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ETWO (E2open Parent Holdings) Degree of Operating Leverage : 10.94 (As of Feb. 2025)


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What is E2open Parent Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. E2open Parent Holdings's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 10.94. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for E2open Parent Holdings's Degree of Operating Leverage or its related term are showing as below:

ETWO's Degree of Operating Leverage is ranked worse than
87.47% of 2666 companies
in the Software industry
Industry Median: 0.785 vs ETWO: 10.94

E2open Parent Holdings Degree of Operating Leverage Historical Data

The historical data trend for E2open Parent 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.

E2open Parent Holdings Degree of Operating Leverage Chart

E2open Parent Holdings Annual Data
Trend Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25
Degree of Operating Leverage
Get a 7-Day Free Trial - - 7.13 -11.21 10.94

E2open Parent Holdings Quarterly Data
Jan20 Jun20 Sep20 Dec20 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 -11.21 9.72 0.70 16.28 10.94

Competitive Comparison of E2open Parent Holdings's Degree of Operating Leverage

For the Software - Application subindustry, E2open Parent 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.


E2open Parent Holdings's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, E2open Parent Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where E2open Parent Holdings's Degree of Operating Leverage falls into.


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E2open Parent Holdings Degree of Operating Leverage Calculation

E2open Parent Holdings's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -625.279 (Feb. 2025) / -1164.995 (Feb. 2024) - 1 )/( 607.688 (Feb. 2025) / 634.554 (Feb. 2024) - 1 )
=-0.4633/-0.0423
=10.94***

* 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.


E2open Parent Holdings  (NYSE:ETWO) 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.


E2open Parent Holdings Degree of Operating Leverage Related Terms

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E2open Parent Holdings Business Description

Traded in Other Exchanges
N/A
Address
14135 Midway Road, Suite G300, Addison, TX, USA, 75001
E2open Parent Holdings Inc is an end-to-end and cloud-based supply chain management SaaS platform. The company's software combines networks, data, and applications to provide a deeply embedded, mission-critical platform that allows customers to optimize the supply chain across channel shaping, business planning, logistics, trade, manufacturing, and supply management. The Group has one reportable segment consisting of cloud-based, end-to-end SCM software. Geographically, the company operates in the Americas, Europe, and Asia Pacific, out of which the majority revenue is from the Americas.
Executives
Neuberger Berman Group Llc 10 percent owner, other: See remarks. 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104
Andrew M Appel director, officer: Interim CEO C/O AON CORPORATE LAW DEPT, 200 EAST RANDOLPH ST, 8TH FL, CHICAGO IL 60601
Michael Farlekas director, officer: Chief Executive Officer 9600 GREAT HILLS TRAIL, SUITE 300E, AUSTIN TX 78759
Gregory Randolph officer: Chief Commercial Officer C/O E2OPEN PARENT HOLDINGS INC., 9600 GREAT HILLS TRAIL, SUITE 300E, AUSTIN TX 78759
Jennifer S Grafton officer: General Counsel and Secretary 9540 SOUTH MAROON CIRCLE, SUITE 200, ENGLEWOOD CO 80112
Peter Hantman officer: Chief Operating Officer C/O E2OPEN, INC., 4100 EAST THIRD AVENUE, SUITE 400, FOSTER CITY CA 94404
Marje Armstrong officer: Chief Financial Officer 9600 GREAT HILLS TRAIL, #300E, AUSTIN TX 78759
Eva F. Huston director 9 WEST 20TH STREET, 9TH FLOOR, NEW YORK NY 10011
Jarett Janik officer: Chief Financial Officer 9600 GREAT HILLS TRAIL, SUITE 300E, AUSTIN TX 78759
Francisco Partners Parallel Fund Iii (cayman), L.p. 10 percent owner ONE LETTERMAN DRIVE BUILDING C, SUITE 410, SAN FRANCISCO CA 94129
Chinh Chu director THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154
Deep Shah director 5 WILTON ROAD, 2ND FLOOR, LONDON X0 SW1V 1AN
David Jeffrey Kenneson officer: Sector President 9600 GREAT HILLS TRAIL #300E, AUSTIN TX 78759
Martin Fichtner director 101 CALIFORNIA STREET, SUITE 3700, SAN FRANCISCO CA 94111
Ronald P Kubera officer: Sector President 9715 KEY WEST AVENUE, ROCKVILLE MD 20850