GURUFOCUS.COM » STOCK LIST » Technology » Software » Tyro Payments Ltd (ASX:TYR) » Definitions » Degree of Operating Leverage

Tyro Payments (ASX:TYR) Degree of Operating Leverage : 47.89 (As of Dec. 2024)


View and export this data going back to 2019. Start your Free Trial

What is Tyro Payments Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Tyro Payments's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 47.89. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ASX:TYR's Degree of Operating Leverage is ranked worse than
95.5% of 2665 companies
in the Software industry
Industry Median: 0.79 vs ASX:TYR: 47.89

Tyro Payments Degree of Operating Leverage Historical Data

The historical data trend for Tyro Payments'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.

Tyro Payments Degree of Operating Leverage Chart

Tyro Payments Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial - -2.29 -0.50 -4.02 43.97

Tyro Payments Semi-Annual Data
Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.01 -4.02 -25.37 43.97 47.89

Competitive Comparison of Tyro Payments's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Tyro Payments'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.


Tyro Payments's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Tyro Payments's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Tyro Payments Degree of Operating Leverage Calculation

Tyro Payments'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
=( 32.563 (Dec. 2024) / 10.496 (Dec. 2023) - 1 )/( 468.855 (Dec. 2024) / 449.136 (Dec. 2023) - 1 )
=2.1024/0.0439
=47.89***

* 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.


Tyro Payments  (ASX:TYR) 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.


Tyro Payments Degree of Operating Leverage Related Terms

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


Tyro Payments Business Description

Industry
Traded in Other Exchanges
N/A
Address
55 Market Street, Level 18, Sydney, NSW, AUS, 2000
Tyro Payments is an Australian financial technology company engaged in providing routing payments solutions and business banking products to merchants. The firm mainly caters to small to medium-size enterprises in the hospitality, retail and health sectors. It is also expanding its reach into the trade, accommodation and services verticals. Tyro's value propositions include extensive industry-specific solutions, ease of integration with point-of-sale systems, broad acceptance of payment types and a variety of ancillary features. Despite Tyro's historic focus on in-store sales, it is also building up online gateways to facilitate e-commerce transactions and build out a multichannel payment solution. Geographically, it operates only in Australia.

Tyro Payments Headlines

No Headlines