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BKKT (Bakkt Holdings) Degree of Operating Leverage : -0.10 (As of Jun. 2024)


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What is Bakkt Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Bakkt Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was -0.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BKKT's Degree of Operating Leverage is ranked better than
59% of 2651 companies
in the Software industry
Industry Median: 0.6 vs BKKT: -0.10

Bakkt Holdings Degree of Operating Leverage Historical Data

The historical data trend for Bakkt 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.

* Premium members only.

Bakkt Holdings Degree of Operating Leverage Chart

Bakkt Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
- - 0.38 -0.02

Bakkt Holdings Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -0.02 -0.03 -0.02 -0.01 -0.10

Competitive Comparison of Bakkt Holdings's Degree of Operating Leverage

For the Software - Infrastructure subindustry, Bakkt 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.


Bakkt Holdings's Degree of Operating Leverage Distribution in the Software Industry

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

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



Bakkt Holdings Degree of Operating Leverage Calculation

Bakkt Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -100.38 (Jun. 2024) / -160.25 (Jun. 2023) - 1 )/( 1783.768 (Jun. 2024) / 389.969 (Jun. 2023) - 1 )
=-0.3736/3.5741
=-0.10***

* 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.


Bakkt Holdings  (NYSE:BKKT) 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.


Bakkt Holdings Degree of Operating Leverage Related Terms

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


Bakkt Holdings Business Description

Industry
Traded in Other Exchanges
N/A
Address
10000 Avalon Boulevard, Suite 1000, Alpharetta, GA, USA, 30009
Bakkt Holdings Inc operates technology that connects the digital economy by offering a platform for crypto and redeeming loyalty points. Its institutional-grade technology platform provides a custody solution that caters to more experienced market participants to store crypto and provides consumers, businesses, and institutions with the ability to buy, sell, and store crypto in a simple, intuitive digital experience accessed via application programming interfaces (APIs) or embedded web experience, and Loyalty offers a full spectrum of content that clients can make available to its customers when redeeming loyalty currencies. It generates revenue in the form of Subscription and service and Transaction revenue.
Executives
Intercontinental Exchange, Inc. 10 percent owner 5660 NEW NORTHSIDE DRIVE,, THIRD FLOOR, ATLANTA GA 30328
Marc D'annunzio officer: General Counsel & Secretary C/O BAKKT HOLDINGS, INC., 10000 AVALON BOULEVARD, SUITE 1000, ALPHARETTA GA 30009
Vpc Impact Acquisition Holdings Sponsor, Llc director, 10 percent owner, other: See Remarks 150 NORTH RIVERSIDE PLAZA, SUITE 5200, CHICAGO IL 60606
Sean Roberts Collins director C/O BAKKT HOLDINGS, INC., 10000 AVALON BOULEVARD, SUITE 1000, ALPHARETTA GA 30009
Mark Sonbolian Elliot officer: Chief Sales & Mktg Officer C/O BAKKT HOLDINGS INC., 10000 AVALON BLVD., SUITE 1000, ALPHARETTA GA 30009
Michael Gavin Constantine director, officer: Chief Executive Officer C/O BAKKT HOLDINGS, INC., 10000 AVALON BOULEVARD, SUITE 1000, ALPHARETTA GA 30009
Karen Alexander officer: Chief Accounting Officer C/O BAKKT HOLDINGS, INC., 10000 AVALON BOULEVARD, SUITE 1000, ALPHARETTE GA 30009
Charles Goodroe officer: Chief Accounting Officer C/O BAKKT HOLDINGS INC., 10000 AVALON BLVD., SUITE 1000, ALPHARETTA GA 30009
Meredith Spatz officer: Chief Customer Officer C/O BAKKT HOLDINGS INC., 10000 AVALON BLVD., SUITE 1000, ALPHARETTA GA 30009
De'ana Dow director C/O BAKKT HOLDINGS, INC., 10000 AVALON BOULEVARD, SUITE 1000, ALPHARETTA GA 30009
Jill Simeone director C/O ETSY, 117 ADAMS STREET, BROOKLYN NY 11201
Nancy Gordon officer: EVP Loyalty Rewards & Payments C/O BAKKT HOLDINGS, INC., 5500 WINDWARD PKWY., SUITE 450, ALPHARETTA GA 30005
Andrew A Main director C/O BAKKT HOLDINGS, INC., 10000 AVALON BOULEVARD, SUITE 1000, ALPHARETTA GA 30009
Daniel O'prey officer: EVP, Digital Assets C/O BAKKT HOLDINGS, INC., 10000 AVALON BOULEVARD, SUITE 1000, ALPHARETTA GA 30009
Michael Leroy Lewis officer: EVP Engineering & Operations C/O BAKKT HOLDINGS, INC., 10000 AVALON BOULEVARD, SUITE 1000, ALPHARETTA GA 30009