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MXL (MaxLinear) Degree of Operating Leverage : 4.73 (As of Jun. 2024)


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What is MaxLinear Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. MaxLinear's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 4.73. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MXL's Degree of Operating Leverage is ranked worse than
78.45% of 970 companies
in the Semiconductors industry
Industry Median: 1.235 vs MXL: 4.73

MaxLinear Degree of Operating Leverage Historical Data

The historical data trend for MaxLinear'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.

MaxLinear Degree of Operating Leverage Chart

MaxLinear 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 -0.84 7.41 -1.85 7.92 3.38

MaxLinear 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 17.37 4.07 3.38 3.77 4.73

Competitive Comparison of MaxLinear's Degree of Operating Leverage

For the Semiconductors subindustry, MaxLinear'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.


MaxLinear's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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



MaxLinear Degree of Operating Leverage Calculation

MaxLinear'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
=( -188.505 (Jun. 2024) / 115.727 (Jun. 2023) - 1 )/( 448.142 (Jun. 2024) / 1008.696 (Jun. 2023) - 1 )
=-2.6289/-0.5557
=4.73***

* 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.


MaxLinear  (NAS:MXL) 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.


MaxLinear Degree of Operating Leverage Related Terms

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


MaxLinear Business Description

Industry
Traded in Other Exchanges
Address
5966 La Place Court, Suite 100, Carlsbad, CA, USA, 92008
MaxLinear Inc is a provider of radio frequency and mixed-signal integrated circuits for cable and satellite broadband communications, the connected home, and for data center, metro, and long-haul fiber networks. The company's radio frequency receiver products capture and process digital and analog broadband signals to be decoded for various applications. MaxLinear's product options include both radio frequency receivers and radio frequency receiver systems-on-chips. The company's products enable the distribution and display of broadband video and data content in a wide range of electronic devices. Customers for MaxLinear include original equipment manufacturers, module makers, and original design manufacturers.
Executives
Kishore Seendripu director, 10 percent owner, officer: President and CEO 5966 LA PLACE COURT, SUITE 100, CARLSBAD CA 92011
Tewksbury Ted L Iii director C/O INTEGRATED DEVICE TECHNOLOGY, INC., 6024 SILVER CREEK VALLEY ROAD, SAN JOSE CA 95138
James Lougheed officer: VP, Component Products 48720 KATO ROAD, FREMONT CA 94538
Michael Bollesen officer: Vice President of Sales C/O MAXLINEAR, INC., 5966 LA PLACE COURT, SUITE 100, CARLSBAD CA 92008
Michelle Marie Sayer officer: General Counsel C/O MAXLINEAR, INC., 5966 LA PLACE COURT, SUITE 100, CARLSBAD CA 92008
William Torgerson officer: Vice President, Global Sales 2051 PALOMAR AIRPORT ROAD, SUITE 100, CARLSBAD CA 92011
Daniel A Artusi director 5966 LA PLACE COURT, SUITE 100, CARLSBAD CA 92008
William Kelly Jones officer: VP of Worldwide Operations C/O MAXLINEAR, INC., 5966 LAPLACE COURT, SUITE 100, CARLSBAD CA 92008
Steven G Litchfield officer: See remarks C/O MAXLINEAR, INC., 5966 LA PLACE COURT, SUITE 100, SAN DIEGO CA 92008
Brendan Walsh officer: VP, Business Development 2051 PALOMAR AIRPORT RD, SUITE 100, CARLSBAD CA 92011
Curtis Ling director, officer: Chief Technical Officer 2051 PALOMAR AIRPORT RD, SUITE 100, CARLSBAD CA 92011
Donald E Schrock director C/O INTEGRATED DEVICE TECHNOLOGY, INC., 6024 SILVER CREEK VALLEY ROAD, SAN JOSE CA 95138
Kwong Connie H. officer: Corporate Controller & PAO C/O MAXLINEAR, INC., 5966 LA PLACE COURT, SUITE 100, CARLSBAD CA 92008
Tsu-jae King Liu director 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054
Madhukar Reddy officer: VP, ICs and RF Systems Enginee 2051 PALOMAR AIRPORT RD, SUITE 100, CARLSBAD CA 92011

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