GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Naksh Precious Metals Ltd (BOM:539402) » Definitions » Degree of Operating Leverage

Naksh Precious Metals (BOM:539402) Degree of Operating Leverage : -3.62 (As of Sep. 2024)


View and export this data going back to 2015. Start your Free Trial

What is Naksh Precious Metals Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Naksh Precious Metals's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -3.62. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Naksh Precious Metals's Degree of Operating Leverage or its related term are showing as below:

BOM:539402's Degree of Operating Leverage is ranked better than
82.51% of 1269 companies
in the Vehicles & Parts industry
Industry Median: 1.2 vs BOM:539402: -3.62

Naksh Precious Metals Degree of Operating Leverage Historical Data

The historical data trend for Naksh Precious Metals'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.

Naksh Precious Metals Degree of Operating Leverage Chart

Naksh Precious Metals Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only - - 0.81 1.16 1.44

Naksh Precious Metals Quarterly Data
Mar19 Sep19 Mar20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -5.90 -1.90 1.44 -1.70 -3.62

Competitive Comparison of Naksh Precious Metals's Degree of Operating Leverage

For the Auto & Truck Dealerships subindustry, Naksh Precious Metals'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.


Naksh Precious Metals's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Naksh Precious Metals's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Naksh Precious Metals's Degree of Operating Leverage falls into.



Naksh Precious Metals Degree of Operating Leverage Calculation

Naksh Precious Metals's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1.952 (Sep. 2024) / -0.267 (Sep. 2023) - 1 )/( 14.847 (Sep. 2024) / 4.503 (Sep. 2023) - 1 )
=-8.3109/2.2971
=-3.62***

* 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.


Naksh Precious Metals  (BOM:539402) 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.


Naksh Precious Metals Degree of Operating Leverage Related Terms

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


Naksh Precious Metals Business Description

Traded in Other Exchanges
N/A
Address
105, 1st Floor, Barodia Tower, D Block, Prashant Vihar, Central Market, Plot No. 12, New Delhi, IND, 110085
Naksh Precious Metals Ltd is a company operating in both the jewelry and base metals industries, with a focus on manufacturing and distributing jewelry items made from gold, silver, and diamonds. The company's product range includes necklaces, bangles, rings, chains, and earrings, designed to reflect sophistication and high-quality craftsmanship. In addition to its jewelry division, Naksh Precious Metals Ltd. is engaged in the production and trading of base metals and steel products. The company's offerings include roofing sheets, nails, nuts and bolts, pipes, springs, CRC and SRC coils, billets, angles, ball bearings, and metals such as zinc and nickel. This product range supports the needs of various industries and markets.

Naksh Precious Metals Headlines

No Headlines