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CPAY (Corpay) Degree of Operating Leverage : 0.90 (As of Mar. 2025)


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What is Corpay Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Corpay's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.90. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CPAY's Degree of Operating Leverage is ranked worse than
52.42% of 2665 companies
in the Software industry
Industry Median: 0.79 vs CPAY: 0.90

Corpay Degree of Operating Leverage Historical Data

The historical data trend for Corpay'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.

Corpay Degree of Operating Leverage Chart

Corpay Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.79 1.11 0.85 1.68 0.98

Corpay Quarterly Data
Jun20 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 1.83 1.95 1.21 0.98 0.90

Competitive Comparison of Corpay's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Corpay'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.


Corpay's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Corpay Degree of Operating Leverage Calculation

Corpay'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
=( 1795.211 (Mar. 2025) / 1693.351 (Mar. 2024) - 1 )/( 4045.005 (Mar. 2025) / 3791.637 (Mar. 2024) - 1 )
=0.0602/0.0668
=0.90***

* 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.


Corpay  (NYSE:CPAY) 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.


Corpay Degree of Operating Leverage Related Terms

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


Corpay Business Description

Industry
Traded in Other Exchanges
Address
3280 Peachtree Road, Suite 2400, Atlanta, GA, USA, 30305
Corpay Inc is a corporate payments company that helps businesses and consumers manage and pay their expenses. Its suite of modern payment solutions helps customers manage vehicle-related expenses, lodging expenses, and corporate payments. Its reportable segments are; Vehicle Payments, Corporate Payments, Lodging Payments, and Other. The group's geographic areas are the United States, Brazil, the United Kingdom, and Other.
Executives
Richard Macchia director C/O INTERNET SECURITY SYSTEMS INC, 6303 BARFIELD RD, ATLANTA GA 30328
Alan King officer: President UK and Aust/NewZea 5445 TRIANGLE PARKWAY, NORCROSS GA 30092
Alissa B Vickery officer: Chief Accounting Officer 3280 PEACHTREE ROAD, SUITE 2400, ATLANTA GA 30305
Armando Lins Netto officer: CEO Brazil 5455 TRIANGLE PARKWAY, NORCROSS GA 30092
Joseph W Farrelly director 5445 TRIANGLE PARKWAY, NORCROSS GA 30092
Ronald Clarke director, officer: CEO & President 5445 TRIANGLE PARKWAY, NORCROSS GA 30092
Gerald C Throop director C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD, MINNEAPOLIS MN 55425
Thomas E Panther officer: Chief Financial Officer 10 GLENLAKE PARKWAY, SOUTH TOWER, SUITE 950, ATLANTA GA 30328
Rahul Gupta director 255 FISERV DRIVE, BROOKFIELD WI 53045
Annabelle G Bexiga director 1075 JORDAN CREEK PARKWAY, SUITE 300, WEST DES MOINES IA 50266
Eric Dey officer: CFO & Secretary 655 ENGINEERING DRIVE, SUITE 300, NORCROSS GA 30092
Jones Archie L Jr. director 3280 PEACHTREE ROAD, ATLANTA GA 30305
Alexey Gavrilenya officer: President East/Central Europe 5445 TRIANGLE PARKWAY, NORCROSS GA 30092
David J Krantz officer: Group President, NA Fuel 5445 TRIANGLE PARKWAY, SUITE 400, PEACHTREE CORNERS 2Q 30092
Hala G Moddelmog director