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FintechWerx International Software Services (XCNQ:WERX) Degree of Operating Leverage : -2.16 (As of Jan. 2025)


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What is FintechWerx International Software Services Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. FintechWerx International Software Services's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was -2.16. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for FintechWerx International Software Services's Degree of Operating Leverage or its related term are showing as below:

XCNQ:WERX's Degree of Operating Leverage is ranked better than
76.42% of 2668 companies
in the Software industry
Industry Median: 0.78 vs XCNQ:WERX: -2.16

FintechWerx International Software Services Degree of Operating Leverage Historical Data

The historical data trend for FintechWerx International Software Services'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.

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FintechWerx International Software Services Degree of Operating Leverage Chart

FintechWerx International Software Services Annual Data
Trend Apr23 Apr24
Degree of Operating Leverage
- -

FintechWerx International Software Services Quarterly Data
Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Degree of Operating Leverage Get a 7-Day Free Trial - - - - -2.16

Competitive Comparison of FintechWerx International Software Services's Degree of Operating Leverage

For the Software - Infrastructure subindustry, FintechWerx International Software Services'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.


FintechWerx International Software Services's Degree of Operating Leverage Distribution in the Software Industry

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

* The bar in red indicates where FintechWerx International Software Services's Degree of Operating Leverage falls into.


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FintechWerx International Software Services Degree of Operating Leverage Calculation

FintechWerx International Software Services's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.635 (Jan. 2025) / -0.274 (Jan. 2024) - 1 )/( 0.049 (Jan. 2025) / 0.126 (Jan. 2024) - 1 )
=1.3175/-0.6111
=-2.16***

* 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.


FintechWerx International Software Services  (XCNQ:WERX) 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.


FintechWerx International Software Services Degree of Operating Leverage Related Terms

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FintechWerx International Software Services Business Description

Traded in Other Exchanges
N/A
Address
1275 West, 6th Avenue, Suite 315, Vancouver, BC, CAN, V6H 1A6
FintechWerx International Software Services Inc is an e-commerce technology company. The Company is engaged in delivering enrollment, automated identity verification, payment solutions, and data management services. The FintechWerx Platform is a combination of both licensed and proprietary software together the Technology Stack that provides a single comprehensive, suite of services for small to medium sized enterprises.

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