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AERT (Aeries Technology) Degree of Operating Leverage : -49.88 (As of Dec. 2024)


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What is Aeries Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Aeries Technology's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -49.88. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AERT's Degree of Operating Leverage is ranked better than
95.27% of 1014 companies
in the Business Services industry
Industry Median: 1.055 vs AERT: -49.88

Aeries Technology Degree of Operating Leverage Historical Data

The historical data trend for Aeries Technology'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.

Aeries Technology Degree of Operating Leverage Chart

Aeries Technology Annual Data
Trend Mar22 Mar23 Mar24
Degree of Operating Leverage
- -1.84 6.59

Aeries Technology Quarterly Data
Mar22 Jun22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - 6.59 0.26 -8.81 -49.88

Competitive Comparison of Aeries Technology's Degree of Operating Leverage

For the Consulting Services subindustry, Aeries Technology'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.


Aeries Technology's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Aeries Technology's Degree of Operating Leverage distribution charts can be found below:

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


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Aeries Technology Degree of Operating Leverage Calculation

Aeries Technology'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
=( 14.577 (Dec. 2024) / -12.298 (Dec. 2023) - 1 )/( 70.851 (Dec. 2024) / 67.877 (Dec. 2023) - 1 )
=-2.1853/0.0438
=-49.88***

* 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.


Aeries Technology  (NAS:AERT) 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.


Aeries Technology Degree of Operating Leverage Related Terms

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Aeries Technology Business Description

Traded in Other Exchanges
N/A
Address
60 Paya Lebar Road, No. 08-13, Paya Lebar Square, Singapore, SGP, 409051
Aeries Technology Inc is a professional and management services partner offering a range of management consultancy services for private equity sponsors and their portfolio companies with engagement models that are designed to provide a mix of deep vertical specialty, functional expertise, and digital systems and solutions to scale, optimize and transform a client's business operations. It supports and drives its client's growth across the globe by providing a range of management consultancy services involving professional advisory services and operations management services to build and manage dedicated delivery centers in appropriate locations based on customer business needs.
Executives
Tony Marion Pearce director, officer: Executive Chairman 123 EAST 200 NORTH, ALPINE UT 84004
Terry Vernon Pearce director, officer: Executive Vice-Chairman 123 EAST 200 NORTH, ALPINE UT 84004
David V. Crowder director C/O GSV CAPITAL CORP., 2956 WOODSIDE ROAD, WOODSIDE CA 94062
Lynne Marie Laube director C/O CARDLYTICS, INC., 675 PONCE DE LEON AVENUE NE, SUITE 6000, ATLANTA GA 30308
Tanner Ainge director 1633 W. INNOVATION WAY, 5TH FLOOR, LEHI UT 84043
Worldwide Webb Acquisition Sponsor, Llc 10 percent owner 770 E TECHNOLOGY WAY F13-16, OREM UT 84097
Daniel S. Webb director, 10 percent owner, officer: CEO, CFO 770 E TECHNOLOGY WAY F13-16, OREM UT 84097
Davis Smith director 770 E TECHNOLOGY WAY F13-16, OREM UT 84097