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Goodwin (CHIX:GDWNL) Degree of Operating Leverage : 10.66 (As of Oct. 2024)


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What is Goodwin Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Goodwin's Degree of Operating Leverage for the quarter that ended in Oct. 2024 was 10.66. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CHIX:GDWNl's Degree of Operating Leverage is ranked worse than
87.27% of 2938 companies
in the Industrial Products industry
Industry Median: 1.16 vs CHIX:GDWNl: 10.66

Goodwin Degree of Operating Leverage Historical Data

The historical data trend for Goodwin'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.

Goodwin Degree of Operating Leverage Chart

Goodwin Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.65 -3.52 2.36 0.47 6.07

Goodwin Semi-Annual Data
Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24 Oct24
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 Premium Member Only Premium Member Only 1.73 0.47 -0.30 6.07 10.66

Competitive Comparison of Goodwin's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Goodwin'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.


Goodwin's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Goodwin's Degree of Operating Leverage distribution charts can be found below:

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


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Goodwin Degree of Operating Leverage Calculation

Goodwin's Degree of Operating Leverage for the quarter that ended in Oct. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 32.86 (Oct. 2024) / 24.634 (Oct. 2023) - 1 )/( 200.066 (Oct. 2024) / 193.991 (Oct. 2023) - 1 )
=0.3339/0.0313
=10.66***

* 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.


Goodwin  (CHIX:GDWNl) 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.


Goodwin Degree of Operating Leverage Related Terms

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Goodwin Business Description

Traded in Other Exchanges
Address
Ivy House Foundry, Hanley, Stoke-on-Trent, Staffordshire, GBR, ST1 3NR
Goodwin PLC is a mechanical component manufacturing company. Its operating segments are the Mechanical Engineering segment which includes casting, valve, antenna, and pump manufacturer and general engineering, and the Refractory Engineering segment which consists of powder manufacture and mineral processing. The company generates the majority of its revenue from the Mechanical Engineering segment. Geographically, the company generates maximum revenue from the United Kingdom and also has its presence in Europe, the United States of America, Pacific Basin, and the rest of the world.

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