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Sonal Adhesives (BOM:526901) Degree of Operating Leverage : 1.84 (As of Mar. 2025)


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What is Sonal Adhesives Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sonal Adhesives's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.84. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BOM:526901's Degree of Operating Leverage is ranked worse than
60.62% of 1521 companies
in the Chemicals industry
Industry Median: 1.01 vs BOM:526901: 1.84

Sonal Adhesives Degree of Operating Leverage Historical Data

The historical data trend for Sonal Adhesives'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.

Sonal Adhesives Degree of Operating Leverage Chart

Sonal Adhesives Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.18 -3.72 -1.39 -0.09 1.84

Sonal Adhesives Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 -0.09 0.11 -0.49 -0.50 1.84

Competitive Comparison of Sonal Adhesives's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Sonal Adhesives'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.


Sonal Adhesives's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sonal Adhesives's Degree of Operating Leverage distribution charts can be found below:

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


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Sonal Adhesives Degree of Operating Leverage Calculation

Sonal Adhesives's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 37.164 (Mar. 2025) / 31.579 (Mar. 2024) - 1 )/( 1103.326 (Mar. 2025) / 1006.511 (Mar. 2024) - 1 )
=0.1769/0.0962
=1.84***

* 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.


Sonal Adhesives  (BOM:526901) 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.


Sonal Adhesives Degree of Operating Leverage Related Terms

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Sonal Adhesives Business Description

Traded in Other Exchanges
N/A
Address
Takai Adoshi Road, Off. Khopoli-Pen Road, At PO Khopoli, Plot no. 28/1A, Village Dheku, Taluka Khalapur, District Raigad, Khopoli, MH, IND, 410203
Sonal Adhesives Ltd is an India-based manufacturer engaged in the manufacture of adhesive tapes, emulsion and plastic ropes. The Company operates in one operating segment viz, Packing Products. The Company's products are marketed under the brand name SONAL and ADICRYL. The company's products are exported globally including countries like Spain, Nigeria, Germany, the Middle East countries and the African continent.

Sonal Adhesives Headlines

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