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ACVA (ACV Auctions) Degree of Operating Leverage : -0.30 (As of Mar. 2025)


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What is ACV Auctions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ACV Auctions's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.30. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ACVA's Degree of Operating Leverage is ranked better than
67.26% of 1289 companies
in the Vehicles & Parts industry
Industry Median: 1.06 vs ACVA: -0.30

ACV Auctions Degree of Operating Leverage Historical Data

The historical data trend for ACV Auctions'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.

ACV Auctions Degree of Operating Leverage Chart

ACV Auctions Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.51 1.28 1.81 -1.95 0.07

ACV Auctions 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 -1.02 -0.24 -0.07 0.07 -0.30

Competitive Comparison of ACV Auctions's Degree of Operating Leverage

For the Auto & Truck Dealerships subindustry, ACV Auctions'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.


ACV Auctions's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, ACV Auctions's Degree of Operating Leverage distribution charts can be found below:

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


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ACV Auctions Degree of Operating Leverage Calculation

ACV Auctions'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
=( -67.814 (Mar. 2025) / -75.128 (Mar. 2024) - 1 )/( 674.164 (Mar. 2025) / 507.297 (Mar. 2024) - 1 )
=-0.0974/0.3289
=-0.30***

* 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.


ACV Auctions  (NYSE:ACVA) 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.


ACV Auctions Degree of Operating Leverage Related Terms

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


ACV Auctions Business Description

Traded in Other Exchanges
N/A
Address
640 Ellicott Street, Suite 321, Buffalo, NY, USA, 14203
ACV Auctions Inc is a mobile platform for wholesale car auctions. The company provides a digital marketplace for wholesale vehicle transactions and data services that offer transparent and accurate vehicle information for customers.
Executives
Michael Waterman officer: Chief Sales Officer C/O ACV AUCTIONS INC., 640 ELLICOTT STREET, #321, BUFFALO NY 14203
George Chamoun director, officer: Chief Executive Officer C/O SYNACOR, INC., 40 LA RIVIERE DRIVE, SUITE 300, BUFFALO NY 14202
William Zerella officer: Chief Financial Officer C/O FITBIT, INC., 405 HOWARD STREET, SAN FRANCISCO CA 94105
Craig Eric Anderson officer: CCDSO and Chief Legal Officer C/O ACV AUCTIONS INC., 640 ELLICOTT STREET, #321, BUFFALO NY 14203
Brian Hirsch director C/O ACV AUCTIONS INC., 640 ELLICOTT STREET, #321, BUFFALO NY 14203
Vikas Mehta officer: Chief Operating Officer C/O ACV AUCTIONS INC., 640 ELLICOTT STREET, #321, BUFFALO NY 14203
Eileen A Kamerick director 200 NORTH ADAMS STREET, GREEN BAY WI 54301
Leanne Fitzgerald officer: Chief Legal Officer 1 WAYSIDE ROAD, BURLINGTON MA 01803
Kirsten Castillo director 5 GREAT VALLEY PARKWAY, SUITE 160, MALVERN PA 19355
Bessemer Venture Partners Ix L.p. 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Robert P Goodman director 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Bessemer Venture Partners Ix Institutional L.p. 10 percent owner 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Deer Ix & Co. L.p. 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Deer Ix & Co. Ltd. 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
15 Angels Iii Llc 10 percent owner 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538