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NXTT (Next Technology Holding) Degree of Operating Leverage : 3.22 (As of Mar. 2025)


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What is Next Technology Holding Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Next Technology Holding's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.22. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NXTT's Degree of Operating Leverage is ranked worse than
74.58% of 2659 companies
in the Software industry
Industry Median: 0.79 vs NXTT: 3.22

Next Technology Holding Degree of Operating Leverage Historical Data

The historical data trend for Next Technology Holding'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.

Next Technology Holding Degree of Operating Leverage Chart

Next Technology Holding Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial - 0.46 2.69 2.63 3.52

Next Technology Holding 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 -1.10 - 16.61 3.52 3.22

Competitive Comparison of Next Technology Holding's Degree of Operating Leverage

For the Software - Application subindustry, Next Technology Holding'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.


Next Technology Holding's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Next Technology Holding Degree of Operating Leverage Calculation

Next Technology Holding'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
=( -0.137 (Mar. 2025) / -1.401 (Mar. 2024) - 1 )/( 1.8 (Mar. 2025) / 2.5 (Mar. 2024) - 1 )
=-0.9022/-0.28
=3.22***

* 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.


Next Technology Holding  (NAS:NXTT) 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.


Next Technology Holding Degree of Operating Leverage Related Terms

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Next Technology Holding Business Description

Traded in Other Exchanges
N/A
Address
Qianhai Premier Finance Centre Unit 2, Room 519, 5th floor, Block T3, Guiwan Area, Nanshan District, Shenzhen, CHN, 100020
Next Technology Holding Inc pursues two corporate strategies. One business strategy is to continue providing software development services, and the other strategy is to acquire and hold Bitcoin. It provides AI-enabled software development services to its customers, which include developing, designing, and implementing various SAAS software solutions for businesses of all types, including industrial and other businesses. Its bitcoin acquisition strategy generally involves acquiring bitcoin with its liquid assets that exceed working capital requirements, and from time to time, subject to market conditions, issuing debt or equity securities or engaging in other capital raising transactions to use the proceeds to purchase bitcoin.
Executives
Biming Guo director NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, BEIJING F4 100020
Kean Tat Che director, officer: CFO and Executive Director NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Yuxing Ye director NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Donghui Wang director NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Ning Qin director NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Pijun Liu director, 10 percent owner, officer: CEO and Executive Director NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Zhuo Li director, officer: COO and Executive Director NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Daxue Li director NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Zheng Dai director, 10 percent owner, officer: Chairman and Exec. Director NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000
Hung Fai Choi director NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000