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PRO (Pros Holdings) Degree of Operating Leverage : -11.02 (As of Mar. 2025)


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What is Pros Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pros Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -11.02. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PRO's Degree of Operating Leverage is ranked better than
88.97% of 2666 companies
in the Software industry
Industry Median: 0.78 vs PRO: -11.02

Pros Holdings Degree of Operating Leverage Historical Data

The historical data trend for Pros Holdings'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.

Pros Holdings Degree of Operating Leverage Chart

Pros Holdings 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 24.17 -48.30 -0.26 -3.43 -8.43

Pros Holdings 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 -3.70 -4.12 -7.32 -8.43 -11.02

Competitive Comparison of Pros Holdings's Degree of Operating Leverage

For the Software - Application subindustry, Pros Holdings'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.


Pros Holdings's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Pros Holdings Degree of Operating Leverage Calculation

Pros Holdings'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
=( -5.132 (Mar. 2025) / -42.049 (Mar. 2024) - 1 )/( 336.006 (Mar. 2025) / 311.214 (Mar. 2024) - 1 )
=-0.878/0.0797
=-11.02***

* 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.


Pros Holdings  (NYSE:PRO) 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.


Pros Holdings Degree of Operating Leverage Related Terms

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


Pros Holdings Business Description

Industry
Traded in Other Exchanges
Address
3200 Kirby Drive, Suite 600, Houston, TX, USA, 77098
Pros Holdings Inc provides software solutions that optimize shopping and selling experiences for both business-to-business and business-to-consumer companies across industry verticals in more than nearly 80 countries. Its PROS Platform is designed to help businesses create, optimize and market available offers and handle orders through both first- and third-party digital channels. The firm generates key revenue form the United States of America, Germany, The rest of Europe, Africa, Asia-Pacific, and Middle East regions.
Executives
Leland Jourdan director 3200 KIRBY DR., SUITE 600, HOUSTON TX 77098
Scott William Cook officer: Sr.VP,Chief Accounting Officer 3100 MAIN ST., SUITE 900, HOUSTON TX 77002
Andres Reiner officer: Senior VP Pricing Solutions 3100 MAIN STREET, SUITE 900, HOUSTON TX 77002
Stefan B Schulz officer: EVP and CFO 9625 W 76TH STREET, EDEN PRAIRIE MN 55344
Timothy V Williams director 3100 MAIN STREET, STE 900, HOUSTON TX 77002
Cynthia Johnson director 3200 KIRBY DR., SUITE 600, HOUSTON TX 77098
Greg Petersen director 3100 MAIN STREET, SUITE 900, HOUSTON TX 77002
Leslie J Rechan director 2207 BRIDGEPOINTE PARKWAY, SAN MATEO CA 94404
Roberto D Reiner officer: EVP, Chief Technology Officer 3100 MAIN ST., SUITE 900, HOUSTON TX 77002
Allessio John P. C. officer: EVP, Chief Customer Officer 3100 MAIN ST., SUITE 900, HOUSTON TX 77002
Catherine A Lesjak director GENERAL ELECTRIC COMPANY, ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Raja Hammoud director 3100 MAIN ST., SUITE 900, HOUSTON TX 77002
Penny Herscher director 1001 RIDDER PARK DRIVE, SAN JOSE CA 95131
Carlos Dominguez director C/O MEDIDATA SOLUTIONS, INC., 79 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10003
Ronald F Woestemeyer director, 10 percent owner, officer: EVP, Strategic Bus. Planning 3100 MAIN STREET, SUITE 900, HOUSTON TX 77002