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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
RAS Technology Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -11.89. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for RAS Technology Holdings's Degree of Operating Leverage or its related term are showing as below:
ASX:RTH's Degree of Operating Leverage is ranked better than 88.38% of 2711
companies
in the Software industry
Industry Median: 0.65
vs ASX:RTH: -11.89
RAS Technology Holdings (ASX:RTH) 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.
RAS Technology Holdings Degree of Operating Leverage Related Terms
RAS Technology Holdings Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for RAS Technology 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.
RAS Technology Holdings Degree of Operating Leverage Chart
ASX:RTH vs MSFT, PLTR, ORCL: Degree of Operating Leverage Comparison
For the Software - Infrastructure subindustry, RAS Technology 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.
RAS Technology Holdings Degree of Operating Leverage vs Software Industry
For the Software industry and Technology sector, RAS Technology Holdings's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where RAS Technology Holdings'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 -11.89 mean?
RAS Technology Holdings (ASX:RTH) has a Degree of Operating Leverage of -11.89 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for RAS Technology Holdings and its competitors. According to the industry distribution chart, RAS Technology Holdings ranks #315 out of 2711 companies in the Software industry, placing it in the top 11.6%.
Is RAS Technology Holdings' Degree of Operating Leverage too high?
RAS Technology Holdings' current Degree of Operating Leverage is -11.89. Based on the distribution chart, RAS Technology Holdings ranks #315 out of 2711 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, RAS Technology Holdings has a GF Score™ of 47/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RAS Technology Holdings' Degree of Operating Leverage compare to MSFT and PLTR?
According to the Software industry distribution chart, RAS Technology Holdings ranks #315 out of 2711 companies for Degree of Operating Leverage. This places RAS Technology Holdings in the top 12% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 0.65. 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 0.65, based on 2,711 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. 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 RAS Technology Holdings and its competitors. For the Software industry, the median Degree of Operating Leverage is 0.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RAS Technology Holdings's current Degree of Operating Leverage is -11.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RAS Technology Holdings stock overvalued right now?
Based on GuruFocus' analysis, RAS Technology Holdings (ASX:RTH) is currently considered Significantly Undervalued. The stock's GF Value™ is A$1.48, compared to a current price of A$0.64 — trading 56.8% below its estimated fair value. The current Degree of Operating Leverage is -11.89. RAS Technology Holdings' overall GF Score™ is 47/100. 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 RAS Technology Holdings (ASX:RTH), the current Degree of Operating Leverage is -11.89 as of Jun. 2026. 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 RAS Technology Holdings (ASX:RTH) Overvalued in 2026?
Based on GuruFocus' analysis, RAS Technology Holdings stock appears to be undervalued.
The current stock price of A$0.64 is trading 56.8% below its estimated GF Value™ of A$1.48.
GuruFocus considers RAS Technology Holdings to be Significantly Undervalued.
Key valuation signals for ASX:RTH:
Degree of Operating Leverage: -11.89
GF Value™: A$1.48 vs. price of A$0.64 (56.8% below fair value)
No single metric tells the full story. See the ASX:RTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RAS Technology Holdings Ltd is a provider of fully integrated premium data, enhanced content, SaaS solutions, and digital and media services to the racing and wagering industries. Geographically, the company operates in Australia, the United Kingdom, the United States, Asia, and the Rest of the World. The company generates the majority of its revenue from Australia.
47GF Score
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