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Mad Paws Holdings (ASX:MPA) Degree of Operating Leverage : 23.73 (As of Dec. 2024)


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What is Mad Paws Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Mad Paws Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 23.73. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Mad Paws Holdings's Degree of Operating Leverage or its related term are showing as below:

ASX:MPA's Degree of Operating Leverage is ranked worse than
96.94% of 98 companies
in the Personal Services industry
Industry Median: 1.02 vs ASX:MPA: 23.73

Mad Paws Holdings Degree of Operating Leverage Historical Data

The historical data trend for Mad Paws Holdings'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.

Mad Paws Holdings Degree of Operating Leverage Chart

Mad Paws Holdings Annual Data
Trend Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
- -0.03 -0.10 -1.46

Mad Paws Holdings Semi-Annual Data
Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial 0.20 -0.10 -0.57 -1.46 23.73

Competitive Comparison of Mad Paws Holdings's Degree of Operating Leverage

For the Personal Services subindustry, Mad Paws Holdings'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.


Mad Paws Holdings's Degree of Operating Leverage Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Mad Paws Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Mad Paws Holdings's Degree of Operating Leverage falls into.


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Mad Paws Holdings Degree of Operating Leverage Calculation

Mad Paws Holdings'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
=( -8.901 (Dec. 2024) / -7.19 (Dec. 2023) - 1 )/( 26.184 (Dec. 2024) / 25.924 (Dec. 2023) - 1 )
=0.238/0.01
=23.73***

* 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.


Mad Paws Holdings  (ASX:MPA) 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.


Mad Paws Holdings Degree of Operating Leverage Related Terms

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Mad Paws Holdings Business Description

Traded in Other Exchanges
N/A
Address
126-130 Phillip Street, Level 5, Sydney, NSW, AUS, 2000
Mad Paws Holdings Ltd is an Australian-based pet services business whose primary activity is the operation of a pet care services online marketplace. The Mad Paws marketplace matches and connects pet owners seeking pet care services, such as pet sitting, walking, daycare, and grooming, with pet sitters, walkers, and other pet service providers registered on the marketplace. The company operates in two segments, marketplace, and E-commerce & subscription. The majority of revenue is derived from e-commerce & subscription segments.