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INOD (Innodata) Degree of Operating Leverage : 6.99 (As of Mar. 2025)


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What is Innodata Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Innodata's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.99. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

INOD's Degree of Operating Leverage is ranked worse than
83.62% of 2668 companies
in the Software industry
Industry Median: 0.78 vs INOD: 6.99

Innodata Degree of Operating Leverage Historical Data

The historical data trend for Innodata'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.

Innodata Degree of Operating Leverage Chart

Innodata 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 -52.46 -12.13 40.31 -10.47 78.32

Innodata 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 -5.82 -3.97 -7.64 78.32 6.99

Competitive Comparison of Innodata's Degree of Operating Leverage

For the Information Technology Services subindustry, Innodata'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.


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

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

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


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Innodata Degree of Operating Leverage Calculation

Innodata'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
=( 31.278 (Mar. 2025) / 3.48 (Mar. 2024) - 1 )/( 202.301 (Mar. 2025) / 94.44 (Mar. 2024) - 1 )
=7.9879/1.1421
=6.99***

* 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.


Innodata  (NAS:INOD) 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.


Innodata Degree of Operating Leverage Related Terms

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


Innodata Business Description

Industry
Traded in Other Exchanges
Address
55 Challenger Road, Ridgefield Park, NJ, USA, 07660
Innodata Inc is a data engineering company. It is helping companies deploy and integrate AI into their operations and products and providing AI-enabled industry platforms. The Company's operations are classified in three reporting segments: Digital Data Solutions (DDS), Synodex and Agility. Key revenue is generated from DDS segment provides AI data preparation services, collecting or creating training data, annotating training data, and training AI algorithms for its customers, and AI model deployment and integration. It also provides a range of data engineering support services including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management.
Executives
Louise C Forlenza director 55 CHALLENGER ROAD, RIDGEFIELD PARK NJ 07660
Ashok Mishra officer: Vice President, Project Deliv C/O INNODATA ISOGEN, INC., THREE UNIVERSITY PLAZA, HACKENSACK NJ 07601
Stewart R Massey director 3 UNIVERSITY PLAZA, SUITE 506, HACKENSACK NJ 07601
Nauman Sabeeh Toor 10 percent owner C/O INNODATA INC., 55 CHALLENGER ROAD, SUITE 202, RIDGEFIELD PARK NJ 07660
Marissa B Espineli officer: Interim CFO 55 CHALLENGER ROAD, SUITE 202, RIDGEFIELD PARK NJ 07660
Jack Abuhoff director, officer: Chairman, CEO, President THREE UNIVERSITY PLAZA, HACKENSACK NJ 07601
Mark A Spelker officer: EVP & Chief Financial Officer 55 CHALLENGER ROAD, SUITE 202, RIDGEFIELD PARK NJ 07660
David B Atkinson director C/O INNODATA INC., 55 CHALLENGER ROAD, RIDGEFIELD PARK NJ 07660
Luzich Partners Llc 10 percent owner 5055 W PATRICK LN, SUITE 104, LAS VEGAS NV 89118
Robert Michael O'connor officer: Chief Financial Officer 53 SORREL RUN, MT. LAUREL NJ 08054
Douglas J Manoni director C/O INNODATA INC, 55 CHALLENGER ROAD, RIDGEFIELD PARK NJ 07660
Brian E Kardon director C/O INNODATA INC, 55 CHALLENGER ROAD, RIDGEFIELD PARK NJ 07660
Rajat Jain officer: See Remarks C/O INNODATA INC., 55 CHALLENGER ROAD, RIDGEFIELD PARK NJ 07660
Michael J. Opat director C/O 3 UNIVERSITY PLAZA, SUITE 506, HACKENSACK NJ 07601
Andargachew S Zelleke director C/O CAMBRIDGE BANCORP, 1336 MASSACHUSETTS AVENUE, CAMBRIDGE MA 02138