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SKKY (Skkynet Cloud Systems) Degree of Operating Leverage : 31.02 (As of Jan. 2025)


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What is Skkynet Cloud Systems Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Skkynet Cloud Systems's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 31.02. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SKKY's Degree of Operating Leverage is ranked worse than
94.04% of 2666 companies
in the Software industry
Industry Median: 0.785 vs SKKY: 31.02

Skkynet Cloud Systems Degree of Operating Leverage Historical Data

The historical data trend for Skkynet Cloud Systems'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.

Skkynet Cloud Systems Degree of Operating Leverage Chart

Skkynet Cloud Systems Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.96 -2.79 -3.42 9.29 -18.83

Skkynet Cloud Systems Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 -9.99 -7.86 -15.59 -18.83 31.02

Competitive Comparison of Skkynet Cloud Systems's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Skkynet Cloud Systems'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.


Skkynet Cloud Systems's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Skkynet Cloud Systems Degree of Operating Leverage Calculation

Skkynet Cloud Systems's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 0.218 (Jan. 2025) / 0.054 (Jan. 2024) - 1 )/( 2.759 (Jan. 2025) / 2.513 (Jan. 2024) - 1 )
=3.037/0.0979
=31.02***

* 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.


Skkynet Cloud Systems  (OTCPK:SKKY) 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.


Skkynet Cloud Systems Degree of Operating Leverage Related Terms

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


Skkynet Cloud Systems Business Description

Traded in Other Exchanges
N/A
Address
2233 Argentina Road, Suite 302, Mississauga, ON, CAN, L5N 2X7
Skkynet Cloud Systems Inc is an industrial middleware vendor company. Skkynet operates its business through its wholly owned subsidiaries Cogent Real-Time Systems, Inc. (Cogent), Skkynet, Inc. (Skkynet (USA), Skkynet Corp. (Skkynet (Canada)). Skkynet was established to enhance Cogent's existing business lines through the integration of cloud-based systems (Cloud), and to deliver a Software-as-a-Service (SaaS) product targeting the Industrial Internet of Things (IoT) market, often referred to by the term Industry 4.0. The business serves North America, Europe, Asia Pacific, South America and other regions.
Executives
Andrew S Thomas director, 10 percent owner, officer: Chief Executive Officer 2233 ARGENTIA ROAD, SUITE 302, MISSISSAUGA A6 L5N 2X7
Paul Benford director, 10 percent owner, officer: Chief Operating Officer 2233 ARGENTIA ROAD, SUITE 302, MISSISSAUGA A6 L5N 2X7
Lowell Thomas Holden officer: Chief Financial Officer 631 US HWY 1, SUITE 407, NORTH PALM BEACH FL 33408
Paul E Thomas director, 10 percent owner, officer: President 2233 ARGENTIA ROAD, SUITE 302, MISSISSAUGA A6 L5N 2X7
Xavier Eric Mesrobian officer: VP Sales and Marketing 2233 ARGENTIA ROAD, SUITE 302, MISSISSAUGA A6 L5N 2X7
John X Adiletta director 51 BOULDERWOOD DRIVE, BERNARDSVILLE NJ 07924
Kenneth W. Jennings director 2233 ARGENTIA ROAD, SUITE 302, MISSISSAUGA A6 L5N 2X7
Norman Evans director 5650 TOMKEN RD., UNIT 16, MISSISSAUGA A6 L4W 4P1
Michael R Thomas other: Advisor 2233 ARGENTIA ROAD, SUITE 306, MISSISSAUGA A6 L5N 2X7

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