GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » ReAlpha Tech Corp (NAS:AIRE) » Definitions » Degree of Operating Leverage

AIRE (ReAlpha Tech) Degree of Operating Leverage : 0.59 (As of Mar. 2025)


View and export this data going back to 2023. Start your Free Trial

What is ReAlpha Tech Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ReAlpha Tech's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.59. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AIRE's Degree of Operating Leverage is ranked better than
55.29% of 1700 companies
in the Real Estate industry
Industry Median: 0.91 vs AIRE: 0.59

ReAlpha Tech Degree of Operating Leverage Historical Data

The historical data trend for ReAlpha Tech'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.

ReAlpha Tech Degree of Operating Leverage Chart

ReAlpha Tech Annual Data
Trend Apr21 Apr22 Apr23 Dec24
Degree of Operating Leverage
- - 0.03 1.33

ReAlpha Tech Quarterly Data
Apr21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 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 -3.12 0.95 -151.67 1.33 0.59

Competitive Comparison of ReAlpha Tech's Degree of Operating Leverage

For the Real Estate Services subindustry, ReAlpha Tech'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.


ReAlpha Tech's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, ReAlpha Tech's Degree of Operating Leverage distribution charts can be found below:

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


;
;

ReAlpha Tech Degree of Operating Leverage Calculation

ReAlpha Tech'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
=( -8.639 (Mar. 2025) / -2.994 (Mar. 2024) - 1 )/( 1.853 (Mar. 2025) / 0.444 (Mar. 2024) - 1 )
=1.8854/3.1734
=0.59***

* 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.


ReAlpha Tech  (NAS:AIRE) 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.


ReAlpha Tech Degree of Operating Leverage Related Terms

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


ReAlpha Tech Business Description

Industry
Traded in Other Exchanges
N/A
Address
6515 Longshore Loop, Suite 100, Dublin, OH, USA, 43017
ReAlpha Tech Corp is a real estate technology company. The group is engaged in an end-to-end commission-free homebuying platform. It develops and utilizes its artificial intelligence-focused technology stack to empower retail investor participation in short-term rental properties, which are real estate units listed for a rental term. It provides short-term rental investment opportunities to everyday investors. The company has developed technologies and tools that allow for the analysis of short-term rental properties using AI to provide insight into that property's potential profitability and ways to increase such profitability. The company's reportable segments are; Platform Services and the Rental business segment.
Executives
Dimitrios Angelis director 100 CANAL POINTE BLVD., SUITE 108, PRINCETON NJ 08540
Giri Devanur director, 10 percent owner, officer: CEO and President 100 CANAL POINTE BLVD., SUITE 108, PRINCETON NJ 08540
Jorge Aldecoa officer: Chief Operating Officer 6515 LONGSHORE LOOP, #100, DUBLIN OH 43017
Michael J. Logozzo officer: Chief Financial Officer 6515 LONGSHORE LOOP, #100, DUBLIN OH 43017
Monaz Karkaria director 6515 LONGSHORE LOOP, #100, DUBLIN OH 43017
Balaji Swaminathan director 6515 LONGSHORE LOOP, #100, DUBLIN OH 43017
Brian D. Cole director 6515 LONGSHORE LOOP, #100, DUBLIN OH 43017