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OlaTech Solutions (BOM:543578) Degree of Operating Leverage : 0.86 (As of Mar. 2025)


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What is OlaTech Solutions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. OlaTech Solutions's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BOM:543578's Degree of Operating Leverage is ranked worse than
51.43% of 2666 companies
in the Software industry
Industry Median: 0.785 vs BOM:543578: 0.86

OlaTech Solutions Degree of Operating Leverage Historical Data

The historical data trend for OlaTech 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.

OlaTech Solutions Degree of Operating Leverage Chart

OlaTech Solutions Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial 2.20 -3.28 1.32 1.50 0.86

OlaTech Solutions Semi-Annual Data
Mar20 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 1.32 0.66 1.50 2.64 0.86

Competitive Comparison of OlaTech Solutions's Degree of Operating Leverage

For the Information Technology Services subindustry, OlaTech 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.


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

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

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


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OlaTech Solutions Degree of Operating Leverage Calculation

OlaTech 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
=( 57.131 (Mar. 2025) / 42.816 (Mar. 2024) - 1 )/( 210.409 (Mar. 2025) / 151.581 (Mar. 2024) - 1 )
=0.3343/0.3881
=0.86***

* 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.


OlaTech Solutions  (BOM:543578) 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.


OlaTech Solutions Degree of Operating Leverage Related Terms

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OlaTech Solutions Business Description

Traded in Other Exchanges
N/A
Address
Thane-Belapur Road, Office No. 310, 3rd Floor, Rupa Solitaire, Millennium Business Park, Mahape, Navi Mumbai, MH, IND, 400 710
OlaTech Solutions Ltd is engaged in the business of Data Centre, Enterprise, Telecom, and IT software solutions in the Operations Support System and Business Support System segment. The company's software solutions are offered under the registered trademark Epiphany. It offers software solutions such as NOC tools, network monitoring, management and analytics, system integration services, telecom tower installation, network deployment, server virtualization services, IT equipment installation and management services, data center infrastructure management solutions, and others. The company has clients across different verticals such as Telcos, ISPs, Enterprises, Data Centre Service Providers, and Public Sector.

OlaTech Solutions Headlines

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