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ASST (Asset Entities) Degree of Operating Leverage : 0.27 (As of Mar. 2025)


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What is Asset Entities Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Asset Entities's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ASST's Degree of Operating Leverage is ranked better than
58.5% of 547 companies
in the Interactive Media industry
Industry Median: 1.03 vs ASST: 0.27

Asset Entities Degree of Operating Leverage Historical Data

The historical data trend for Asset Entities'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.

Asset Entities Degree of Operating Leverage Chart

Asset Entities Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- - 54.14 -34.53 0.23

Asset Entities Quarterly Data
Dec20 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 9.77 3.85 0.55 0.23 0.27

Competitive Comparison of Asset Entities's Degree of Operating Leverage

For the Internet Content & Information subindustry, Asset Entities'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.


Asset Entities's Degree of Operating Leverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Asset Entities's Degree of Operating Leverage distribution charts can be found below:

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


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Asset Entities Degree of Operating Leverage Calculation

Asset Entities'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
=( -6.64 (Mar. 2025) / -5.246 (Mar. 2024) - 1 )/( 0.68 (Mar. 2025) / 0.341 (Mar. 2024) - 1 )
=0.2657/0.9941
=0.27***

* 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.


Asset Entities  (NAS:ASST) 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.


Asset Entities Degree of Operating Leverage Related Terms

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


Asset Entities Business Description

Traded in Other Exchanges
N/A
Address
100 Crescent Court, 7th Floor, Dallas, TX, USA, 75201
Asset Entities Inc is an Internet company providing social media marketing, content delivery, and development and design services across Discord, TikTok, and other social media platforms. The company has developed three categories of services, which include: providing subscription upgrades to premium content on investment education and entertainment servers on Discord; co-developing and executing influencer social media and marketing campaigns for clients; and designing, developing, and managing Discord servers for clients under AE.360.DDM brand. In addition, it offers Ternary v2, a cloud-based subscription management and payment processing solution for Discord communities, which includes a suite of customer relations management tools and Stripe-verified payment processing.
Executives
Arshia Sarkhani director, 10 percent owner, officer: CEO and President 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Jackson Fairbanks 10 percent owner, officer: Chief Marketing Officer 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Arman Sarkhani 10 percent owner, officer: Chief Operating Officer 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Kyle Fairbanks director, 10 percent owner, officer: Executive Vice-Chairman 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Matthew Krueger 10 percent owner, officer: CFO, Treasurer and Secretary 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Michael Gaubert director, 10 percent owner, officer: Executive Chairman 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Asset Entities Holdings, Llc 10 percent owner 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
James Sheldon Fairbanks 10 percent owner 3612 SUNSET VIEW DRIVE, FORTUNA CA 95540
Kavous Sarkhani 10 percent owner 13470 BLACK HILLS ROAD, SAN DIEGO CA 92129
Elham Nejad 10 percent owner 13470 BLACK HILLS ROAD, SAN DIEGO CA 92129
Jennifer Joan Fairbanks 10 percent owner 3612 SUNSET VIEW DRIVE, FORTUNA CA 95540
Richard Alfred Burton director 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Scott Kelley Mcdonald director 100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201
Kd Holdings Group, Llc 10 percent owner 4313 OAK KNOLL DRIVE, PLANO TX 75093
Richard Benavides 10 percent owner 5934 WALNUT HILL ROAD, DALLAS TX 75230