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AAGR (African Agriculture Holdings) Degree of Operating Leverage : 0.00 (As of Mar. 2024)


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What is African Agriculture Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. African Agriculture Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2024 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AAGR's Degree of Operating Leverage is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 1.01
* Ranked among companies with meaningful Degree of Operating Leverage only.

African Agriculture Holdings Degree of Operating Leverage Historical Data

The historical data trend for African Agriculture 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.

African Agriculture Holdings Degree of Operating Leverage Chart

African Agriculture Holdings Annual Data
Trend Dec21 Dec22 Dec23
Degree of Operating Leverage
- - 0.86

African Agriculture Holdings Quarterly Data
Dec21 Mar22 Jun22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only - - - 0.86 1.30

Competitive Comparison of African Agriculture Holdings's Degree of Operating Leverage

For the Farm Products subindustry, African Agriculture 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.


African Agriculture Holdings's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, African Agriculture Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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African Agriculture Holdings Degree of Operating Leverage Calculation

African Agriculture Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -44.555 (Mar. 2024) / -10.748 (Mar. 2023) - 1 )/( 1.747 (Mar. 2024) / 0.555 (Mar. 2023) - 1 )
=3.1454/2.1477
=1.46***

* 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.


African Agriculture Holdings  (OTCPK:AAGR) 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.


African Agriculture Holdings Degree of Operating Leverage Related Terms

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African Agriculture Holdings Business Description

Traded in Other Exchanges
N/A
Address
445 Park Avenue, Ninth Floor, New York, NY, USA, 10022
Website
African Agriculture Holdings Inc is a holding company that operates principally through its wholly-owned subsidiary, which is developing the company's initial commercial farming business based in northern Senegal focusing on the production and sale of alfalfa for cattle feed and nutrition purposes. The company will sell alfalfa to owners and suppliers of cattle for feed and nutritional purposes in Senegal and the surrounding regions in Africa, the Economic Community of West African States (ECOWAS) region and the Middle East.

African Agriculture Holdings Headlines