GURUFOCUS.COM » STOCK LIST » Technology » Software » Unity Software Inc (STU:US3) » Definitions » Degree of Operating Leverage

Unity Software (STU:US3) Degree of Operating Leverage : 2.99 (As of Mar. 2025)


View and export this data going back to 2021. Start your Free Trial

What is Unity Software Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Unity Software's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.99. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:US3's Degree of Operating Leverage is ranked worse than
73.79% of 2659 companies
in the Software industry
Industry Median: 0.78 vs STU:US3: 2.99

Unity Software Degree of Operating Leverage Historical Data

The historical data trend for Unity Software'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.

Unity Software Degree of Operating Leverage Chart

Unity Software Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 1.45 2.15 2.55 -0.20 0.98

Unity Software 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 -0.33 -1.23 1.38 0.98 2.99

Competitive Comparison of Unity Software's Degree of Operating Leverage

For the Software - Application subindustry, Unity Software'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.


Unity Software's Degree of Operating Leverage Distribution in the Software Industry

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

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


;
;

Unity Software Degree of Operating Leverage Calculation

Unity Software'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
=( -385.223 (Mar. 2025) / -765.494 (Mar. 2024) - 1 )/( 1658.579 (Mar. 2025) / 1984.574 (Mar. 2024) - 1 )
=-0.4968/-0.1643
=3.02***

* 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.


Unity Software  (STU:US3) 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.


Unity Software Degree of Operating Leverage Related Terms

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


Unity Software Business Description

Industry
Traded in Other Exchanges
Address
116 New Montgomery Street, San Francisco, CA, USA, 94105-3607
Unity Software Inc provides a software platform for creating and operating interactive, real-time 3D content. The platform can be used to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The business is spread across the United States, Greater China, EMEA, APAC, and other Americas, and key revenue is derived from the EMEA region. The products are used in the gaming industry, retail, automotive, architecture, engineering, and construction.

Unity Software Headlines

No Headlines