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RLF AgTech (ASX:RLF) Degree of Operating Leverage : 1.13 (As of Dec. 2024)


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What is RLF AgTech Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. RLF AgTech's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.13. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ASX:RLF's Degree of Operating Leverage is ranked worse than
52.42% of 248 companies
in the Agriculture industry
Industry Median: 0.985 vs ASX:RLF: 1.13

RLF AgTech Degree of Operating Leverage Historical Data

The historical data trend for RLF AgTech'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.

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RLF AgTech Degree of Operating Leverage Chart

RLF AgTech Annual Data
Trend Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
- - - -10.06

RLF AgTech Semi-Annual Data
Jun21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial - - - -10.06 1.13

Competitive Comparison of RLF AgTech's Degree of Operating Leverage

For the Agricultural Inputs subindustry, RLF AgTech'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.


RLF AgTech's Degree of Operating Leverage Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, RLF AgTech's Degree of Operating Leverage distribution charts can be found below:

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


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RLF AgTech Degree of Operating Leverage Calculation

RLF AgTech'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
=( -4.716 (Dec. 2024) / -2.888 (Dec. 2023) - 1 )/( 19.468 (Dec. 2024) / 12.467 (Dec. 2023) - 1 )
=0.633/0.5616
=1.13***

* 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.


RLF AgTech  (ASX:RLF) 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.


RLF AgTech Degree of Operating Leverage Related Terms

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


RLF AgTech Business Description

Industry
Traded in Other Exchanges
N/A
Address
65 Kurnall Road, Suite A, Welshpool, Perth, WA, AUS, 6106
RLF AgTech Ltd is engaged in the formulation, manufacture, and sale of liquid fertilizers and seed treatments. Its offerings include Seed Primers, Soil & Fertigation, and Foliar. The company's operating segments are classified by the geographical areas where products and services are sold together with its support functions and include China which derives key revenue, Australia, and SE Asia.

RLF AgTech Headlines

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