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Three M Paper Boards (BOM:544214) Degree of Operating Leverage : 4.38 (As of Mar. 2025)


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What is Three M Paper Boards Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Three M Paper Boards's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Three M Paper Boards's Degree of Operating Leverage or its related term are showing as below:

BOM:544214's Degree of Operating Leverage is ranked worse than
70.67% of 283 companies
in the Forest Products industry
Industry Median: 1.16 vs BOM:544214: 4.38

Three M Paper Boards Degree of Operating Leverage Historical Data

The historical data trend for Three M Paper Boards'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.

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Three M Paper Boards Degree of Operating Leverage Chart

Three M Paper Boards Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
- 0.32 9.35 -2.56 4.38

Three M Paper Boards Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial 9.35 - -2.56 1.19 4.38

Competitive Comparison of Three M Paper Boards's Degree of Operating Leverage

For the Paper & Paper Products subindustry, Three M Paper Boards'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.


Three M Paper Boards's Degree of Operating Leverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Three M Paper Boards's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Three M Paper Boards's Degree of Operating Leverage falls into.


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Three M Paper Boards Degree of Operating Leverage Calculation

Three M Paper Boards'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
=( 182.44 (Mar. 2025) / 204.497 (Mar. 2024) - 1 )/( 2655.341 (Mar. 2025) / 2722.348 (Mar. 2024) - 1 )
=-0.1079/-0.0246
=4.38***

* 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.


Three M Paper Boards  (BOM:544214) 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.


Three M Paper Boards Degree of Operating Leverage Related Terms

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Three M Paper Boards Business Description

Traded in Other Exchanges
N/A
Address
5-B Naigaon Cross Road, A33 & 34, Floor-2, Royal Industrial Estate, Wadala, Mumbai, MH, IND, 400031
Three M Paper Boards Ltd is engaged in the business of manufacturing recycled paper-based Duplex Board products used in various packaging applications across industries such as food and beverage, pharmaceuticals, cosmetics, and consumer goods and supplies. The products are made out of recycled waste paper and are completely biodegradable. Its products include Royal WB, Royal GB, and Prima GB. The company is also engaged in the activity of generation of Wind Energy.

Three M Paper Boards Headlines

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