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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Silicon Laboratories's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -3.15. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Silicon Laboratories's Degree of Operating Leverage or its related term are showing as below:
SLAB's Degree of Operating Leverage is ranked better than 78.88% of 1018
companies
in the Semiconductors industry
Industry Median: 0.95
vs SLAB: -3.15
Silicon Laboratories (NAS:SLAB) 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.
Silicon Laboratories Degree of Operating Leverage Related Terms
Silicon Laboratories Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Silicon Laboratories'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.
Silicon Laboratories Degree of Operating Leverage Chart
SLAB vs ALGM, SIMO, QRVO: Degree of Operating Leverage Comparison
For the Semiconductors subindustry, Silicon Laboratories'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.
Silicon Laboratories Degree of Operating Leverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Silicon Laboratories's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Silicon Laboratories's Degree of Operating Leverage falls into.
* 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.
What does a Degree of Operating Leverage of -3.15 mean?
Silicon Laboratories (SLAB) has a Degree of Operating Leverage of -3.15 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Silicon Laboratories and its competitors. According to the industry distribution chart, Silicon Laboratories ranks #215 out of 1018 companies in the Semiconductors industry, placing it in the top 21.1%.
Is Silicon Laboratories' Degree of Operating Leverage too high?
Silicon Laboratories' current Degree of Operating Leverage is -3.15. Based on the distribution chart, Silicon Laboratories ranks #215 out of 1018 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Silicon Laboratories has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Silicon Laboratories' Degree of Operating Leverage compare to ALGM and SIMO?
According to the Semiconductors industry distribution chart, Silicon Laboratories ranks #215 out of 1018 companies for Degree of Operating Leverage. This places Silicon Laboratories in the top 21% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 0.95. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Semiconductors company?
The median Degree of Operating Leverage among Semiconductors companies is 0.95, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Silicon Laboratories and its competitors. For the Semiconductors industry, the median Degree of Operating Leverage is 0.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Silicon Laboratories's current Degree of Operating Leverage is -3.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silicon Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Silicon Laboratories (SLAB) is currently considered Significantly Overvalued. The stock's GF Value™ is $166.82, compared to a current price of $220.50 — trading 32.2% above its estimated fair value. The current Degree of Operating Leverage is -3.15. Silicon Laboratories' overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Silicon Laboratories (SLAB), the current Degree of Operating Leverage is -3.15 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Silicon Laboratories (SLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Silicon Laboratories stock appears to be overvalued.
The current stock price of $220.50 is trading 32.2% above its estimated GF Value™ of $166.82.
GuruFocus considers Silicon Laboratories to be Significantly Overvalued.
Key valuation signals for SLAB:
Degree of Operating Leverage: -3.15
GF Value™: $166.82 vs. price of $220.50 (32.2% above fair value)
No single metric tells the full story. See the SLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Silicon Laboratories Inc Inc is a provider of secure, intelligent wireless technology for a more connected world. The company's integrated hardware and software platform, intuitive development tools, industry ecosystem, and robust support help customers build industrial, commercial, home, and life applications. Company make it easy for developers to solve complex wireless challenges throughout the product lifecycle and get to market quickly with solutions that transform industries, grow economies, and improve lives. Company operates in USA, China, Taiwan and Rest of World, with maximum revenue from rest of the world.
81GF Score
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