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Auction Technology Group (LSE:ATG) Degree of Operating Leverage : -48.83 (As of Mar. 2025)


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What is Auction Technology Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Auction Technology Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -48.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LSE:ATG's Degree of Operating Leverage is ranked better than
95.54% of 2668 companies
in the Software industry
Industry Median: 0.81 vs LSE:ATG: -48.83

Auction Technology Group Degree of Operating Leverage Historical Data

The historical data trend for Auction Technology 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.

* Premium members only.

Auction Technology Group Degree of Operating Leverage Chart

Auction Technology Group Annual Data
Trend Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial - - -4.18 0.69 -46.14

Auction Technology Group Semi-Annual Data
Sep18 Sep19 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.47 0.69 2.67 -46.14 -48.83

Competitive Comparison of Auction Technology Group's Degree of Operating Leverage

For the Software - Application subindustry, Auction Technology 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.


Auction Technology Group's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Auction Technology Group Degree of Operating Leverage Calculation

Auction Technology 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
=( 26.858 (Mar. 2025) / 19.89 (Mar. 2024) - 1 )/( 135.474 (Mar. 2025) / 136.453 (Mar. 2024) - 1 )
=0.3503/-0.0072
=-48.83***

* 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.


Auction Technology Group  (LSE:ATG) 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.


Auction Technology Group Degree of Operating Leverage Related Terms

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Auction Technology Group Business Description

Traded in Other Exchanges
Address
65 Southwark Street, The Harlequin Building, London, GBR, SE1 0HR
Auction Technology Group PLC is engaged in the provision of auction technology software and related services to auction houses and other customers. The goal of the company is to simplify and integrate multiple parts of the online auction process, from the cataloging of items to marketing, auction hosting, bidding, and recent payment solutions. The group has four segments namely Arts and Antiques, Industrial and Commercial, Auction services, and Content. The majority of revenue is generated from the Art & Antiques segment. Geographically the company serves the United Kingdom, Germany, and the USA, where the majority of revenue is generated from the USA.

Auction Technology Group Headlines

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