GURUFOCUS.COM » STOCK LIST » Technology » Software » BigBear.ai Holdings Inc (NYSE:BBAI) » Definitions » Degree of Operating Leverage

BBAI (BigBear.ai Holdings) Degree of Operating Leverage : 4.45 (As of Mar. 2025)


View and export this data going back to 2021. Start your Free Trial

What is BigBear.ai Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. BigBear.ai Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.45. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BBAI's Degree of Operating Leverage is ranked worse than
78.76% of 2665 companies
in the Software industry
Industry Median: 0.79 vs BBAI: 4.45

BigBear.ai Holdings Degree of Operating Leverage Historical Data

The historical data trend for BigBear.ai 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.

BigBear.ai Holdings Degree of Operating Leverage Chart

BigBear.ai Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial - - -3.44 -490.41 245.91

BigBear.ai Holdings Quarterly Data
Dec19 Sep20 Dec20 Mar21 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 Premium Member Only Premium Member Only Premium Member Only -5.49 -17.67 38,262.67 245.91 4.45

Competitive Comparison of BigBear.ai Holdings's Degree of Operating Leverage

For the Information Technology Services subindustry, BigBear.ai 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.


BigBear.ai Holdings's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, BigBear.ai Holdings's Degree of Operating Leverage distribution charts can be found below:

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


;
;

BigBear.ai Holdings Degree of Operating Leverage Calculation

BigBear.ai Holdings'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
=( -205.395 (Mar. 2025) / -144.824 (Mar. 2024) - 1 )/( 159.872 (Mar. 2025) / 146.131 (Mar. 2024) - 1 )
=0.4182/0.094
=4.45***

* 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.


BigBear.ai Holdings  (NYSE:BBAI) 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.


BigBear.ai Holdings Degree of Operating Leverage Related Terms

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


BigBear.ai Holdings Business Description

Traded in Other Exchanges
Address
7950 Jones Branch Drive, 1st Floor North Tower, McLean, VA, USA, 22102
BigBear.ai Holdings Inc is a technology-led solutions organization, that provides both software and services to its customers. Its AI-powered decision intelligence solutions are leveraged in three markets; supply chains & logistics, autonomous systems, and cybersecurity. It operates in two segments; Cyber & Engineering segment and Analytics segment. Company generate revenue by providing customers with Edge AI-powered decision intelligence solutions and services for data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics and predictive visualization. It generate revenue from providing both software and services to customers.
Executives
Julie Peffer officer: Chief Financial Officer 1731 EMBARCADERO RD, SUITE 200, PALO ALTO CA 94303
Dorothy D Hayes director P.O. BOX 7850, ., MOUNTAIN VIEW CA 94039-7850
Sean Raymond Ricker officer: Corporate Controller 1731 EMBARCADERO RD., SUITE 200, PALO ALTO CA 94303
Ae Industrial Partners Fund Ii Gp, Lp 10 percent owner 2500 N. MILITARY TRAIL, SUITE 470, BOCA RATON FL 33431
Amanda Long director, officer: Chief Executive Officer 1731 EMBARCADERO ROAD, SUITE 200, PALO ALTO CA 94303
Sean Bernard Battle director 1731 EMBARCADERO RD., SUITE 2000, PALO ALTO CA 94303
Pamela Joyce Braden director 1731 EMBARCADERO RD., SUITE 200, PALO ALTO CA 94303
Avi S Katz director C/O GIGCAPITAL, INC., 3000 EL CAMINO REAL, BLDG 4, SUITE 232, PALO ALTO CA 94306
Raluca Dinu director C/O GIGCAPITAL2, INC., 2479 E. BAYSHORE RD., SUITE 200, PALO ALTO CA 94303
Norm Laudermilch officer: Chief Operating Officer 6811 BENJAMIN FRANKLIN DRIVE, SUITE 200, COLUMBIA MD 21046
Joshua Lane Kinley officer: Chief Financial Officer 1731 EMBARCADERO RD., SUITE 200, PALO ALTO CA 94303
Carolyn Blankenship officer: General Counsel and Secretary 1731 EMBARCADERO RD, SUITE 200, PALO ALTO CA 94303
Ae Industrial Partners Fund Ii-b, Lp 10 percent owner 2500 N. MILITARY TRAIL, SUITE 470, BOCA RATON FL 33431
Ae Industrial Partners Fund Ii-a, Lp 10 percent owner 2500 N. MILITARY TRAIL, SUITE 470, BOCA RATON FL 33431
Ae Industrial Partners Fund Ii, Lp 10 percent owner 2500 N. MILITARY TRAIL, SUITE 470, BOCA RATON FL 33431

BigBear.ai Holdings Headlines

From GuruFocus