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HTCR (HeartCore Enterprises) Degree of Operating Leverage : -0.41 (As of Mar. 2025)


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What is HeartCore Enterprises Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. HeartCore Enterprises's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.41. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HTCR's Degree of Operating Leverage is ranked better than
66.73% of 2666 companies
in the Software industry
Industry Median: 0.785 vs HTCR: -0.41

HeartCore Enterprises Degree of Operating Leverage Historical Data

The historical data trend for HeartCore Enterprises'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.

HeartCore Enterprises Degree of Operating Leverage Chart

HeartCore Enterprises Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -4.83 -3.97 623.56 -0.18 0.19

HeartCore Enterprises Quarterly Data
Dec19 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 13.05 -87.39 -4.93 0.19 -0.41

Competitive Comparison of HeartCore Enterprises's Degree of Operating Leverage

For the Software - Application subindustry, HeartCore Enterprises'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.


HeartCore Enterprises's Degree of Operating Leverage Distribution in the Software Industry

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

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


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HeartCore Enterprises Degree of Operating Leverage Calculation

HeartCore Enterprises'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
=( -6.736 (Mar. 2025) / -8.878 (Mar. 2024) - 1 )/( 28.947 (Mar. 2025) / 18.158 (Mar. 2024) - 1 )
=-0.2413/0.5942
=-0.41***

* 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.


HeartCore Enterprises  (NAS:HTCR) 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.


HeartCore Enterprises Degree of Operating Leverage Related Terms

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HeartCore Enterprises Business Description

Traded in Other Exchanges
N/A
Address
1-2-33, Higashigotanda, Shinagawa-ku, Tokyo, JPN
HeartCore Enterprises Inc is a software development company. The company provides software through two business units. The first business unit includes a customer experience management business. The customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations that enable companies to attract and engage customers throughout the customer experience. It also provides education, services and support to help customers be successful with the CXM Platform. The second business unit, DX division, is a digital transformation business that provides customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises.
Executives
Keisuke Kuno officer: CX Division Vice President 2-10-1 HORINOUCHI, HACHIOJI-SHI, TOKYO M0 192-0355
Kimio Hosaka director, officer: Chief Operating Officer 2-16-2-312 OSHIAGE, SUMIDA-KU, TOKYO M0 131-0045
Sumitaka Yamamoto director, 10 percent owner, officer: Chairman,CEO & President 848 JORDAN AVE. #G, LOS ALTOS CA 94022
Ferdinand Groenewald director C/O MUSCLE MAKER, INC,, 2200 SPACE PARK DRIVE,SUITE 310, HOUSTON TX 77058
Qizhi Gao officer: Chief Financial Officer 1-8-17-302, SHITTE, TSURUMI-KU, YOKOHAMA-SHI, KANAGAWA M0 230-0003
Hidekazu Miyata officer: Chief Technical Officer 4-6-6-1106, KONAN, MINATO-KU, TOKYO M0 108-0075
Yuta Katai director 1-14-604 SUIDOUCHO,SHINJYUKU-KU, TOKYO M0 162-0811
Takeshi Omoto director 1-16-5 HIG A SHIG A OK A , MEGURO-KU, TOKYO M0 152-0021
Yoshitomo Yamano director 3-12-22-301, SENDAGAYA, SHIBUYA-KU, TOKYO M0 151-0051
Yuki Tan director 2-14-8, AZAMINOMINAMI, AOBA-KU, YOKOHAMA-SHI, KANGAWA M0 225-0012