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HCKT (The Hackett Group) Degree of Operating Leverage : -6.15 (As of Mar. 2025)


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What is The Hackett Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. The Hackett Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -6.15. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HCKT's Degree of Operating Leverage is ranked better than
84.96% of 2666 companies
in the Software industry
Industry Median: 0.785 vs HCKT: -6.15

The Hackett Group Degree of Operating Leverage Historical Data

The historical data trend for The Hackett Group'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.

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The Hackett Group Degree of Operating Leverage Chart

The Hackett Group 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 4.76 26.66 3.52 -11.17 -1.63

The Hackett Group 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 -1.46 -1.09 -1.39 -1.63 -6.15

Competitive Comparison of The Hackett Group's Degree of Operating Leverage

For the Information Technology Services subindustry, The Hackett Group'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.


The Hackett Group's Degree of Operating Leverage Distribution in the Software Industry

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

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


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The Hackett Group Degree of Operating Leverage Calculation

The Hackett Group'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
=( 37.466 (Mar. 2025) / 49.535 (Mar. 2024) - 1 )/( 314.533 (Mar. 2025) / 302.548 (Mar. 2024) - 1 )
=-0.2436/0.0396
=-6.15***

* 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.


The Hackett Group  (NAS:HCKT) 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.


The Hackett Group Degree of Operating Leverage Related Terms

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The Hackett Group Business Description

Industry
Traded in Other Exchanges
Address
1001 Brickell Bay Drive, Suite 3000, 30th Floor, Miami, FL, USA, 33131
The Hackett Group Inc is an IP platform-based Generative Artificial Intelligence (Gen AI) strategic consulting and executive advisory digital transformation firm. The Hackett Group provides dedicated expertise in Gen AI-enabled enterprise transformation services across the front, mid and back office areas, including its highly recognized Oracle, SAP, OneStream and Coupa implementation offerings. It operates in three segments Oracle Solutions, SAP Solutions, and Global S&BT. It generates the majority of its revenue from the Global S&BT segment in the United States.
Executives
Wix Alan T G director
Bofill Maria De Los Angeles director 15550 SW 54 STREET, MIAMI FL 33185-4144
Robert A Rivero director 1001 BRICKELL BAY DRIVE, SUITE 3000, MIAMI FL 33131
Richard N Hamlin director 1001 BRICKELL BAY DRIVE, STE 3000, MIAMI FL 33131
John R Harris director 2201 CEDEAR SPRINGS RD, SUITE 701, DALLAS TX 75201
Ted A Fernandez director, officer: Chairman and CEO
Roberto A Ramirez, officer: Chief Financial Officer ANSWERTHINK, INC., 1001 BRICKELL DRIVE, SUITE 3000, MIAMI FL 33131
David N Dungan director, officer: Vice Chairman and COO
Edwin A Huston director UNISYS CORP, UNISYS WAY, BLUE BELL PA 19424-0001
Terence M Graunke director, 10 percent owner 676 N. MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Paul G Yovovich 10 percent owner 676 NORTH MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Lake Capital Partners Lp 10 percent owner 676 N. MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Archstone Holdings Llc 10 percent owner
Lake Capital Investment Partners Lp 10 percent owner 676 N. MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Archstone Intermediate Holdings Llc 10 percent owner 676 North Michigan Avenue, Suite 3900, Chicago IL 60611