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SOND (Sonder Holdings) Degree of Operating Leverage : -0.78 (As of Sep. 2024)


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What is Sonder Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sonder Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -0.78. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SOND's Degree of Operating Leverage is ranked better than
69.96% of 809 companies
in the Travel & Leisure industry
Industry Median: 1.25 vs SOND: -0.78

Sonder Holdings Degree of Operating Leverage Historical Data

The historical data trend for Sonder 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.

Sonder Holdings Degree of Operating Leverage Chart

Sonder Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
- -1.97 0.02 -0.11 0.73

Sonder Holdings Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 2.39 0.73 -1.13 -3.22 -0.78

Competitive Comparison of Sonder Holdings's Degree of Operating Leverage

For the Lodging subindustry, Sonder 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.


Sonder Holdings's Degree of Operating Leverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Sonder Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Sonder Holdings Degree of Operating Leverage Calculation

Sonder Holdings'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
=( -277.835 (Sep. 2024) / -297.039 (Sep. 2023) - 1 )/( 624.458 (Sep. 2024) / 576.466 (Sep. 2023) - 1 )
=-0.0647/0.0833
=-0.78***

* 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.


Sonder Holdings  (NAS:SOND) 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.


Sonder Holdings Degree of Operating Leverage Related Terms

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


Sonder Holdings Business Description

Traded in Other Exchanges
N/A
Address
447 Sutter Street, No. 542, Suite 405, San Francisco, CA, USA, 94108
Sonder Holdings Inc is engaged in providing short and long-term accommodations to travelers in various cities across North America, Europe, and the Middle East. The Sonder units in each apartment-style building and each hotel property are selected, designed, and managed directly by the Company. The Company generates revenues by providing short-term or month-to-month accommodations to its guests. The Company also provides accommodations to travelers through boutique hotels.
Executives
Christopher Michael Berry officer: Chief Accounting Officer C/O SONDER HOLDINGS INC., 101 15TH ST., SAN FRANCISCO CA 94103
Francis Davidson director, officer: Chief Executive Officer C/O SONDER HOLDINGS, INC., 101 15TH ST, SAN FRANCISCO CA 94103
Philip L Rothenberg officer: General Counsel & Secretary C/O SONDER HOLDINGS, INC., 101 15TH ST, SAN FRANCISCO CA 94103
Dominique Bourgault officer: Chief Financial Officer 6802 AZALEA WAY SE, SNOQUALMIE WA 98065
Prashant Aggarwal director C/O ARLO TECHNOLOGIES, INC., 350 EAST PLUMERIA DR, SAN JOSE CA 95134
Martin Picard officer: Global Head of Real Estate C/O SONDER HOLDINGS, INC., 101 15TH ST, SAN FRANCISCO CA 94103
Michelle M Frymire director C/O SPIRIT REALTY CAPITAL, INC., 2727 N. HARWOOD STREET, SUITE 300, DALLAS TX 75201
Nabeel A Hyatt director C/O SONDER HOLDINGS, INC., 101 15TH ST, SAN FRANCISCO CA 94103
Van Paasschen Frits D director C/O STARWOOD HOTELS & RESORTS WORLDWIDE, 1111 WESTCHESTER AVENUE, WHITE PLAINS NY 10604
Gilda Perez-alvarado director C/O SONDER HOLDINGS, INC., 101 15TH ST., SAN FRANCISCO CA 94103
Janice L. Sears director 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
Sanjay D Banker officer: President and CFO C/O SONDER HOLDINGS, INC., 101 15TH ST, SAN FRANCISCO CA 94103
Ritesh K Patel officer: VP, Controller C/O SONDER HOLDINGS INC., 101 15TH ST., SAN FRANCISCO CA 94103
Satyen J Pandya officer: Chief Technology Officer C/O SONDER HOLDINGS, INC., 101 15TH ST., SAN FRANCISCO CA 94103
Manon Brouillette director 40 AVENUE SPRINGGROVE, MONTREAL Z4 H3C 4M8