ZPAS (Zoompass Holdings) Degree of Operating Leverage : 0.00 (As of Dec. 2020)

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What is Zoompass Holdings Degree of Operating Leverage?

Zoompass Holdings ZPAS +600.00% Degree of Operating Leverage is 0.00 as of Dec. 2020.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Zoompass Holdings does not have enough data to calculate Degree of Operating Leverage.


Zoompass Holdings  (OTCPK:ZPAS) 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.


Zoompass Holdings Degree of Operating Leverage Related Terms


Zoompass Holdings Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Zoompass Holdings'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.

Zoompass Holdings Degree of Operating Leverage Chart

Zoompass Holdings Annual Data
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Zoompass Holdings Quarterly Data
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ZPAS vs GVP, BSQR, FALC: Degree of Operating Leverage Comparison

For the Software - Infrastructure subindustry, Zoompass Holdings'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.


Zoompass Holdings Degree of Operating Leverage vs Software Industry

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

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



Zoompass Holdings Degree of Operating Leverage Calculation

Zoompass Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2020 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -19.088 (Dec. 2020) / -0.614 (Dec. 2019) - 1 )/( 0.872 (Dec. 2020) / 0 (Dec. 2019) - 1 )
=30.0879/
=N/A***

* 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.

What does a Degree of Operating Leverage of 0.00 mean?
Zoompass Holdings (ZPAS) has a Degree of Operating Leverage of 0.00 as of Dec. 2020. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Zoompass Holdings and its competitors.
Is Zoompass Holdings' Degree of Operating Leverage too high?
Zoompass Holdings' current Degree of Operating Leverage is 0.00.
How does Zoompass Holdings' Degree of Operating Leverage compare to GVP and BSQR?
Zoompass Holdings' Degree of Operating Leverage of 0.00 can be compared against companies in the Software industry. The industry median Degree of Operating Leverage is 0.61. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Software company?
The median Degree of Operating Leverage among Software companies is 0.61, based on 2,700 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Zoompass Holdings and its competitors. For the Software industry, the median Degree of Operating Leverage is 0.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zoompass Holdings's current Degree of Operating Leverage is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zoompass Holdings stock overvalued right now?
Zoompass Holdings (ZPAS) has a current Degree of Operating Leverage of 0.00. The current Degree of Operating Leverage is 0.00. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Zoompass Holdings (ZPAS), the current Degree of Operating Leverage is 0.00 as of Dec. 2020. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Zoompass Holdings Business Description

Address 2455 Cawthra Road, Suite 75, Mississauga, ON, CAN, L5A3P1
Zoompass Holdings Inc is a Fintech company that develops and acquires software platforms and services. The firm offers Prepaid cards, Mobility solutions, cryptocurrency platform operations, research, development, strategical planning solutions and others. The business operating segment includes the rendering of professional services. Main Business assets consist of technology IP related to cryptocurrency exchange/wallet, certain strategic partnerships and customer contracts. Substantial revenue accrues from time basis billing for IT professional services to customers.