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SGPYY (Sage Group (The)) Degree of Operating Leverage : 6.47 (As of Sep. 2024)


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What is Sage Group (The) Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sage Group (The)'s Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 6.47. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Sage Group (The)'s Degree of Operating Leverage or its related term are showing as below:

SGPYY's Degree of Operating Leverage is ranked worse than
83.11% of 2671 companies
in the Software industry
Industry Median: 0.81 vs SGPYY: 6.47

Sage Group (The) Degree of Operating Leverage Historical Data

The historical data trend for Sage Group (The)'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.

Sage Group (The) Degree of Operating Leverage Chart

Sage Group (The) Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.81 2.42 -0.20 -0.92 6.47

Sage Group (The) Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 -0.20 -0.87 -0.92 2.82 6.47

Competitive Comparison of Sage Group (The)'s Degree of Operating Leverage

For the Software - Application subindustry, Sage Group (The)'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.


Sage Group (The)'s Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Sage Group (The)'s Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Sage Group (The)'s Degree of Operating Leverage falls into.


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Sage Group (The) Degree of Operating Leverage Calculation

Sage Group (The)'s Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 620.37 (Sep. 2024) / 403.465 (Sep. 2023) - 1 )/( 3084.656 (Sep. 2024) / 2702.97 (Sep. 2023) - 1 )
=0.5376/0.1412
=3.81***

* 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.


Sage Group (The)  (OTCPK:SGPYY) 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.


Sage Group (The) Degree of Operating Leverage Related Terms

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Sage Group (The) Business Description

Traded in Other Exchanges
Address
C23 - 5 & 6 Cobalt Park Way, Cobalt Park, Newcastle upon Tyne, GBR, NE28 9EJ
The Sage Group is a U.K.-based provider of accounting and enterprise resource planning, or ERP, software, predominantly to customers in the U.S. and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud connected and cloud native products, sold via software-as-a-service, or SaaS, contracts. Sage's main cloud native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.