GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Stagwell Inc (NAS:STGW) » Definitions » Degree of Operating Leverage

STGW (Stagwell) Degree of Operating Leverage : -3.35 (As of Mar. 2025)


View and export this data going back to 2021. Start your Free Trial

What is Stagwell Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Stagwell's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -3.35. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STGW's Degree of Operating Leverage is ranked better than
78.01% of 987 companies
in the Media - Diversified industry
Industry Median: 1.18 vs STGW: -3.35

Stagwell Degree of Operating Leverage Historical Data

The historical data trend for Stagwell'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.

Stagwell Degree of Operating Leverage Chart

Stagwell Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 2.70 0.14 0.79 -3.32 -2.29

Stagwell 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 -19.23 -254.25 59.15 -2.29 -3.35

Competitive Comparison of Stagwell's Degree of Operating Leverage

For the Advertising Agencies subindustry, Stagwell'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.


Stagwell's Degree of Operating Leverage Distribution in the Media - Diversified Industry

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

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


;
;

Stagwell Degree of Operating Leverage Calculation

Stagwell'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
=( 127.465 (Mar. 2025) / 188.259 (Mar. 2024) - 1 )/( 2822.897 (Mar. 2025) / 2574.792 (Mar. 2024) - 1 )
=-0.3229/0.0964
=-3.35***

* 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.


Stagwell  (NAS:STGW) 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.


Stagwell Degree of Operating Leverage Related Terms

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


Stagwell Business Description

Traded in Other Exchanges
Address
One World Trade Center, Floor 65, New York, NY, USA, 10007
Stagwell Inc is the challenger holding company built to transform marketing. It delivers scaled creative performance for the world's ambitious brands, connecting culture-moving creativity with a technology to harmonize the art and science of marketing. The company's segments include Integrated Agencies Network; Brand Performance Network; and Communications Network. It generates maximum revenue from the Integrated Agencies Network segment. Geographically, it derives a majority of its revenue from the United States.
Executives
Mark Jeffery Penn director, 10 percent owner, officer: Chief Executive Officer 1808 I STREENET, NW, 6TH FLOOR, WASHINGTON DC 20006
Eli Samaha director ONE WORLD TRADE CENTER, FLOOR 65, NEW YORK NY 10007
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Bradley J. Gross director 85 BROAD STREET, NEW YORK NY 10004
Wade Oosterman director C/O INGRAM MICRO INC., 1600 E. ST. ANDREW PLACE, SANTA ANA CA 92705
Peter Mcelligott officer: General Counsel ONE WORLD TRADE CENTER, FLOOR 65, NEW YORK NY 10007
Jay Leveton officer: President 1808 EYE STREET, NW, EIGHTH FLOOR, C/O STAGWELL INC., WASHINGTON DC DC 20006
Vincenzo Dimaggio officer: SVP, Chief Accounting Officer 330 HUDSON STREET, 10TH FLOOR, NEW YORK NY 10013
Alpinvest Partners B.v. 10 percent owner JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Alpinvest Ga Secondary C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Aj Secondary C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Alpinvest Partners Us Secondary Investments 2016 I C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Alpinvest Pep Secondary 2017 C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Alpinvest Secondaries Fund Vi C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ
Alpinvest Secondaries Fund (euro) Vi C.v. 10 percent owner C/O ALPINVEST PARTNERS B.V., JACHTHAVENWEG 118, AMSTERDAM P7 1081 KJ