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Allot (ALLT) Degree of Operating Leverage : 2.60 (As of Jun. 2024)


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What is Allot Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Allot's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 2.60. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ALLT's Degree of Operating Leverage is ranked worse than
70.12% of 2651 companies
in the Software industry
Industry Median: 0.6 vs ALLT: 2.60

Allot Degree of Operating Leverage Historical Data

The historical data trend for Allot'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.

Allot Degree of Operating Leverage Chart

Allot Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.40 0.18 12.10 -8.25 -4.35

Allot Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -6.93 -3.56 -4.35 -2.77 2.60

Competitive Comparison of Allot's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Allot'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.


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

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

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



Allot Degree of Operating Leverage Calculation

Allot's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -34.399 (Jun. 2024) / -51.33 (Jun. 2023) - 1 )/( 91.031 (Jun. 2024) / 104.242 (Jun. 2023) - 1 )
=-0.3298/-0.1267
=2.60***

* 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.


Allot  (NAS:ALLT) 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.


Allot Degree of Operating Leverage Related Terms

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


Allot Business Description

Industry
Traded in Other Exchanges
Address
22 Hanagar Street, Neve Ne’eman Industrial Zone B, Hod-Hasharon, ISR, 4501317
Allot Ltd is a provider of network intelligence and security solutions for service providers and enterprises. The company's solutions are deployed globally for network and application analytics, traffic control and shaping, and network-based security services. The firm's multi-service platforms are deployed by mobile, fixed, and cloud service providers and enterprises. It has a customer base in Europe, Asia and Oceania, the Americas, the Middle East, and Africa.
Executives
Gemini Israel Ii Parallel Fund Lp /ny 10 percent owner
Gemini Israel Ii Limited Partnership 10 percent owner 9 HAMENOFIM STREET, HERZLIYA PITUACH L3 46725
Gemini Israel Funds Ltd. 10 percent owner 9 HAMENOFIM STREET, HERZLIYA PITUACH L3 46725
Gemini Partners Investors L.p. 10 percent owner 9 HAMENOFIM STREET, HERZLIYA PITUACH L3 46725
Gemini Capital Associates Limited Partnership 10 percent owner 9 HAMENOFIM STREET, HERZLIYA PITUACH L3 46725
Advent Pggm Gemini Limited Partnership 10 percent owner 9 HAMENOFIM STREET, HERZLIYA PITUACH L3 46725

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