GURUFOCUS.COM » STOCK LIST » Technology » Software » Collective Audience Inc (OTCPK:CAUD) » Definitions » Degree of Operating Leverage

CAUD (Collective Audience) Degree of Operating Leverage : -0.70 (As of Jun. 2024)


View and export this data going back to 2023. Start your Free Trial

What is Collective Audience Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Collective Audience's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was -0.70. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CAUD's Degree of Operating Leverage is ranked better than
64.88% of 2651 companies
in the Software industry
Industry Median: 0.6 vs CAUD: -0.70

Collective Audience Degree of Operating Leverage Historical Data

The historical data trend for Collective Audience'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.

Collective Audience Degree of Operating Leverage Chart

Collective Audience Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
- - - -0.69

Collective Audience Quarterly Data
Dec20 Jun21 Dec21 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 - - -0.69 -0.63 -0.70

Competitive Comparison of Collective Audience's Degree of Operating Leverage

For the Software - Application subindustry, Collective Audience'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.


Collective Audience's Degree of Operating Leverage Distribution in the Software Industry

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

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



Collective Audience Degree of Operating Leverage Calculation

Collective Audience'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
=( -5.997 (Jun. 2024) / -4.687 (Jun. 2023) - 1 )/( 12.142 (Jun. 2024) / 20.236 (Jun. 2023) - 1 )
=0.2795/-0.4
=-0.70***

* 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.


Collective Audience  (OTCPK:CAUD) 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.


Collective Audience Degree of Operating Leverage Related Terms

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


Collective Audience Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
85 Broad Street, 16-079, New York, NY, USA, 10004
Collective Audience Inc is a provider of e-commerce and digital customer acquisition solutions by simplifying digital advertising. It provides a platform that brings all the latest trends, news, and strategies to use from the collective intelligence of their contributors. The company's digital marketing business includes a holistic, self-serve ad tech platform. Its proprietary data-driven, AI-powered solutions allows brands and agencies to advertise across thousands of the world's dominant digital and connected TV publishers.