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AGAE (Allied Gaming & Entertainment) Degree of Operating Leverage : 5.52 (As of Dec. 2024)


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What is Allied Gaming & Entertainment Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Allied Gaming & Entertainment's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 5.52. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Allied Gaming & Entertainment's Degree of Operating Leverage or its related term are showing as below:

AGAE's Degree of Operating Leverage is ranked worse than
75.41% of 984 companies
in the Media - Diversified industry
Industry Median: 1.22 vs AGAE: 5.52

Allied Gaming & Entertainment Degree of Operating Leverage Historical Data

The historical data trend for Allied Gaming & Entertainment'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.

Allied Gaming & Entertainment Degree of Operating Leverage Chart

Allied Gaming & Entertainment Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -3.13 -1.12 -0.95 -2.09 5.52

Allied Gaming & Entertainment Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -2.09 -0.51 1.90 1.41 5.52

Competitive Comparison of Allied Gaming & Entertainment's Degree of Operating Leverage

For the Entertainment subindustry, Allied Gaming & Entertainment'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.


Allied Gaming & Entertainment's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Allied Gaming & Entertainment's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Allied Gaming & Entertainment's Degree of Operating Leverage falls into.


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Allied Gaming & Entertainment Degree of Operating Leverage Calculation

Allied Gaming & Entertainment's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -13.381 (Dec. 2024) / -6.6 (Dec. 2023) - 1 )/( 9.079 (Dec. 2024) / 7.655 (Dec. 2023) - 1 )
=1.0274/0.186
=5.52***

* 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.


Allied Gaming & Entertainment  (NAS:AGAE) 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.


Allied Gaming & Entertainment Degree of Operating Leverage Related Terms

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


Allied Gaming & Entertainment Business Description

Traded in Other Exchanges
Address
745 Fifth Avenue, Suite 500, New York, NY, USA, 10151
Allied Gaming & Entertainment Inc is an experiential entertainment company focused on providing a growing world of gamers with various experiences through renowned assets, products, and services.
Executives
Roy Choi other: Managing Member of 10% holder 1933 S. BROADWAY, SUITE 746, LOS ANGELES CA 90007
Knighted Pastures Llc 10 percent owner 1933 S. BROADWAY, SUITE 746, LOS ANGELES CA 90007
Yuanfei Qu director 745 FIFTH AVE, SUITE 500, NEW YORK NY 10151
Yushi Guo director 745 FIFTH AVE, SUITE 500, NEW YORK NY 10151
Guanzhou Qin director 17877 VON KARMAN AVENUE, SUITE 300, IRVING CA 92614
Adam J Pliska director, officer: President 5700 WILSHIRE BOULEVARD, SUITE 350, LOS ANGELES CA 90036
Roy Lawrence Anderson officer: Chief Financial Officer 17877 VON KARMAN AVENUE, SUITE 300, IRVING CA 92614
Alexander Misch director 17872 GILLETTE AVENUE, BUILDING C, 2ND FLOOR, IRVINE CA 92614
Jerry Lewin director JINHUA INDUSTRIAL ZONE, JINHUA ZHEJIANG PROVINCE F4 321016
Libing Wu director 350 LIGHTING WAY, SECAUCUS NJ 07094
Jingsheng Lu director, 10 percent owner FLOOR 3, BUILDING NO. 20, XINYUANLI WEST, CHAOYANG DISTRICT, BEIJING F4 #000
Yangyang Li director, 10 percent owner 10/F TOWER B FAIRMONT NO. 1 BUILDING, 33# COMMUNITY, GUANGSHUN NORTH ST, CHAOYANG DISTRICT, BEIJING F4 100102
Anthony A Hung officer: Chief Financial Officer 17877 VON KARMAN AVENUE, SUITE 300, IRVINE CA 92614
Element Partners, Llc 10 percent owner 950 TOWER LANE,, SUITE 1125, FOSTER CITY CA 94404
Lyle Berman director 10275 WAYZATA BOULEVARD, SUITE 100, MINNETONKA MN 55305