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MLNK (MeridianLink) Degree of Operating Leverage : -10.56 (As of Mar. 2025)


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What is MeridianLink Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. MeridianLink's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -10.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MLNK's Degree of Operating Leverage is ranked better than
88.86% of 2666 companies
in the Software industry
Industry Median: 0.785 vs MLNK: -10.56

MeridianLink Degree of Operating Leverage Historical Data

The historical data trend for MeridianLink'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.

MeridianLink Degree of Operating Leverage Chart

MeridianLink Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 4.08 -1.14 0.90 -6.29 -12.24

MeridianLink 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 6.71 22.20 9.73 -12.24 -10.56

Competitive Comparison of MeridianLink's Degree of Operating Leverage

For the Software - Application subindustry, MeridianLink'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.


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

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

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


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MeridianLink Degree of Operating Leverage Calculation

MeridianLink'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
=( 9.896 (Mar. 2025) / 21.704 (Mar. 2024) - 1 )/( 319.97 (Mar. 2025) / 304.298 (Mar. 2024) - 1 )
=-0.544/0.0515
=-10.56***

* 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.


MeridianLink  (NYSE:MLNK) 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.


MeridianLink Degree of Operating Leverage Related Terms

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


MeridianLink Business Description

Industry
Traded in Other Exchanges
N/A
Address
3560 Hyland Avenue, Suite 200, Costa Mesa, CA, USA, 92626
MeridianLink Inc is a cloud-based software solution for financial institutions, including banks, credit unions, mortgage lenders, specialty lending providers, and consumer reporting agencies. It generates maximum revenue from Lending Software Solutions.
Executives
Nicolaas Vlok director, officer: Chief Executive Officer MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Timothy Nguyen director, officer: Chief Strategy Officer PROJECT ANGEL PARENT, LLC, 1600 SUNFLOWER AVENUE, SUITE #200, COSTA MESA CA 92626
Thoma Bravo Discover Fund, L.p. 10 percent owner 300 NORTH LASALLE STREET, SUITE 4350, CHICAGO IL 60654
Chris Maloof officer: President, Go To Market MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Sean W Blitchok officer: Chief Financial Officer MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Edward H Mcdermott director 60 E. SIR FRANCIS DRAKE BLVD., SUITE 300, LARKSPUR CA 94939
Cowan Cody director MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Mark Sachleben director C/O NEW RELIC, INC., 188 SPEAR STREET, STE. 1200, SAN FRANCISCO CA 94105
Duston Williams director C/O NUTANIX, INC., 1740 TECHNOLOGY DRIVE, SUITE 150, SAN JOSE CA 95110
Alan R. Arnold officer: Chief Operating Officer MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Yael Zheng director 345 ENCINAL STREET, SANTA CRUZ CA 95060
Reema Poddar director 1600 SUNFLOWER AVENUE, #200, COSTA MESA CA 92626
Paul Andrew Zuber director C/O HOULIHAN LOKEY, INC., 10250 CONSTELLATION BLVD., 5TH FLOOR, LOS ANGELES CA 90067
Chad H. Martin officer: Chief Financial Officer MERIDIANLINK, INC., 3560 HYLAND AVENUE, SUITE 200, COSTA MESA CA 92626
Arthur J. Rohde director PROJECT ANGEL PARENT, LLC, 1600 SUNFLOWER AVENUE, SUITE #200, COSTA MESA CA 92626