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MQ (Marqeta) Degree of Operating Leverage : 12.18 (As of Mar. 2025)


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What is Marqeta Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Marqeta's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 12.18. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MQ's Degree of Operating Leverage is ranked worse than
88.31% of 2668 companies
in the Software industry
Industry Median: 0.83 vs MQ: 12.18

Marqeta Degree of Operating Leverage Historical Data

The historical data trend for Marqeta'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.

Marqeta Degree of Operating Leverage Chart

Marqeta Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.19 3.12 0.66 -3.62 3.65

Marqeta 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 0.04 1.67 2.37 3.65 12.18

Competitive Comparison of Marqeta's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Marqeta'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.


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

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

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


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Marqeta Degree of Operating Leverage Calculation

Marqeta'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
=( 6.848 (Mar. 2025) / -245.435 (Mar. 2024) - 1 )/( 528.1 (Mar. 2025) / 576.796 (Mar. 2024) - 1 )
=-1.0279/-0.0844
=12.18***

* 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.


Marqeta  (NAS:MQ) 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.


Marqeta Degree of Operating Leverage Related Terms

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


Marqeta Business Description

Industry
Traded in Other Exchanges
Address
180 Grand Avenue, 6th Floor, Oakland, CA, USA, 94612
Headquartered in Oakland, California, and founded in 2010, Marqeta provides its clients with a card-issuing platform that offers the infrastructure and tools necessary to offer digital, physical, and tokenized payment options without the need for a traditional bank. The company's open APIs are designed to allow third parties like DoorDash, Klarna, and Block to rapidly develop and deploy innovative card-based products and payment services without the need to develop the underlying technology. The company generates revenue primarily through processing and ATM fees for cards issued on its platform.
Executives
Martha Cummings director C/O MARQETA, INC., 180 GRAND AVE., FLR 6, OAKLAND CA 94612
Randall F. Kern officer: Chief Technology Officer C/O MARQETA, INC., 180 GRAND AVE., FLR 6, OAKLAND CA 94612
Godfrey Sullivan director SPLUNK INC., 250 BRANNAN STREET, SAN FRANCISCO CA 94107
Judson C Linville director 200 VESEY STREET, NEW YORK NY 10285
Najuma Atkinson director C/O HASBRO, INC., 1011 NEWPORT AVE, PAWTUCKET RI 02861
Crystal Sumner officer: See Remarks 415 KEARNY STREET, SAN FRANCISCO CA 94108
Todd Pollak officer: Chief Revenue Officer 180 GRAND AVENUE, 6TH FLOOR, OAKLAND CA 94612
Simon Khalaf director, officer: Chief Executive Officer 180 GRAND AVENUE, 6TH FLOOR, OAKLAND CA 94612
Srikiran Prasad director 180 GRAND AVENUE, 6TH FLOOR, OAKLAND CA 94612
Seth R Weissman officer: See Remarks 3055 CLEARVIEW WAY, SAN MATEO CA 94402
Michael Milotich officer: Chief Financial Officer 180 GRAND AVENUE, 6TH FLOOR, OAKLAND CA 94612
83north Ii Limited Partnership 10 percent owner 10 ABBA EBAN BOULEVARD, BUILDING C, 9TH FLOOR, HERZLIYA PITUACH L3 46733
Iconiq Strategic Partners Iii, L.p. 10 percent owner 394 PACIFIC AVENUE, 2ND FLOOR, SAN FRANCISCO CA 94111
Vidya Peters officer: Chief Marketing Officer C/O MARQETA, INC., 180 GRAND AVE., FLR 6, OAKLAND CA 94612
Amy Chang director 2100 SEAPORT BLVD., C/O INFORMATICA CORPORATION, REDWOOD CITY CA 94063