GURUFOCUS.COM » STOCK LIST » Technology » Software » Dynatrace Inc (NYSE:DT) » Definitions » Degree of Operating Leverage

DT (Dynatrace) Degree of Operating Leverage : 2.12 (As of Mar. 2025)


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

What is Dynatrace Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Dynatrace's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DT's Degree of Operating Leverage is ranked worse than
67.85% of 2666 companies
in the Software industry
Industry Median: 0.785 vs DT: 2.12

Dynatrace Degree of Operating Leverage Historical Data

The historical data trend for Dynatrace'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.

Dynatrace Degree of Operating Leverage Chart

Dynatrace Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -5.30 -0.36 0.57 1.63 2.12

Dynatrace 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 1.63 1.17 0.99 1.41 2.12

Competitive Comparison of Dynatrace's Degree of Operating Leverage

For the Software - Application subindustry, Dynatrace'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.


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

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

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


;
;

Dynatrace Degree of Operating Leverage Calculation

Dynatrace'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
=( 179.433 (Mar. 2025) / 128.4 (Mar. 2024) - 1 )/( 1698.683 (Mar. 2025) / 1430.53 (Mar. 2024) - 1 )
=0.3975/0.1875
=2.12***

* 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.


Dynatrace  (NYSE:DT) 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.


Dynatrace Degree of Operating Leverage Related Terms

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


Dynatrace Business Description

Industry
Traded in Other Exchanges
Address
1601 Trapelo Road, Suite 116, Waltham, MA, USA, 02451
Dynatrace is a cloud-native company that focuses on analyzing machine data. Its product portfolio, delivered as software as a service, allows a client to monitor and analyze its entire IT infrastructure. Dynatrace's platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to use it for a variety of applications throughout their businesses.
Executives
Rick M Mcconnell director, officer: Chief Executive Officer LATITUDE, 2121 TASMAN DRIVE, SANTA CLARA CA 4089887256
Dan Zugelder officer: SVP, Chief Revenue Officer DYNATRACE, INC., 1601 TRAPELO ROAD, SUITE 116, WALTHAM MA 02451
James M Benson officer: Chief Financial Officer C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Stephen J Lifshatz director C/O DYNATRACE HOLDINGS LLC, 1601 TRAPELO ROAD, SUITE 116, WALTHAM MA 02451
Bernd Greifeneder officer: SVP, Chief Technology Officer C/O DYNATRACE HOLDINGS LLC, 1601 TRAPELO ROAD, SUITE 116, WALTHAM MA 02451
Matthias Dollentz-scharer officer: Chief Customer Officer DYNATRACE, INC., 1601 TRAPELO ROAD, SUITE 116, WALTHAM MA 02451
Thoma Bravo Ugp, Llc 10 percent owner 110 N. WACKER DRIVE, 32ND FLOOR, CHICAGO IL 60606
Daniel S. Yates officer: SVP, Chief Accounting Officer DYNATRACE, INC., 1601 TRAPELO ROAD, SUITE 116, WALTHAM MA 02451
Amol Kulkarni director C/O DYNATRACE, INC., 1601 TRAPELO ROAD, SUITE 116, WALTHAM MA 02451
Alicia Allen officer: Chief Accounting Officer C/O DYNATRACE, INC., 1601 TRAPELO ROAD SUITE 116, WALTHAM MA 02451
Stephen J. Pace officer: SVP, Worldwide Sales C/O DYNATRACE HOLDINGS LLC, 1601 TRAPELO ROAD SUITE 116, WALTHAM MA 02451
Kevin C Burns officer: See Remarks C/O DYNATRACE HOLDINGS LLC, 1601 TRAPELO ROAD, SUITE 116, WALTHAM MA 02451
Paul Andrew Zuber director C/O HOULIHAN LOKEY, INC., 10250 CONSTELLATION BLVD., 5TH FLOOR, LOS ANGELES CA 90067
Ambika Gadre director C/O DYNATRACE, INC., 1601 TRAPELO ROAD SUITE 116, WALTHAM MA 02451
Siclen John Van director, officer: Chief Executive Officer C/O DYNATRACE HOLDINGS LLC, 1601 TRAPELO ROAD, SUITE 116, WALTHAM MA 02451