GURUFOCUS.COM » STOCK LIST » Technology » Software » Lex Nimble Solutions Ltd (BOM:541196) » Definitions » Degree of Operating Leverage

Lex Nimble Solutions (BOM:541196) Degree of Operating Leverage : 4.31 (As of Mar. 2025)


View and export this data going back to 2018. Start your Free Trial

What is Lex Nimble Solutions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lex Nimble Solutions's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.31. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Lex Nimble Solutions's Degree of Operating Leverage or its related term are showing as below:

BOM:541196's Degree of Operating Leverage is ranked worse than
78.24% of 2666 companies
in the Software industry
Industry Median: 0.785 vs BOM:541196: 4.31

Lex Nimble Solutions Degree of Operating Leverage Historical Data

The historical data trend for Lex Nimble Solutions'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.

Lex Nimble Solutions Degree of Operating Leverage Chart

Lex Nimble Solutions 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 -32.31 -9.81 819.28 6.88 4.31

Lex Nimble Solutions Semi-Annual Data
Mar14 Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 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 819.28 41.41 6.88 -109.21 4.31

Competitive Comparison of Lex Nimble Solutions's Degree of Operating Leverage

For the Information Technology Services subindustry, Lex Nimble Solutions'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.


Lex Nimble Solutions's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Lex Nimble Solutions's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Lex Nimble Solutions's Degree of Operating Leverage falls into.


;
;

Lex Nimble Solutions Degree of Operating Leverage Calculation

Lex Nimble Solutions'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
=( 5.08 (Mar. 2025) / 1.082 (Mar. 2024) - 1 )/( 71.66 (Mar. 2025) / 38.585 (Mar. 2024) - 1 )
=3.695/0.8572
=4.31***

* 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.


Lex Nimble Solutions  (BOM:541196) 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.


Lex Nimble Solutions Degree of Operating Leverage Related Terms

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


Lex Nimble Solutions Business Description

Traded in Other Exchanges
N/A
Address
Quardant 3, Module A1, Cyber Towers, 10th Floor, Hitech City, Madhapur, Hyderabad, TG, IND, 500 081
Lex Nimble Solutions Ltd is engaged in IT consulting, support and solutions and appraisal advisory, certification, training, and related services on quality models. The company's business segments are Software services and Consulting services. It derives key revenue from the Consulting services segment which covers IT staffing, Support Services and Payroll and accounting Services; Quality Certification, Consulting, and Training. Geographically, the group has customers located within India and other countries.

Lex Nimble Solutions Headlines

No Headlines