GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Activision Blizzard Inc (XTER:AIY) » Definitions » Degree of Operating Leverage

Activision Blizzard (XTER:AIY) Degree of Operating Leverage : 0.00 (As of Jun. 2023)


View and export this data going back to 2016. Start your Free Trial

What is Activision Blizzard Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Activision Blizzard's Degree of Operating Leverage for the quarter that ended in Jun. 2023 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XTER:AIY's Degree of Operating Leverage is not ranked *
in the Interactive Media industry.
Industry Median: 1.03
* Ranked among companies with meaningful Degree of Operating Leverage only.

Activision Blizzard Degree of Operating Leverage Historical Data

The historical data trend for Activision Blizzard'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.

Activision Blizzard Degree of Operating Leverage Chart

Activision Blizzard Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - -

Activision Blizzard Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 - - - - -

Competitive Comparison of Activision Blizzard's Degree of Operating Leverage

For the Electronic Gaming & Multimedia subindustry, Activision Blizzard'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.


Activision Blizzard's Degree of Operating Leverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Activision Blizzard's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Activision Blizzard Degree of Operating Leverage Calculation

Activision Blizzard's Degree of Operating Leverage for the quarter that ended in Jun. 2023 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 2544.431 (Jun. 2023) / 2032.569 (Jun. 2022) - 1 )/( 8265.899 (Jun. 2023) / 6834.323 (Jun. 2022) - 1 )
=0.2518/0.2095
=1.20***

* 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.


Activision Blizzard  (XTER:AIY) 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.


Activision Blizzard Degree of Operating Leverage Related Terms

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


Activision Blizzard Business Description

Traded in Other Exchanges
N/A
Address
2701 Olympic Boulevard, Building B, Santa Monica, CA, USA, 90404
Activision Blizzard was formed in 2008 by the merger of Activision, one of the largest console video game publishers, and Blizzard, one of largest PC video game publishers. The combined firm remains one of the world's largest video game publishers. Activision's impressive franchise portfolio includes World of Warcraft, which boasts more than $8 billion of lifetime sales, and Call of Duty, which has sold over 175 million copies across 14 titles over 12 years.

Activision Blizzard Headlines

No Headlines