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Swashthik Plascon (BOM:544035) Degree of Operating Leverage : 0.68 (As of Sep. 2024)


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What is Swashthik Plascon Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Swashthik Plascon's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 0.68. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BOM:544035's Degree of Operating Leverage is ranked better than
58.66% of 387 companies
in the Packaging & Containers industry
Industry Median: 1.39 vs BOM:544035: 0.68

Swashthik Plascon Degree of Operating Leverage Historical Data

The historical data trend for Swashthik Plascon'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.

Swashthik Plascon Degree of Operating Leverage Chart

Swashthik Plascon Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
- -0.03 - -

Swashthik Plascon Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24
Degree of Operating Leverage Get a 7-Day Free Trial -0.03 - - - 0.68

Competitive Comparison of Swashthik Plascon's Degree of Operating Leverage

For the Packaging & Containers subindustry, Swashthik Plascon'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.


Swashthik Plascon's Degree of Operating Leverage Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Swashthik Plascon's Degree of Operating Leverage distribution charts can be found below:

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



Swashthik Plascon Degree of Operating Leverage Calculation

Swashthik Plascon'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
=( 144.556 (Sep. 2024) / 86.493 (Sep. 2023) - 1 )/( 1315.834 (Sep. 2024) / 662.312 (Sep. 2023) - 1 )
=0.6713/0.9867
=0.68***

* 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.


Swashthik Plascon  (BOM:544035) 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.


Swashthik Plascon Degree of Operating Leverage Related Terms

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Swashthik Plascon Business Description

Traded in Other Exchanges
N/A
Address
No. A75 - A76, PIPDIC Electronic Park, Thirubuvanai, Mannadipet Commune, Puducherry, KL, IND, 605107
Swashthik Plascon Ltd is mainly engaged in the business of manufacturing a wide range of PET bottles and PET preforms which includes PET bottles for pharmaceutical applications, liquor applications, FMCG packaging, household applications, dish wash liquid packaging, repellent dispensers etc and PET preforms for soft drinks bottles, packaged drinking water bottle and juice bottles.

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