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Multi-Chem (FRA:MQR1) Degree of Operating Leverage : 2.11 (As of Dec. 2024)


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What is Multi-Chem Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Multi-Chem's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 2.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRA:MQR1's Degree of Operating Leverage is ranked worse than
64.24% of 2413 companies
in the Hardware industry
Industry Median: 1 vs FRA:MQR1: 2.11

Multi-Chem Degree of Operating Leverage Historical Data

The historical data trend for Multi-Chem'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.

Multi-Chem Degree of Operating Leverage Chart

Multi-Chem Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.20 1.49 -12.75 6.47 2.11

Multi-Chem Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Sep23 Dec23 Jun24 Sep24 Dec24
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 - 6.47 - 0.73 2.11

Competitive Comparison of Multi-Chem's Degree of Operating Leverage

For the Electronics & Computer Distribution subindustry, Multi-Chem'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.


Multi-Chem's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Multi-Chem's Degree of Operating Leverage distribution charts can be found below:

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


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Multi-Chem Degree of Operating Leverage Calculation

Multi-Chem's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 28.565 (Dec. 2024) / 25.726 (Dec. 2023) - 1 )/( 483.5 (Dec. 2024) / 453.248 (Dec. 2023) - 1 )
=0.1104/0.0667
=1.65***

* 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.


Multi-Chem  (FRA:MQR1) 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.


Multi-Chem Degree of Operating Leverage Related Terms

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Multi-Chem Business Description

Industry
Traded in Other Exchanges
Address
18 Boon Lay Way, No. 05-113 TradeHub 21, Singapore, SGP, 609966
Multi-Chem Ltd is a drilling service provider and distributes specialty chemicals and materials to printed circuit board manufacturers. It operates in two business segments: PCB business and IT business. PCB business, which provides precision drilling services to PCB fabricators and distributes specialty chemicals and other PCB-related products and equipment to PCB manufacturers. IT business, which relates to the distribution of hardware and software relating to Internet and network products and the provision of maintenance services for such products. The company derives mahortiy of its revenue from IT business.

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