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SITM (SiTime) Degree of Operating Leverage : -0.14 (As of Mar. 2025)


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What is SiTime Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. SiTime's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.14. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SITM's Degree of Operating Leverage is ranked better than
63.05% of 996 companies
in the Semiconductors industry
Industry Median: 0.975 vs SITM: -0.14

SiTime Degree of Operating Leverage Historical Data

The historical data trend for SiTime'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.

SiTime Degree of Operating Leverage Chart

SiTime Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 1.98 -5.45 -1.72 14.55 0.12

SiTime 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 -17.91 -3.83 2.30 0.12 -0.14

Competitive Comparison of SiTime's Degree of Operating Leverage

For the Semiconductors subindustry, SiTime'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.


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

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

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


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SiTime Degree of Operating Leverage Calculation

SiTime'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
=( -99.267 (Mar. 2025) / -109.118 (Mar. 2024) - 1 )/( 229.989 (Mar. 2025) / 138.673 (Mar. 2024) - 1 )
=-0.0903/0.6585
=-0.14***

* 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.


SiTime  (NAS:SITM) 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.


SiTime Degree of Operating Leverage Related Terms

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


SiTime Business Description

Industry
Traded in Other Exchanges
N/A
Address
5451 Patrick Henry Drive, Santa Clara, CA, USA, 95054
SiTime Corp is a provider of silicon timing systems solutions. The company designs develops and sell silicon timing systems solutions for different industries including automotive, infrastructure, aerospace-defense, consumer, internet of things, consumer and industrials. Its product offerings include Stratum 3E DCOCXOs, Programmable OCXOs, MHz Oscillators, 32.768 kHz Oscillators, Embedded Resonators, Precision MHz Super-TCXOs, and Ruggedized Oscillators. It sells its products around Taiwan, Hong Kong, the United States, and other regions and generates the majority of its revenue from Taiwan.
Executives
Lionel Bonnot officer: See Remarks 3450 W. WARREN AVENUE, FREMONT CA 94538
Tom Dang-hsing Yiu director C/O SITIME CORPORATION, 5451 PATRICK HENRY DRIVE, SANTA CLARA CA 95054
Torsten Kreindl director C/O SITIME CORPORATION, 5451 PATRICK HENRY DRIVE, SANTA CLARA CA 95054
Vincent P Pangrazio officer: EVP & Chief Legal Officer C/O CAVIUM NETWORKS, INC., 805 EAST MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Fariborz Assaderaghi officer: See Remarks C/O SITIME CORPORATION, 5451 PATRICK HENRY DR., SANTA CLARA CA 95054
Rajesh Vashist director, officer: Chief Executive Officer C/O SITIME CORPORATION, 5451 PATRICK HENRY DR., SANTA CLARA CA 95054
Megachips Corp /fi 10 percent owner 1-1-1 MIYAHARA, YODOGAWA-KU, OSAKA M0 532-0003
Piyush B Sevalia officer: See Remarks C/O SITIME CORPORATION, 5451 PATRICK HENRY DRIVE, SANTA CLARA CA 95054
Raman Chitkara director 2100 LOGIC DRIVE, SAN JOSE CA 95124
Katherine Schuelke director 47488 KATO ROAD, FREMONT CA 94538
Arthur D Chadwick officer: See Remarks 280 N BERNARDO AVE, MOUNTAIN VIEW CA 94043
Edward H. Frank director C/O FUSION-IO, INC., 2855 E. COTTONWOOD PARKWAY, SUITE 100, SALT LAKE CITY UT 84121
Akira Takata director C/O SITIME CORPORATION, 5451 PATRICK HENRY DRIVE, SANTA CLARA CA 95054
Christine Heckart director C/O LAM RESEARCH CORPORATION, 4650 CUSHING PARKWAY, FREMONT CA 94538