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QTTOY (Qutoutiao) Degree of Operating Leverage : -65.10 (As of Dec. 2024)


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What is Qutoutiao Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Qutoutiao's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -65.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

QTTOY's Degree of Operating Leverage is ranked better than
95.79% of 546 companies
in the Interactive Media industry
Industry Median: 1.015 vs QTTOY: -65.10

Qutoutiao Degree of Operating Leverage Historical Data

The historical data trend for Qutoutiao'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.

Qutoutiao Degree of Operating Leverage Chart

Qutoutiao Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -32.16 -0.97 0.86 3.04 -65.10

Qutoutiao Semi-Annual Data
Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only -32.16 -0.97 0.86 3.04 -65.10

Competitive Comparison of Qutoutiao's Degree of Operating Leverage

For the Internet Content & Information subindustry, Qutoutiao'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.


Qutoutiao's Degree of Operating Leverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Qutoutiao's Degree of Operating Leverage distribution charts can be found below:

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


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Qutoutiao Degree of Operating Leverage Calculation

Qutoutiao's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 4.624 (Dec. 2024) / -0.216 (Dec. 2023) - 1 )/( 140.356 (Dec. 2024) / 104.417 (Dec. 2023) - 1 )
=-22.4074/0.3442
=-65.10***

* 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.


Qutoutiao  (OTCPK:QTTOY) 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.


Qutoutiao Degree of Operating Leverage Related Terms

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Qutoutiao Business Description

Traded in Other Exchanges
N/A
Address
519 Yi De Road, Building No. 2, Shanghai Pudong Software Park, Pudong New Area, Shanghai, CHN, 200124
Qutoutiao Inc is a mobile content platform company in China. Its flagship mobile application, Qutoutiao, aggregates articles and short videos from professional media and freelancers and presents customized feeds to users. It has also launched a mobile literature application, Midu Novels, which offers users free literature supported by advertising. The mobile literature applications, Midu Novels, and Midu Lite, source content from traditional PC-based online literature platforms, which provide a license to publish their literature content on Midu Novels for a fee and offer pieces of literature. The company generates revenue by providing advertising and marketing services.

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