GURUFOCUS.COM » STOCK LIST » Technology » Software » StoneCo Ltd (STU:0Q0) » Definitions » Degree of Operating Leverage

StoneCo (STU:0Q0) Degree of Operating Leverage : 32.13 (As of Mar. 2025)


View and export this data going back to 2018. Start your Free Trial

What is StoneCo Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. StoneCo's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 32.13. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:0Q0's Degree of Operating Leverage is ranked worse than
94.3% of 2665 companies
in the Software industry
Industry Median: 0.78 vs STU:0Q0: 32.13

StoneCo Degree of Operating Leverage Historical Data

The historical data trend for StoneCo'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.

StoneCo Degree of Operating Leverage Chart

StoneCo Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -7.42 -4.33 -1.49 14.09 -70.13

StoneCo Quarterly Data
Jun20 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 6.15 3.38 5.38 -70.13 32.13

Competitive Comparison of StoneCo's Degree of Operating Leverage

For the Software - Infrastructure subindustry, StoneCo'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.


StoneCo's Degree of Operating Leverage Distribution in the Software Industry

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

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


;
;

StoneCo Degree of Operating Leverage Calculation

StoneCo'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
=( 83.937 (Mar. 2025) / 536.876 (Mar. 2024) - 1 )/( 2160.884 (Mar. 2025) / 2209.435 (Mar. 2024) - 1 )
=-0.8437/-0.022
=38.39***

* 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.


StoneCo  (STU:0Q0) 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.


StoneCo Degree of Operating Leverage Related Terms

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


StoneCo Business Description

Industry
Address
18 Forum Lane, Camana Bay, Block 12D Parcel 33 and 95, P.O. Box 10240, Grand Cayman, CYM, KY1-1002
StoneCo Ltd is a provider of financial technology solutions. It serves MSMBs solutions, at fair prices, and provides the customer experience to help them manage their businesses and sell more. Its Stone Business Model combines end-to-end, cloud-based technology platforms; differentiated hyper-local and integrated distribution approaches; and white-glove, on-demand customer service. It has two segments Financial Services segment, which includes payments solutions, digital banking, credit, insurance solutions as well as the registry business. In the Software segment solution includes POS/ERP, TEF and QR Code gateways, reconciliation, CRM, OMS, e-commerce platform, engagement tool, ads solution, and marketplace hub. It generates the majority of its revenue from the Financial Services segment.

StoneCo Headlines

No Headlines