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Platform Group AG (XTER:TPG) Degree of Operating Leverage : 0.83 (As of Dec. 2024)


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What is Platform Group AG Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Platform Group AG's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 0.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XTER:TPG's Degree of Operating Leverage is ranked worse than
50.68% of 2666 companies
in the Software industry
Industry Median: 0.785 vs XTER:TPG: 0.83

Platform Group AG Degree of Operating Leverage Historical Data

The historical data trend for Platform Group AG'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.

Platform Group AG Degree of Operating Leverage Chart

Platform Group AG Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -0.59 -2.75 -78.08 1.97 0.83

Platform Group AG Semi-Annual Data
Dec16 Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 -78.08 -18.55 1.97 0.54 0.83

Competitive Comparison of Platform Group AG's Degree of Operating Leverage

For the Software - Application subindustry, Platform Group AG'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.


Platform Group AG's Degree of Operating Leverage Distribution in the Software Industry

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

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


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Platform Group AG Degree of Operating Leverage Calculation

Platform Group AG's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 45.801 (Dec. 2024) / 38.919 (Dec. 2023) - 1 )/( 524.642 (Dec. 2024) / 432.201 (Dec. 2023) - 1 )
=0.1768/0.2139
=0.83***

* 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.


Platform Group AG  (XTER:TPG) 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.


Platform Group AG Degree of Operating Leverage Related Terms

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


Platform Group AG Business Description

Industry
Traded in Other Exchanges
Address
Schloss Elbroich, Am Falder 4, Dusseldorf, NW, DEU, 40589
Platform Group AG is a dominant platform group in Europe and uses high-quality software solutions to connect partners with eCommerce. The company operates with software-based platform solutions that can be used universally in almost all sectors and industries. The company's operating segments include Consumer Goods, Freight Goods, Industrial Goods, and Service & Retail Goods. The company generates the majority of its revenue from the Consumer Goods segment. Geographically, the company generates the majority of its revenue from Germany, Austria, Switzerland and the Netherlands.
Executives
Dominik Pasqual Benner Board of Directors
Reinhard Hetkamp CFO
Laura Vogelsang Board of Directors
Georg Hesse Board of Directors
Thomas Buhl Board of Directors