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EQT Holdings (ASX:EQT) Degree of Operating Leverage : -1.98 (As of Dec. 2024)


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What is EQT Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. EQT Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -1.98. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ASX:EQT's Degree of Operating Leverage is ranked better than
81.95% of 615 companies
in the Asset Management industry
Industry Median: 0.69 vs ASX:EQT: -1.98

EQT Holdings Degree of Operating Leverage Historical Data

The historical data trend for EQT 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.

EQT Holdings Degree of Operating Leverage Chart

EQT Holdings Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.85 0.35 2.35 -0.57 0.40

EQT Holdings Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.54 -0.57 0.79 0.40 -1.98

Competitive Comparison of EQT Holdings's Degree of Operating Leverage

For the Asset Management subindustry, EQT 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.


EQT Holdings's Degree of Operating Leverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, EQT Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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EQT Holdings Degree of Operating Leverage Calculation

EQT Holdings'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
=( 35.703 (Dec. 2024) / 42.902 (Dec. 2023) - 1 )/( 169.522 (Dec. 2024) / 156.267 (Dec. 2023) - 1 )
=-0.1678/0.0848
=-1.98***

* 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.


EQT Holdings  (ASX:EQT) 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.


EQT Holdings Degree of Operating Leverage Related Terms

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EQT Holdings Business Description

Traded in Other Exchanges
N/A
Address
575 Bourke Street, Level 1, Melbourne, VIC, AUS, 3000
EQT Holdings Ltd is an independent trustee and executor company. The company's operating segment includes Trustee & Wealth Services, Corporate & Superannuation Trustee Services - Australia, and Corporate Trustee Services - Europe. It generates maximum revenue from Trustee and Wealth Services. The Trustee & wealth Services segment provides a range of private client, philanthropic and superannuation services including estate planning and management; charitable, compensation, community and personal trust services, wealth management and advice. It has a presence in Australia, the United Kingdom, and Ireland.