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FPAY (FlexShopper) Degree of Operating Leverage : 3.40 (As of Dec. 2024)


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What is FlexShopper Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. FlexShopper's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 3.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FPAY's Degree of Operating Leverage is ranked worse than
72.77% of 999 companies
in the Business Services industry
Industry Median: 0.97 vs FPAY: 3.40

FlexShopper Degree of Operating Leverage Historical Data

The historical data trend for FlexShopper'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.

FlexShopper Degree of Operating Leverage Chart

FlexShopper 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 -0.28 4.15 3.59 19.56 3.40

FlexShopper Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 19.56 1.31 7.82 1.35 3.40

Competitive Comparison of FlexShopper's Degree of Operating Leverage

For the Rental & Leasing Services subindustry, FlexShopper'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.


FlexShopper's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, FlexShopper's Degree of Operating Leverage distribution charts can be found below:

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


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FlexShopper Degree of Operating Leverage Calculation

FlexShopper's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 22.779 (Dec. 2024) / 13.69 (Dec. 2023) - 1 )/( 139.801 (Dec. 2024) / 116.975 (Dec. 2023) - 1 )
=0.6639/0.1951
=3.40***

* 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.


FlexShopper  (NAS:FPAY) 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.


FlexShopper Degree of Operating Leverage Related Terms

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


FlexShopper Business Description

Traded in Other Exchanges
Address
901 Yamato Road, Suite 260, Boca Raton, FL, USA, 33431
FlexShopper Inc is a financial technology company engaged in providing certain types of durable goods to consumers on a lease-to-own basis and providing lease-to-own (LTO) terms to consumers of third-party retailers and e-tailers. Its products include electronics, computers, furniture, mattresses, cameras and camcorders, audio, musical instruments, health, fitness and sports, video games, homes, gardens and tools, appliances, and vacuums on a payment, lease basis. The firm generates a majority of its revenue by leasing its products. The company enables consumers utilizing its e-commerce marketplace to shop for brand-name electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis.
Executives
Howard Dvorkin director, 10 percent owner 6360 NW 5 WAY, FORT LAUDERDALE FL 33309
Heiser Harold Russell Jr. officer: CFO 2700 NORTH MILITARY TRAIL, SUITE 200, BOCA RATON FL 33431
John Davis officer: COO 2445 TECHNOLOGY FOREST BLVD., STE. 800, THE WOODLANDS TX 77381
T Scott King director 4100 HOLIDAY ST NW, CANTON OH 44718
House Richard R Jr officer: Chief Executive Officer C/O ATLANTICUS HOLDINGS CORP, FIVE CONCOURSE PARKWAY SUITE 300, ATLANTA GA 30328
Thomas O. Katz director C/O FLEXSHOPPER, INC., 901 YAMATO ROAD, SUITE 260, BOCA RATON FL 33431
James Douglas Allen director 2221 E. LAMAR BLVD. SUITE 790, ARLINGTON TX 76006
Brad Mitchell Bernstein director, 10 percent owner, officer: President C/O ANCHOR FUNDING SERVICES, INC., 10801 JOHNSTON ROAD SUITE 210, CHARLOTTE NC 28226
Sean Hinze director 650 NEWPORT CENTER DRIVE, NEWPORT BEACH CA 92660
Carl Pradelli director C/O DUANE READE INC, 440 9TH AVE, NEW YORK NY 10001
Ravi Radhakrishnan officer: Chief Risk Officer 2700 N. MILITARY TRAIL, SUITE 200, BOCA RATON FL 33431
Waterfall Asset Management, Llc 10 percent owner 1140 AVENUE OF THE AMERICAS, 7TH FLOOR, NEW YORK NY 10036
Katherine Verner director C/O PIMCO, 650 NEWPORT CENTER DRIVE, NEWPORT BEACH CA 92660
Daniel Ballen director 650 NEWPORT CENTER DRIVE C/O PIMCO, NEWPORT BEACH CA 92660
Pimco Bravo Fund Ii, L.p. 10 percent owner 840 NEWPORT CENTER DRIVE, SUITE 100, NEWPORT BEACH CA 92660