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ISPR (Ispire Technology) Degree of Operating Leverage : -80.05 (As of Mar. 2025)


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What is Ispire Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ispire Technology's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -80.05. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ISPR's Degree of Operating Leverage is ranked better than
97.92% of 48 companies
in the Tobacco Products industry
Industry Median: 0.535 vs ISPR: -80.05

Ispire Technology Degree of Operating Leverage Historical Data

The historical data trend for Ispire Technology'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.

Ispire Technology Degree of Operating Leverage Chart

Ispire Technology Annual Data
Trend Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
- -3.27 0.34 6.70

Ispire Technology Quarterly Data
Jun21 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 2.65 6.70 26.67 31.28 -80.05

Competitive Comparison of Ispire Technology's Degree of Operating Leverage

For the Tobacco subindustry, Ispire Technology'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.


Ispire Technology's Degree of Operating Leverage Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Ispire Technology's Degree of Operating Leverage distribution charts can be found below:

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


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Ispire Technology Degree of Operating Leverage Calculation

Ispire Technology'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
=( -26.71 (Mar. 2025) / -11.333 (Mar. 2024) - 1 )/( 144.7 (Mar. 2025) / 147.195 (Mar. 2024) - 1 )
=1.3568/-0.017
=-80.05***

* 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.


Ispire Technology  (NAS:ISPR) 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.


Ispire Technology Degree of Operating Leverage Related Terms

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Ispire Technology Business Description

Traded in Other Exchanges
N/A
Address
19700 Magellan Drive, Los Angeles, CA, USA, 90502
Ispire Technology Inc is engaged in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. The company sells its cannabis vaping in the United States, Europe, Canada, and South Africa.
Executives
Daniel J. Machock officer: Chief Financial Officer 19700 MAGELLAN DRIVE, LOS ANGELESC CA 90502
Christopher Robert Burch director 19700 MAGELLAN DRIVE, LOS ANGELES CA 90502
Jeffrey Doiron officer: Chief Revenue Officer 3606 W MAGNOLIA BLVD, BURBANK CA 91505
John Fargis director 2000 S BAYSHORE DR, UNIT 20, MIAMI FL 33133
Joel Paritz director 204 MAIN STREET, FORT LEE NJ 07024
Lauren Stower officer: Chief Impact Officer 19700 MAGELLAN DRIVE, LOS ANGELES CA 90502
Brent Cox director 19700 MAGELLAN DRIVE, LOS ANGELES CA 90502
Ted Rouhani officer: Chief Operating Officer 19700 MAGELLAN DRIVE, LOS ANGELES CA 90502
Michael Xue Wang officer: CHIEF FINANCIAL OFFICER 19700 MAGELLAN DRIVE, LOS ANGELES CA 90502
Tuanfang Liu director, 10 percent owner, officer: CEO and Chairman 19700 MAGELLAN DRIVE, LOS ANGELES CA 90502
Jiangyan Zhu director 19700 MAGELLAN DRIVE, LOS ANGELES CA 90502
Pride Worldwide Investment Ltd 10 percent owner 14 JIANAN ROAD, TANGWEI FUYONG TOWN GUANGDONG PROVINCE, SHENZHEN F4 000000