GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Crexendo Inc (NAS:CXDO) » Definitions » Degree of Operating Leverage

CXDO (Crexendo) Degree of Operating Leverage : 3.30 (As of Mar. 2025)


View and export this data going back to 1998. Start your Free Trial

What is Crexendo Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Crexendo's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.30. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CXDO's Degree of Operating Leverage is ranked worse than
65.03% of 366 companies
in the Telecommunication Services industry
Industry Median: 1.44 vs CXDO: 3.30

Crexendo Degree of Operating Leverage Historical Data

The historical data trend for Crexendo'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.

Crexendo Degree of Operating Leverage Chart

Crexendo 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 5.23 -3.40 34.95 -2.39 -97.22

Crexendo 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 -3.36 -4.38 -6.35 -97.22 3.30

Competitive Comparison of Crexendo's Degree of Operating Leverage

For the Telecom Services subindustry, Crexendo'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.


Crexendo's Degree of Operating Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Crexendo's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Crexendo Degree of Operating Leverage Calculation

Crexendo'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
=( 2.681 (Mar. 2025) / 1.841 (Mar. 2024) - 1 )/( 62.609 (Mar. 2025) / 54.994 (Mar. 2024) - 1 )
=0.4563/0.1385
=3.30***

* 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.


Crexendo  (NAS:CXDO) 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.


Crexendo Degree of Operating Leverage Related Terms

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


Crexendo Business Description

Traded in Other Exchanges
N/A
Address
1225 West Washington Street, Tempe, AZ, USA, 85288
Crexendo Inc is a provider of cloud communications, UCaaS, call centers, collaboration services, and other cloud business services. The company operates through two segments: Cloud telecommunications and Software Solutions. Its cloud telecommunications segment offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over any high-speed Internet connection. The Software Solutions segment is involved in revenue generation from software licenses, software maintenance support, and professional services. It generates subscription and maintenance support revenue from customer support and other supportive services. The company offers warranties on its products. It derives a majority of its revenue from the Cloud telecommunications segment.
Executives
David Tzat-kin Wang officer: Chief Technology Officer 1615 S 52ND ST, TEMPE AZ 85281
Anand Buch officer: Chief Strategy Officer 1615 S 52ND ST, TEMPE AZ 85281
Douglas Walter Gaylor officer: Chief Operating Officer 1615 SOUTH 52ND STREET, TEMPE AZ 85281
Ron Vincent officer: Chief Financial Officer 1615 SOUTH 52ND STREET, TEMPE AZ 85281
Jeffrey G Korn officer: Chief Legal Officer 1615 SOUTH 52ND STREET, TEMPE AZ 85281
Jon Brinton officer: Chief Revenue Officer 350 LEGGET DRIVE, OTTAWA A5 K2K 2W7
Anil K. Puri director 1615 SOUTH 52ND STREET, TEMPE AZ 85281
Steven G Mihaylo 10 percent owner 1615 SOUTH 52ND STREET, TEMPE AZ 85281
Jeffrey Parr Bash director 11 AMY DRIVE, WESTFIELD NJ 07090
Todd Andrew Goergen director 1615 SOUTH 52ND STREET, TEMPE AZ 85281
David Roy Williams director PO BOX 7019, INCLINE VILLAGE NV 89450
Jonathan Richard Erickson officer: Chief Financial Officer 1615 SOUTH 52ND STREET, TEMPE AZ 85281
Satish Bhagavatula officer: Chief Technology Officer 1615 SOUTH 52ND STREET, TEMPE AZ 85281
David Lynn Rosenvall officer: Chief Technology Officer 754 E TECHNOLOGY AVE, OREM UT 84097
Clint Sanderson other: Sr. VP -Storesonline 1303 NORTH RESEARCH WAY, OREM X1 84097