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UPWK (Upwork) Degree of Operating Leverage : -16.94 (As of Sep. 2024)


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What is Upwork Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Upwork's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -16.94. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

UPWK's Degree of Operating Leverage is ranked better than
90.34% of 559 companies
in the Interactive Media industry
Industry Median: 0.93 vs UPWK: -16.94

Upwork Degree of Operating Leverage Historical Data

The historical data trend for Upwork'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.

Upwork Degree of Operating Leverage Chart

Upwork Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial -0.76 1.78 4.26 3.08 -7.67

Upwork Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -4.37 -7.67 -10.07 -11.41 -16.94

Competitive Comparison of Upwork's Degree of Operating Leverage

For the Internet Content & Information subindustry, Upwork'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.


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

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

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



Upwork Degree of Operating Leverage Calculation

Upwork's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 60.051 (Sep. 2024) / -42.385 (Sep. 2023) - 1 )/( 761.776 (Sep. 2024) / 666.644 (Sep. 2023) - 1 )
=-2.4168/0.1427
=-16.94***

* 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.


Upwork  (NAS:UPWK) 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.


Upwork Degree of Operating Leverage Related Terms

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


Upwork Business Description

Traded in Other Exchanges
Address
475 Brannan Street, Suite 430, San Francisco, CA, USA, 94107
Upwork Inc is a United States-based company that operates an online marketplace that enables businesses to find and work with skilled independent professionals. The company develops platform for hiring and freelancing purposes. Its products offering include Upwork Basic, Upwork Plus, Upwork Business, Upwork Enterprise, and Upwork Payroll. The business generates revenue from Talent and Clients across the USA, India, the Philippines and the rest of the world. Substantial income is derived from providing services to clients.
Executives
Hayden Brown director, officer: President & CEO C/O UPWORK INC., 441 LOGUE AVENUE, MOUNTAIN VIEW CA 94043
Olivier Marie officer: Chief Accounting Officer C/O UPWORK, INC., 475 BRANNAN STREET SUITE 430, SAN FRANCISCO CA 94107
Erica Gessert officer: Chief Financial Officer C/O UPWORK INC., 475 BRANNAN STREET, SUITE 430, SAN FRANCISCO CA 94107
Elizabeth A Nelson director MACROMEDIA/ 600 TOWNSEND ST, SAN FRANCISCO CA 94103
Gary Steele director C/O PROOFPOINT, INC., 892 ROSS DRIVE, SUNNYVALE CA 94089
Jeff Mccombs officer: Chief Financial Officer C/O UPWORK INC., 2625 AUGUSTINE DRIVE, SUITE 601, SANTA CLARA CA 95054
Eric Gilpin officer: Senior VP, Sales C/O UPWORK INC., 2625 AUGUSTINE DRIVE, SUITE 601, SANTA CLARA CA 95054
Leela Srinivasan director C/O UPWORK, INC., 441 LOGUE AVENUE, MOUNTAIN VIEW CA 94043
Kevin Harvey director 2480 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Thomas Layton director, other: Chairman C/O TICKETMASTER ONLINE CITYSEARCH INC, 790 E COLORADO BLVD STE 200, PASADENA CA 91101
Anilu Vazquez-ubarri director C/O UPWORK INC., 2625 AUGUSTINE DRIVE, SUITE 601, SANTA CLARA CA 95054
Gregory C. Gretsch director C/O RESPONSYS, INC., 900 CHERRY AVENUE, 5TH FLOOR, SAN BRUNO CA 94066
Brian K Kinion officer: Chief Financial Officer C/O MARKETO INC., 901 MARINERS ISLAND BLVD., SUITE 500, SAN MATEO CA 94404
Stephane Kasriel director C/O UPWORK INC., 441 LOGUE AVENUE, MOUNTAIN VIEW CA 94043
Han-shen Yuan officer: SVP, Engineering C/O UPWORK INC., 441 LOGUE AVENUE, MOUNTAIN VIEW CA 94043