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NTRP (NextTrip) Degree of Operating Leverage : 1.76 (As of Feb. 2025)


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What is NextTrip Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. NextTrip's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 1.76. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NTRP's Degree of Operating Leverage is ranked worse than
57.73% of 809 companies
in the Travel & Leisure industry
Industry Median: 1.25 vs NTRP: 1.76

NextTrip Degree of Operating Leverage Historical Data

The historical data trend for NextTrip'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.

NextTrip Degree of Operating Leverage Chart

NextTrip Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Feb23 Feb24 Feb25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.40 -0.29 0.43 2.32 1.76

NextTrip Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Feb24 May24 Aug24 Nov24 Feb25
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 2.32 1.26 2.79 1.21 1.76

Competitive Comparison of NextTrip's Degree of Operating Leverage

For the Travel Services subindustry, NextTrip'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.


NextTrip's Degree of Operating Leverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, NextTrip's Degree of Operating Leverage distribution charts can be found below:

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


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NextTrip Degree of Operating Leverage Calculation

NextTrip's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -8.413 (Feb. 2025) / -7.247 (Feb. 2024) - 1 )/( 0.501 (Feb. 2025) / 0.459 (Feb. 2024) - 1 )
=0.1609/0.0915
=1.76***

* 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.


NextTrip  (NAS:NTRP) 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.


NextTrip Degree of Operating Leverage Related Terms

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


NextTrip Business Description

Traded in Other Exchanges
N/A
Address
3900 Paseo del Sol, Santa Fe, NM, USA, 87507
NextTrip Inc is a technology-driven platform delivering travel booking and travel media solutions. It provides individual and group travelers with vacations to popular and sought-after destinations in Mexico, the Caribbean, and across the world. NextTrip Media platform - Travel Magazine offers a social media platform for viewers to explore, educate, and share with friends their bucket list travel. The company is also launching an end-to-end content ecosystem that uses AI-assisted travel planning capturing advertising, building brand awareness, rewarding loyalty, and driving bookings.
Executives
Mark Ruport director, officer: Executive Chairman 5575 MARK DABLING BLVD, SUITE 100, COLORADO SPRINGS CO 80919
Stephan Kuehr officer: GM of European Operations LEONHARDYWEG 30, BERLIN 2M 10121
Jacob Brunsberg officer: Sr VP Product Mgt/Strat Rel 3900 PASEO DEL SOL, SANTA FE NM 87507
Carl I. Schwartz 10 percent owner 20155 N.E. 38TH COURT, UNIT 3104, AVENTURA FL 33180
Frank Orzechowski officer: CFO, PFO and PAO 3900 PASEO DEL SOL, SANTA FE NM 87507
Darren Beckett officer: Vice President of Engineering 3900 PASEO DEL SOL, SANTA FE NM 87507
Kent J Summers director 13 ONONDAGA LANE, MEDFIELD MA 02052
Mark Cola director, officer: President, CEO and COO 3900 PASEO DEL SOL, SANTA FE NM 87507
Nannette Toups officer: CFO, PFO and PAO C/O SIGMA LABS, INC., 3900 PASEO DEL SOL, SANTA FE NM 87507
Salvatore F Battinelli director 5 CLIFTON AVENUE, MARBLEHEAD MA 01945
Dennis Duitch director 150 E PALMETTO PARK ROAD, SUITE 510, BOCA RATON FL 33432
John Reynolds Rice director 3900 PASEO DEL SOL, SANTA FE NM 87507
Fisher Ronald Kenneth Jr officer: Vice President of Business Dev 3900 PASEO DEL SOL, SANTA FE NM 87507
Frank J Garofalo director 3900 PASEO DEL SOL, SANTA FE NM 87507
Amanda Cola officer: VP of Finance and Business Ops 3900 PASEO DEL SOL, SANTA FE NM 87507