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Prosus NV (CHIX:PRXA) Degree of Operating Leverage : -2.83 (As of Sep. 2024)


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What is Prosus NV Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Prosus NV's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -2.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CHIX:PRXa's Degree of Operating Leverage is ranked better than
78.24% of 547 companies
in the Interactive Media industry
Industry Median: 1 vs CHIX:PRXa: -2.83

Prosus NV Degree of Operating Leverage Historical Data

The historical data trend for Prosus NV'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.

Prosus NV Degree of Operating Leverage Chart

Prosus NV Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.38 1.82 25.40 -8.54 -4.88

Prosus NV Semi-Annual Data
Mar17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 11.61 -8.54 11.17 -4.88 -2.83

Competitive Comparison of Prosus NV's Degree of Operating Leverage

For the Internet Content & Information subindustry, Prosus NV'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.


Prosus NV's Degree of Operating Leverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Prosus NV's Degree of Operating Leverage distribution charts can be found below:

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


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Prosus NV Degree of Operating Leverage Calculation

Prosus NV's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 7899.561 (Sep. 2024) / 10684.662 (Sep. 2023) - 1 )/( 5347.783 (Sep. 2024) / 4896.224 (Sep. 2023) - 1 )
=-0.2607/0.0922
=-2.83***

* 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.


Prosus NV  (CHIX:PRXa) 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.


Prosus NV Degree of Operating Leverage Related Terms

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Prosus NV Business Description

Address
Gustav Mahlerplein 5, Symphony Offices, Amsterdam, NH, NLD, 1082 MS
Prosus NV is a consumer internet group operating across a variety of platforms and geographies. The group's businesses operate in China, India, Russia, Central and Eastern Europe, North America, Latin America, Southeast Asia, the Middle East, and Africa. The group's businesses and investments are organized around the following segments: Ecommerce, which comprises its interests in Classifieds, Payments, and Fintech, Food Delivery, Etail, Travel, and other Ecommerce, Social and Internet Platforms, which comprises its interests in Tencent and Mail.ru Group and Corporate which relates to group-level corporate services and treasury function.

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