GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Net Servicos De Comunicacao SA (BSP:NETC4.PFD) » Definitions » Degree of Operating Leverage

Net Servicos De Comunicacao (BSP:NETC4.PFD) Degree of Operating Leverage : 0.00 (As of Dec. 2013)


View and export this data going back to . Start your Free Trial

What is Net Servicos De Comunicacao Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Net Servicos De Comunicacao's Degree of Operating Leverage for the quarter that ended in Dec. 2013 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Net Servicos De Comunicacao's Degree of Operating Leverage or its related term are showing as below:

BSP:NETC4.PFD's Degree of Operating Leverage is not ranked *
in the Media - Diversified industry.
Industry Median: 1.15
* Ranked among companies with meaningful Degree of Operating Leverage only.

Net Servicos De Comunicacao Degree of Operating Leverage Historical Data

The historical data trend for Net Servicos De Comunicacao'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.

Net Servicos De Comunicacao Degree of Operating Leverage Chart

Net Servicos De Comunicacao Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - -

Net Servicos De Comunicacao Semi-Annual Data
Dec96 Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of Net Servicos De Comunicacao's Degree of Operating Leverage

For the Broadcasting subindustry, Net Servicos De Comunicacao'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.


Net Servicos De Comunicacao's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Net Servicos De Comunicacao's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Net Servicos De Comunicacao's Degree of Operating Leverage falls into.


;
;

Net Servicos De Comunicacao Degree of Operating Leverage Calculation

Net Servicos De Comunicacao's Degree of Operating Leverage for the quarter that ended in Dec. 2013 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1010.917 (Dec. 2013) / 941.614 (Dec. 2012) - 1 )/( 9708.757 (Dec. 2013) / 7939.196 (Dec. 2012) - 1 )
=0.0736/0.2229
=0.33***

* 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.


Net Servicos De Comunicacao  (BSP:NETC4.PFD) 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.


Net Servicos De Comunicacao Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Net Servicos De Comunicacao's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Net Servicos De Comunicacao Business Description

Traded in Other Exchanges
N/A
Address
Net Servicos de Comunicacao SA through its holdings provides pay-television and pay-per-view programming, digital cable, high-definition cable television with digital video recorder, broadband Internet service & fixed line telephony service.

Net Servicos De Comunicacao Headlines

No Headlines