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TWKS (Thoughtworks Holding) Degree of Operating Leverage : 27.40 (As of Jun. 2024)


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What is Thoughtworks Holding Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Thoughtworks Holding's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 27.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TWKS's Degree of Operating Leverage is not ranked
in the Software industry.
Industry Median: 0.78 vs TWKS: 27.40

Thoughtworks Holding Degree of Operating Leverage Historical Data

The historical data trend for Thoughtworks Holding'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.

Thoughtworks Holding Degree of Operating Leverage Chart

Thoughtworks Holding Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
- - -0.70 -10.65 5.17

Thoughtworks Holding Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -119.66 18.01 5.17 -18.89 27.40

Competitive Comparison of Thoughtworks Holding's Degree of Operating Leverage

For the Information Technology Services subindustry, Thoughtworks Holding'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.


Thoughtworks Holding's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Thoughtworks Holding Degree of Operating Leverage Calculation

Thoughtworks Holding's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -73.971 (Jun. 2024) / 20.946 (Jun. 2023) - 1 )/( 1032.809 (Jun. 2024) / 1237.462 (Jun. 2023) - 1 )
=-4.5315/-0.1654
=27.40***

* 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.


Thoughtworks Holding  (NAS:TWKS) 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.


Thoughtworks Holding Degree of Operating Leverage Related Terms

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Thoughtworks Holding Business Description

Traded in Other Exchanges
N/A
Address
200 East Randolph Street, 25th Floor, Chicago, IL, USA, 60601
Thoughtworks Holding Inc is a global technology consultancy that integrates strategy, design, and software engineering to enable enterprises and technology disruptors across the globe to thrive as modern digital businesses. Its global service lines include Enterprise Modernization, Platforms and Cloud; Customer Experience, Product and Design; Data and Artificial Intelligence (AI), and Digital Transformation and Operations. Geographically, it derives a majority of its revenue from North America and also has a presence in APAC; Europe, and LATAM.
Executives
Joanna Parke officer: Chief Talent Officer C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Sudhir Tiwari officer: See Remarks 300 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Erin Cummins officer: Chief Financial Officer C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Guo Xiao director, officer: Chief Executive Officer C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Ian Davis director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Christopher Gerard Murphy officer: See Remarks C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Sai Krishna Mandapaty officer: Chief Commercial Officer C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Julie Woods-moss officer: Chief Marketing Officer C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Angela Ferguson officer: Chief Transformation Officer C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
William G Parrett director THE BLACKSTONE GROUP L.P., 345 PARK AVENUE, NEW YORK NY 10154
Ramona Mateiu officer: See Remarks C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Chad-affonso Wathington officer: Chief Strategy Officer C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Rebecca J Parsons officer: Chief Technology Officer C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Rohan Haldea director C/O TURING HOLDING CORP., 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601
Turing Gp Co. Ltd 10 percent owner 200 EAST RANDOLPH STREET, 25TH FLOOR, CHICAGO IL 60601