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MSGM (Motorsport Games) Degree of Operating Leverage : 10.12 (As of Mar. 2025)


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What is Motorsport Games Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Motorsport Games's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 10.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MSGM's Degree of Operating Leverage is ranked worse than
85.64% of 550 companies
in the Interactive Media industry
Industry Median: 0.95 vs MSGM: 10.12

Motorsport Games Degree of Operating Leverage Historical Data

The historical data trend for Motorsport Games'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.

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Motorsport Games Degree of Operating Leverage Chart

Motorsport Games Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -1.66 1,331.77 -0.24 1.88 -3.04

Motorsport Games 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 9.92 76.72 21.39 -3.04 10.12

Competitive Comparison of Motorsport Games's Degree of Operating Leverage

For the Electronic Gaming & Multimedia subindustry, Motorsport Games'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.


Motorsport Games's Degree of Operating Leverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Motorsport Games's Degree of Operating Leverage distribution charts can be found below:

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


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Motorsport Games Degree of Operating Leverage Calculation

Motorsport Games'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
=( -0.239 (Mar. 2025) / -10.143 (Mar. 2024) - 1 )/( 7.417 (Mar. 2025) / 8.209 (Mar. 2024) - 1 )
=-0.9764/-0.0965
=10.12***

* 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.


Motorsport Games  (NAS:MSGM) 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.


Motorsport Games Degree of Operating Leverage Related Terms

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Motorsport Games Business Description

Traded in Other Exchanges
N/A
Address
5972 NE 4th Avenue, Miami, FL, USA, 33137
Motorsport Games Inc is a motorsport network company that combines engaging video games with esports competitions and content for racing fans and gamers around the globe. The company has its reportable segments into the development and publishing of interactive racing video games, entertainment content and services, and the organization and facilitation of esports tournaments, competitions, and events for licensed racing games as well as on behalf of third-party video game racing series and other video game publishers. The majority of the revenue is earned from Gaming.
Executives
Mike Zoi 10 percent owner 12100 NE 16TH AVENUE, #210, NORTH MIAMI FL 33161
Navtej Singh Sunner director 115 OVERSLADE LANE, RUGBY X0 CV226EE
Andrew P. Jacobson director 3825 N. PAULINA STREET, CHICAGO IL 60613
John Delta officer: Interim CFO 8800 HSC PARKWAY, BRYAN TX 77807
Peter R Moore director 200 DOMAIN DRIVE, STRATHAM NH 03885
Jonathan New officer: Chief Financial Officer 12100 NE 16TH AVENUE, #210, NORTH MIAMI FL 33161
Francesco Piovanetti director CITY VIEW PLAZA I SUITE 800, CARR. 165KM, 1.2, GUAYNABO PR 00968
Dmitry Kozko director, officer: Chief Executive Officer 1450 SOUTH MIAMI AVENUE, MIAMI FL 33130
Neil T Anderson director 125 BROAD STREET, 28TH FLOOR, NEW YORK NY 10004
Rob Dyrdek director 3130 WILSHIRE BLVD., SUITE 600, SANTA MONICA CA 90404
Stephen Hood officer: President SILVERSTONE INNOVATION CENTRE, SILVERSTONE X0 NN12 8GX
James William Allen director 1 ETON STREET,, MOTORSPORT NETWORK, RICHMOND, LONDON X0 TW9 1AG
Motorsport Network, Llc 10 percent owner 5972 NE 4TH AVENUE, MIAMI FL 33137