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RELY (Remitly Global) Degree of Operating Leverage : -3.16 (As of Mar. 2025)


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What is Remitly Global Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Remitly Global's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -3.16. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RELY's Degree of Operating Leverage is ranked better than
79.8% of 2668 companies
in the Software industry
Industry Median: 0.78 vs RELY: -3.16

Remitly Global Degree of Operating Leverage Historical Data

The historical data trend for Remitly Global'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.

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Remitly Global Degree of Operating Leverage Chart

Remitly Global Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.38 0.26 4.85 -0.04 -2.23

Remitly Global Quarterly Data
Dec19 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 -0.33 -0.20 -1.38 -2.23 -3.16

Competitive Comparison of Remitly Global's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Remitly Global'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.


Remitly Global's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Remitly Global Degree of Operating Leverage Calculation

Remitly Global'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
=( 8.544 (Mar. 2025) / -101.344 (Mar. 2024) - 1 )/( 1356.469 (Mar. 2025) / 1009.538 (Mar. 2024) - 1 )
=-1.0843/0.3437
=-3.16***

* 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.


Remitly Global  (NAS:RELY) 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.


Remitly Global Degree of Operating Leverage Related Terms

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


Remitly Global Business Description

Industry
Traded in Other Exchanges
N/A
Address
1111 Third Avenue, Suite 2100, Seattle, WA, USA, 98101
Remitly Global Inc provides integrated financial services to immigrants, including helping customers send money internationally in a quick, reliable, and more cost-effective manner by leveraging digital channels. It supports cross-border transmissions across the globe. The company's revenue is generated on transaction fees charged to customers and foreign exchange spreads between the foreign exchange rate offered to customers and the foreign exchange rate on the company's currency purchases.
Executives
Matthew B. Oppenheimer director, officer: Chief Executive Officer 1111 THIRD AVENUE, ST. 2100, C/O REMITLY GLOBAL, INC., SEATTLE WA 98101
Joshua Hug director, officer: Chief Operating Officer 1111 THIRD AVENUE, ST. 2100, C/O REMITLY GLOBAL, INC., SEATTLE WA 98101
Bora Chung director C/O BILL.COM HOLDINGS, INC., 1810 EMBARCADERO ROAD, PALO ALTO CA 94303
Naspers Ltd 10 percent owner NASPERS CENTRE PO BOX 2271, CAPETOWN 8000, SOUTH AFRICA T3 00000
Ankur Sinha officer: Chief Technology Officer C/O REMITLY GLOBAL, INC., 1111 3RD AVE., 21ST FLOOR, SEATTLE WA 98101
Rene Yoakum officer: EVP, Customer and Culture C/O REMITLY GLOBAL, INC., 1111 3RD AVE., 21ST FLOOR, SEATTLE WA 98101
Gail A Miller officer: Chief Accounting Officer C/O REMITLY GLOBAL, INC., 1111 3RD AVE., 21ST FLOOR, SEATTLE, WA 98101
Hemanth Munipalli officer: Chief Financial Officer C/O REMITLY GLOBAL, INC., 1111 THIRD AVENUE, SUITE 2100, SEATTLE WA 98101
Nigel W Morris director 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Phyllis J Campbell director C/O AIR TRANSPORT SERVICES GROUP, INC., 145 HUNTER DRIVE, WILMINGTON OH 45177
Ryno Blignaut director C/O XOOM CORPORATION, 100 BUSH STREET, SUITE 300, SAN FRANCISCO CA 94104
Stripes Iii, Lp 10 percent owner 402 WEST 13TH STREET, 4TH FLOOR, NEW YORK NY 10014
Stripes Gp Iii, Llc 10 percent owner 402 WEST 13TH STREET, NEW YORK NY 10014
Stripes Holdings, Llc 10 percent owner 402 WEST 13TH ST., 4TH FLOOR, NEW YORK NY 10014
Kenneth A Fox 10 percent owner