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Muthoot Microfin (BOM:544055) Degree of Operating Leverage : 2.22 (As of Mar. 2025)


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What is Muthoot Microfin Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Muthoot Microfin's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.22. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BOM:544055's Degree of Operating Leverage is ranked worse than
73.56% of 382 companies
in the Credit Services industry
Industry Median: 0.855 vs BOM:544055: 2.22

Muthoot Microfin Degree of Operating Leverage Historical Data

The historical data trend for Muthoot Microfin'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.

Muthoot Microfin Degree of Operating Leverage Chart

Muthoot Microfin Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
- 18.19 2.59 2.28 2.22

Muthoot Microfin Quarterly Data
Mar21 Mar22 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 2.28 2.58 3.60 3.40 2.22

Competitive Comparison of Muthoot Microfin's Degree of Operating Leverage

For the Credit Services subindustry, Muthoot Microfin'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.


Muthoot Microfin's Degree of Operating Leverage Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Muthoot Microfin's Degree of Operating Leverage distribution charts can be found below:

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


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Muthoot Microfin Degree of Operating Leverage Calculation

Muthoot Microfin'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
=( 7716.8 (Mar. 2025) / 5146.72 (Mar. 2024) - 1 )/( 24684.83 (Mar. 2025) / 20155.7 (Mar. 2024) - 1 )
=0.4994/0.2247
=2.22***

* 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.


Muthoot Microfin  (BOM:544055) 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.


Muthoot Microfin Degree of Operating Leverage Related Terms

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Muthoot Microfin Business Description

Traded in Other Exchanges
Address
Muthoot Towers M.G. Road, 5th Floor, Kochi, KL, IND, 682035
Muthoot Microfin Ltd is a microfinance institution providing micro-loans to women customers with a focus on rural regions of India. The company offers loan products such as group loans for livelihood solutions such as income generating loans, Pragathi loans, and individual loans; life betterment solutions including mobile phones loans, solar lighting product loans, and household appliances product loans; health and hygiene loans such as sanitation improvement loans; and secured loans in the form of gold loans and Muthoot Small & Growing Business loans.

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