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TKO (TKO Group Holdings) Degree of Operating Leverage : 15.44 (As of Mar. 2025)


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What is TKO Group Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. TKO Group Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 15.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TKO's Degree of Operating Leverage is ranked worse than
86.28% of 984 companies
in the Media - Diversified industry
Industry Median: 1.22 vs TKO: 15.44

TKO Group Holdings Degree of Operating Leverage Historical Data

The historical data trend for TKO Group 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.

TKO Group Holdings Degree of Operating Leverage Chart

TKO Group Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 1.57 3.69 -0.38 -0.29

TKO Group Holdings Quarterly Data
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 -0.67 -0.38 -0.29 -0.29 15.44

Competitive Comparison of TKO Group Holdings's Degree of Operating Leverage

For the Entertainment subindustry, TKO Group 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.


TKO Group Holdings's Degree of Operating Leverage Distribution in the Media - Diversified Industry

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

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


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TKO Group Holdings Degree of Operating Leverage Calculation

TKO Group Holdings'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
=( 723.06 (Mar. 2025) / 118.912 (Mar. 2024) - 1 )/( 3443.43 (Mar. 2025) / 2590.686 (Mar. 2024) - 1 )
=5.0806/0.3292
=15.44***

* 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.


TKO Group Holdings  (NYSE:TKO) 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.


TKO Group Holdings Degree of Operating Leverage Related Terms

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TKO Group Holdings Business Description

Traded in Other Exchanges
N/A
Address
200 fifth Avenue, 7th Floor, New York, NY, USA, 10010
TKO Group Holdings Inc is a sports and sports entertainment company that operates combat sport and sports entertainment companies. It owns and manages valuable sports and entertainment intellectual property. The company distributes content and monetizes its intellectual property through four principal activities: Media Rights and Content, Live Events, Sponsorship, and Consumer Products Licensing. The company has two reportable segments, UFC and WWE. The company generates the majority of its revenue from the UFC segment. The UFC segment revenue consists of media rights fees associated with the distribution of its programming content, ticket sales, and site fees associated with the business's global live events, sponsorship, and consumer products licensing agreements of UFC-branded products.
Executives
Sonya E Medina director P.O. BOX 99900, LOUISVILLE KY 40269
Jonathan Kraft director C/O ENDEAVOR GROUP HOLDINGS, INC., 9601 WILSHIRE BOULEVARD, 3RD FLOOR, BEVERLY HILLS CA 90210
Silver Lake West Holdco, L.p. 10 percent owner C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Patrick Whitesell 10 percent owner 11601 WILSHIRE BOULEVARD, SUITE 1600, LOS ANGELES CA 90025
Ariel Emanuel director, 10 percent owner, officer: Chief Executive Officer C/O SOURCE INTERLINK COMPANIES, INC., 27500 RIVERVIEW CENTER BLVD, SUITE 400, BONITA SPRINGS FL 34134
Shane Kapral officer: Chief Accounting Officer C/O ENDEAVOR GROUP HOLDINGS, INC., 9601 WILSHIRE BOULEVARD, 3RD FLOOR, BEVERLY HILLS CA 90210
Andrew M Schleimer officer: Chief Financial Officer C/O SIX FLAGS, INC., 11501 NORTHEAST EXPRESSWAY, OKLAHOMA CITY OK 73131
Seth D Krauss officer: Chief Legal Officer C/O TAKE-TWO INTERACTIVE SOFTWARE, INC., 222 BROADWAY, NEW YORK NY 10012
Mark S Shapiro director, officer: See Remarks C/O RED ZONE LLC, 21300 REDSKIN PARK DRIVE, ASHBURN VA 20147
Nick Khan director 1241 EAST MAIN STREET, STAMFORD CT 06902
Vincent K Mcmahon director, 10 percent owner C/O WORLD WRESTLING ENTERTAINMENT INC, 1241 EAST MAIN STREET, STAMFORD CT 06902
Steven R Koonin director 625 WESTPORT PARKWAY, GRAPEVINE TX 76051
Carrie Wheeler director 500 VOLVO PARKWAY, CHESAPEAKE VA 23320
Bynoe Peter C B director 203 NORTH LASALLE STREET, SUITE 1900, CHICAGO IL 60601
Egon Durban director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025