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Afcom Holdings (BOM:544224) Degree of Operating Leverage : 1.44 (As of Mar. 2025)


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What is Afcom Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Afcom Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BOM:544224's Degree of Operating Leverage is ranked worse than
61.76% of 978 companies
in the Transportation industry
Industry Median: 0.87 vs BOM:544224: 1.44

Afcom Holdings Degree of Operating Leverage Historical Data

The historical data trend for Afcom Holdings'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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Afcom Holdings Degree of Operating Leverage Chart

Afcom Holdings Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
- -1.06 1.27 1.22 1.44

Afcom Holdings Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial 1.27 - 1.22 2.59 1.44

Competitive Comparison of Afcom Holdings's Degree of Operating Leverage

For the Airlines subindustry, Afcom Holdings'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.


Afcom Holdings's Degree of Operating Leverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Afcom Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Afcom Holdings Degree of Operating Leverage Calculation

Afcom Holdings'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
=( 685.415 (Mar. 2025) / 362.584 (Mar. 2024) - 1 )/( 2387.18 (Mar. 2025) / 1475.455 (Mar. 2024) - 1 )
=0.8904/0.6179
=1.44***

* 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.


Afcom Holdings  (BOM:544224) 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.


Afcom Holdings Degree of Operating Leverage Related Terms

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Afcom Holdings Business Description

Traded in Other Exchanges
N/A
Address
Plot No.16(NP), 3rd Floor, Indiqube Palmyra, SIDCO Industrial Estate, Ekkattuthangal, Guindy, Chennai, TN, IND, 600032
Afcom Holdings Ltd is engaged in the carriage of cargo on an airport-to-airport basis. Its business is guided by three operating principles: People-centricity, Growth through partnership, and Efficiency, always. The company has developed a wide range of service options to meet the growing needs of the customers. It provides cargo solutions and products across various countries via International Hubs. The company offers notable products that include General Cargo, Flying Fresh, Flying Pharma, Flying Priority, Fly Courier, Project Cargo, Dangerous Goods and High-Value Cargo.

Afcom Holdings Headlines

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