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PRGS (Progress Software) Degree of Operating Leverage : 0.95 (As of Feb. 2025)


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What is Progress Software Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Progress Software's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 0.95. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PRGS's Degree of Operating Leverage is ranked worse than
53.41% of 2666 companies
in the Software industry
Industry Median: 0.785 vs PRGS: 0.95

Progress Software Degree of Operating Leverage Historical Data

The historical data trend for Progress Software'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.

Progress Software Degree of Operating Leverage Chart

Progress Software Annual Data
Trend Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.51 0.41 1.14 -1.11 1.69

Progress Software Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 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 -1.41 -0.72 0.78 1.69 0.95

Competitive Comparison of Progress Software's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Progress Software'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.


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

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

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


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Progress Software Degree of Operating Leverage Calculation

Progress Software'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
=( 123.056 (Feb. 2025) / 109.616 (Feb. 2024) - 1 )/( 806.739 (Feb. 2025) / 714.898 (Feb. 2024) - 1 )
=0.1226/0.1285
=0.95***

* 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.


Progress Software  (NAS:PRGS) 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.


Progress Software Degree of Operating Leverage Related Terms

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


Progress Software Business Description

Traded in Other Exchanges
Address
15 Wayside Road, Suite 400, Burlington, MA, USA, 01803
Progress Software Corporation provides software operate in one operating segment: software products for the development, deployment, and management of responsible, AI-powered applications and digital experiences. Following are products: Chef, Corticon, Data Direct, Developer Tools, Flowmon, Kemp LoadMaster, MarkLogic, MOVEit, OpenEdge, Semaphore, ShareFile, Sitefinity, WhatsUp Gold. Geographical regions include United States, Canada, EMEA, Latin America, and Asia Pacific.
Executives
Loren Jarrett officer: Chief Marketing Officer C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DR., BEDFORD MA 01730
Yufan Stephanie Wang officer: Chief Legal Officer C/O PROGRESS SOFTWARE CORPORATION, 15 WAYSIDE ROAD, SUITE 400, BURLINGTON MA 01803
Ian Pitt officer: Chief Information Officer C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
Domenic Lococo officer: Chief Accounting Officer C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
Anthony Folger officer: Chief Financial Officer C/O CARBONITE, INC., 177 HUNTINGTON AVENUE, BOSTON MA 02115
Sundar Subramanian officer: EVP/GM DevSecOps C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
Yogesh K Gupta director, officer: Chief Executive Officer C/O PROGRESS SOFTWARE CORPORATION, 15 WAYSIDE ROAD, SUITE 400, BURLINGTON MA 01803
Kathryn Kulikoski officer: CHIEF PEOPLE OFFICER C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
John Ainsworth officer: Senior Vice President C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DR., BEDFORD MA 01730
David Krall director C/O AVID TECHNOLOGY INC, ONE PARK WEST, TEWKSBURY MA 01876
Charles Francis Kane director 14 OAK PARK DRIVE, BEDFORD MA 01730
Jeremy Segal officer: Senior Vice President C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
Jennifer Ortiz officer: EVP, Corporate Marketing C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
John R Egan director 176 SOUTH ST., HOPKINTON MA 01748
Gary Quinn officer: Senior Vice President C/O COMPUTER ASSOCIATES INTER INC, ONE COMPUTER ASSOC PLAZA, ISLANDIA NY 11749