), asset tracking, manufacturing process and quality control, transportation and logistics (goods tracking and movement), event management (ticketing, entry, access control, and identification), medical and education. The company offers barcode scanning products for both one-dimensional, including imager and laser, and two-dimensional barcode scanning in standard and durable cases. The company's geographical segments are the Americas, Europe, Asia Pacific, and Africa, of which the majority of the revenue is generated from the United States.
Executives
Charlie Bass director 40675 ENCYCLOPEDIA CIR., FREMONT CA 94538
Parnell William L. Jr director 40675 ENCYCLOPEDIA CIR, FREMONT CA 94538
Kevin J Mills director, officer: President and CEO 40675 ENCYCLOPEDIA CIR., FREMONT CA 94538
Giacomo Marini director 40675 ENCYCLOPEDIA CIR., FREMONT CA 94538
Laura Weinstein director 40675 ENCYCLOPEDIA CIRCLE, FREMONT CA 94538
Leonard L Ott officer: Chief Technical Officer 37400 CENTRAL COURT, NEWARK CA 94560
David A. Holmes officer: Chief Business Officer 39700 EUREKA DRIVE, NEWARK CA 94560
Lynn Zhao officer: Vice President and Controller 39700 EUREKA DRIVE, NEWARK CA 94560
David W Dunlap officer: CFO 37400 CENTRAL COURT, NEWARK CA 94560
Ivan Lazarev director 40675 ENCYCLOPEDIA CIR, FREMONT CA 94538
Nelson C Chan director C/O SYNAPTICS INCORPORATED, 1251 MCKAY DRIVE, SAN JOSE CA 95131
Brenton Earl Macdonald director 39700 EUREKA DRIVE, NEWARK CA 94560
James Lopez officer: VP Marketing & Business Dev. 39700 EUREKA DRIVE, NEWARK CA 94560
Erik L. Fidel director 39700 EUREKA DRIVE, NEWARK CA 94560
Kevin R Jost director 10370 RICHMOND AVENUE, SUITE 600, HOUSTON TX 77042