GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Nasdaq Inc (NAS:NDAQ) » Definitions » Degree of Operating Leverage

NDAQ (Nasdaq) Degree of Operating Leverage : 0.82 (As of Mar. 2025)


View and export this data going back to 2002. Start your Free Trial

What is Nasdaq Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Nasdaq's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NDAQ's Degree of Operating Leverage is ranked worse than
51.35% of 629 companies
in the Capital Markets industry
Industry Median: 0.75 vs NDAQ: 0.82

Nasdaq Degree of Operating Leverage Historical Data

The historical data trend for Nasdaq'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.

Nasdaq Degree of Operating Leverage Chart

Nasdaq Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.46 5.67 -0.56 -1.90 0.46

Nasdaq 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 -7.06 1.36 0.18 0.46 0.82

Competitive Comparison of Nasdaq's Degree of Operating Leverage

For the Financial Data & Stock Exchanges subindustry, Nasdaq'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.


Nasdaq's Degree of Operating Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Nasdaq's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Nasdaq Degree of Operating Leverage Calculation

Nasdaq'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
=( 2010 (Mar. 2025) / 1658 (Mar. 2024) - 1 )/( 7814 (Mar. 2025) / 6205 (Mar. 2024) - 1 )
=0.2123/0.2593
=0.82***

* 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.


Nasdaq  (NAS:NDAQ) 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.


Nasdaq Degree of Operating Leverage Related Terms

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


Nasdaq Business Description

Address
151 W. 42nd Street, New York, NY, USA, 10036
Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its trading business (about 22.5% of sales), the company sells market and financial data to investors, offers Nasdaq-branded indexes, and lists companies through its capital access segment (42.5%). Nasdaq's newest segment, financial technology, was primarily constructed through the acquisitions of Verafin and Adenza and has expanded the company into capital management, financial crime, and regulatory compliance software (35%) as the firm seeks to become a diversified technology company.
Executives
Bryan Everard Smith officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Bradley J Peterson officer: Executive Vice President ONE LIBERTY PLAZA, NEW YORK NY 10006
Tal Cohen officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Jeremy Skule officer: Executive Vice President ONE LIBERTY PLAZA, NEW YORK MD 20850
Alfred W Zollar director C/O LOTUS SOFTWARE, ONE ROGER STREET, CAMBRIDGE MA 02142
Pc Nelson Griggs officer: Executive Vice President ONE LIBERTY PLAZA, NEW YORK NY 10006
John Zecca officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Adenza Parent, Lp director, 10 percent owner ONE MARKET PLAZA, SPEAR TOWER, SUITE 2400, SAN FRANCISCO CA 94150
Borse Dubai Ltd 10 percent owner LEVEL 7, PRECINCT BLDG 5, GATE DISTRICT, PO BOX 506690, DUBAI INTL FINANCIAL CTR, DUBAI C0 00000
Spaht Paul Holden Jr. director 600 MONTGOMERY STREET, 20TH FLOOR, SAN FRANCISCO CA 94111
Thoma Bravo Ugp, Llc director, 10 percent owner 110 N. WACKER DRIVE, 32ND FLOOR, CHICAGO IL 60606
Ann M Dennison officer: Controller and Prin Acctg Ofcr ONE LIBERTY PLAZA, NEW YORK NY 10006
Johan Torgeby director 151 W. 42ND STREET, NEW YORK NY 10036
Jeffery W Yabuki director 255 FISERV DRIVE, BROOKFIELD WI 53045
Adena T Friedman officer: Executive Vice President 1801 K STREET, N.W., WASHINGTON DC 20006