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SWKS (Skyworks Solutions) Degree of Operating Leverage : 3.61 (As of Mar. 2025)


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What is Skyworks Solutions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Skyworks Solutions's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SWKS's Degree of Operating Leverage is ranked worse than
73.49% of 996 companies
in the Semiconductors industry
Industry Median: 0.975 vs SWKS: 3.61

Skyworks Solutions Degree of Operating Leverage Historical Data

The historical data trend for Skyworks Solutions'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.

Skyworks Solutions Degree of Operating Leverage Chart

Skyworks Solutions Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.06 1.56 -0.74 1.92 3.34

Skyworks Solutions 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 2.58 2.72 3.34 3.25 3.61

Competitive Comparison of Skyworks Solutions's Degree of Operating Leverage

For the Semiconductors subindustry, Skyworks Solutions'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.


Skyworks Solutions's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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


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Skyworks Solutions Degree of Operating Leverage Calculation

Skyworks Solutions'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
=( 511.7 (Mar. 2025) / 958.6 (Mar. 2024) - 1 )/( 3952.2 (Mar. 2025) / 4537.5 (Mar. 2024) - 1 )
=-0.4662/-0.129
=3.61***

* 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.


Skyworks Solutions  (NAS:SWKS) 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.


Skyworks Solutions Degree of Operating Leverage Related Terms

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


Skyworks Solutions Business Description

Address
5260 California Avenue, Irvine, CA, USA, 92617
Skyworks Solutions produces semiconductors for wireless handsets and other devices that are used to enable wireless connectivity. Its main products include power amplifiers, filters, switches, and integrated front-end modules that support wireless transmissions. Skyworks' customers are mostly large smartphone manufacturers, but the firm also has a growing presence in nonhandset applications such as wireless routers, medical devices, and automobiles.
Executives
Robert John Terry officer: VP, General Counsel &Secretary 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Reza Kasnavi officer: SVP, Tech. & Manufacturing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Carlos S Bori officer: VP, Sales & Marketing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Philip Matthew Carter officer: VP, Corp. Controller 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Robert A Schriesheim director 3333 BEVERLY ROAD, HOFFMAN ESTATES IL 60179
Liam Griffin officer: VP, Sales and Marketing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Karilee A Durham officer: SVP, Human Resources 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Kris Sennesael officer: SVP & Chief Financial Officer 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Kevin L Beebe director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
Maryann Turcke director C/O NORTHERN STAR INVESTMENT CORP. II, 405 LEXINGTON AVENUE, NEW YORK NY 10174
Suzanne E. Mcbride director C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD, SUITE 1400, MCLEAN VA 22102
Eric Guerin director 1950 HASSELL ROAD, HOFFMAN ESTATES IL 60169
Timothy R Furey director 5260 CALIFORNIA AVENUE, IRVINE CA 92617
P Mcglade David director 5260 CALIFORNIA AVENUE, IRVINE CA 92617
David J Aldrich director, officer: President and CEO 20 SYLVAN ROAD, WOBURN MA 01801