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TZOO (Travelzoo) Degree of Operating Leverage : 6.82 (As of Mar. 2025)


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What is Travelzoo Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Travelzoo's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TZOO's Degree of Operating Leverage is ranked worse than
81.72% of 547 companies
in the Interactive Media industry
Industry Median: 1.03 vs TZOO: 6.82

Travelzoo Degree of Operating Leverage Historical Data

The historical data trend for Travelzoo'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.

Travelzoo Degree of Operating Leverage Chart

Travelzoo Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.38 -5.19 -53.72 5.40 -27.61

Travelzoo 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 3.91 4.54 7.90 -27.61 6.82

Competitive Comparison of Travelzoo's Degree of Operating Leverage

For the Internet Content & Information subindustry, Travelzoo'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.


Travelzoo's Degree of Operating Leverage Distribution in the Interactive Media Industry

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

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


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Travelzoo Degree of Operating Leverage Calculation

Travelzoo'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
=( 16.711 (Mar. 2025) / 16.452 (Mar. 2024) - 1 )/( 85.057 (Mar. 2025) / 84.861 (Mar. 2024) - 1 )
=0.0157/0.0023
=6.82***

* 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.


Travelzoo  (NAS:TZOO) 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.


Travelzoo Degree of Operating Leverage Related Terms

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


Travelzoo Business Description

Traded in Other Exchanges
Address
590 Madison Avenue, 35th Floor, New York, NY, USA, 10022
Travelzoo acts as a publisher of travel and entertainment offers. It operates in four segments. Travelzoo North America segment, which is the key revenue driver, consists of operations in Canada and the U.S.; Travelzoo Europe segment consists of operations in France, Germany, Spain, and the U.K.; Jack's Flight Club segment consists of subscription revenue from premium members to access and receive flight deals from Jack's Flight Club via email or via Android or Apple mobile applications; and New Initiatives consists of Travelzoo's licensing activities in Asia Pacific territories. It derives its revenue through advertising fees including listing fees paid by travel, entertainment, and local businesses to advertise their offers on the company's media properties.
Executives
Azzurro Capital Inc 10 percent owner C/O MOORE STEPHENS, PO BOX 743, SUITE 5, WATERGARDENS 4 J1 GX11 1AA
Holger Bartel officer: Executive Vice President
Christina Sindoni Ciocca director 590 MADISON AVENUE, 37TH FLOOR, NEW YORK NY 10022
Ralph Bartel director, 10 percent owner CASELLA POSTALE 823, 6612 ASCONA V8 6612
Lijun Qi officer: Principal Accounting Officer 800 W EL CAMINO REAL, MOUNTAIN VIEW CA 94040
Ralph Bartel 2005 Trust 10 percent owner C/O FEDELTA TRUST LIMITED, 29/31 ATHOL STREET, OMAR HOUSE BLDG, ISLE OF MAN X0 1M11LB
Lisa Su officer: Controller 924 AURA CT, LOS ALTOS CA 94024
Christian Alexander Smart other: Travelzoo GM, Germany PARISER PLATZ 4A, BERLIN 2M 10117
Rachel Barnett director, officer: General Counsel 69 VALLEY ROAD, KATONAH NY 10536
Carrie Liqun Liu director 2#1707 NO.6 ZUOJIAZHUANGZHONGJIE, BEIJING F4 100028
Michael Stitt officer: President, North America 590 MADISON AVENUE, 37TH FLOOR, NEW YORK NY 10022
Hong (hong Wei) Vivian officer: President, Asia Pacific ROOM 102, BLDG 5, NO.169, MENGZI ROAD, HUANGPU DISTRICT, SHANGHAI F4 200023
Caroline J Tsay director C/O ROSETTA STONE INC., 1919 NORTH LYNN STREET, 7TH FLOOR, ARLINGTON VA 22209
Beatrice Tarka director 800 WEST EL CAMINO REAL, SUITE 275, MOUNTAIN VIEW CA 94040
Simon Talling-smith officer: President, Products&Emerg.Biz. 558 VALLEY STREET, SAN FRANCISCO CA 94131