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COSOLASX:COS 43 Degree of Operating Leverage is 27.92 as of Dec. 2025. GuruFocus rates ASX:COS with a GF Score™ of 43/100 and a GF Value™ of A$1.00 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,709 Software companies, COSOL ranks worse than 93.02% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
COSOL's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 27.92. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for COSOL's Degree of Operating Leverage or its related term are showing as below:
ASX:COS's Degree of Operating Leverage is ranked worse than 93.02% of 2709
companies
in the Software industry
Industry Median: 0.61
vs ASX:COS: 27.92
COSOL (ASX:COS) 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.
COSOL Degree of Operating Leverage Related Terms
COSOL Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for COSOL'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.
ASX:COS vs IBM, ACN, FISV: Degree of Operating Leverage Comparison
For the Information Technology Services subindustry, COSOL'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.
COSOL Degree of Operating Leverage vs Software Industry
For the Software industry and Technology sector, COSOL's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where COSOL's Degree of Operating Leverage falls into.
* 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.
What does a Degree of Operating Leverage of 27.92 mean?
COSOL (ASX:COS) has a Degree of Operating Leverage of 27.92 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for COSOL and its competitors. According to the industry distribution chart, COSOL ranks #2520 out of 2709 companies in the Software industry, placing it in the top 93%.
Is COSOL's Degree of Operating Leverage too high?
COSOL's current Degree of Operating Leverage is 27.92. The Software industry median Degree of Operating Leverage is 0.61. COSOL's value of 27.92 is 4477% above this industry median. Based on the distribution chart, COSOL ranks #2520 out of 2709 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, COSOL has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does COSOL's Degree of Operating Leverage compare to IBM and ACN?
According to the Software industry distribution chart, COSOL ranks #2520 out of 2709 companies for Degree of Operating Leverage. This places COSOL in the lower half of its industry. The industry median Degree of Operating Leverage is 0.61. COSOL's value of 27.92 is 4477% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Software company?
The median Degree of Operating Leverage among Software companies is 0.61, based on 2,709 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. COSOL's current Degree of Operating Leverage of 27.92 is 4477% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for COSOL and its competitors. For the Software industry, the median Degree of Operating Leverage is 0.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. COSOL's current Degree of Operating Leverage is 27.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is COSOL stock overvalued right now?
Based on GuruFocus' analysis, COSOL (ASX:COS) is currently considered Possible Value Trap. The stock's GF Value™ is A$1.00, compared to a current price of A$0.23 — trading 77% below its estimated fair value. The current Degree of Operating Leverage is 27.92 and 4477% above the Software industry median of 0.61. COSOL's overall GF Score™ is 43/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For COSOL (ASX:COS), the current Degree of Operating Leverage is 27.92 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is COSOL (ASX:COS) Overvalued in 2026?
Based on GuruFocus' analysis, COSOL stock appears to be undervalued.
The current stock price of A$0.23 is trading 77% below its estimated GF Value™ of A$1.00.
GuruFocus considers COSOL to be Possible Value Trap.
Key valuation signals for ASX:COS:
Degree of Operating Leverage: 27.92
GF Value™: A$1.00 vs. price of A$0.23 (77% below fair value)
Industry Position: 4477% above the Software median (#2520 of 2709)
No single metric tells the full story. See the ASX:COS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
COSOL Ltd operates in the Information Technology(IT) and business services industry and provides EAM (enterprise asset management) related solutions and infrastructure-focused systems. It offers services such as digital business solutions which include business process and strategic reviews, implementation of enterprise resource planning (ERP)/EAM solutions, data migration, and ongoing support services to clients. The company's revenue is generated from EAM/ERP support services; data migration, and legacy data services. Its geographical segment includes COSOL Asia Pacific and COSOL North America. The company derives a majority of its revenue from the Asia Pacific region.
43GF Score
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