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Synectics (FRA:RNR) Degree of Operating Leverage : 4.09 (As of Nov. 2024)


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What is Synectics Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Synectics's Degree of Operating Leverage for the quarter that ended in Nov. 2024 was 4.09. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRA:RNR's Degree of Operating Leverage is ranked worse than
75.98% of 999 companies
in the Business Services industry
Industry Median: 0.97 vs FRA:RNR: 4.09

Synectics Degree of Operating Leverage Historical Data

The historical data trend for Synectics'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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Synectics Degree of Operating Leverage Chart

Synectics Annual Data
Trend Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.39 5.15 -30.85 17.87 4.09

Synectics Semi-Annual Data
May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24
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 -30.85 -0.50 17.87 16.38 4.09

Competitive Comparison of Synectics's Degree of Operating Leverage

For the Security & Protection Services subindustry, Synectics'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.


Synectics's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Synectics's Degree of Operating Leverage distribution charts can be found below:

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


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Synectics Degree of Operating Leverage Calculation

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

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 5.143 (Nov. 2024) / 3.165 (Nov. 2023) - 1 )/( 66.971 (Nov. 2024) / 56.461 (Nov. 2023) - 1 )
=0.625/0.1861
=3.36***

* 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.


Synectics  (FRA:RNR) 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.


Synectics Degree of Operating Leverage Related Terms

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Synectics Business Description

Traded in Other Exchanges
Address
3-4 Broadfield Close, Synectics House, Sheffield, South Yorkshire, GBR, S8 0XN
Synectics PLC is a UK-based company, which operates in the security and surveillance systems. It business of the group is operated through Systems and Security segments. Its systems segment develops, integrates, and delivers resilient, flexible electronic surveillance solutions based on its proprietary hardware and software, and operates globally across all sectors. The Security segment focuses on the design, delivery, maintenance, and management of end-to-end security and surveillance systems for high-security & public space applications, and operates principally in the United Kingdom. Its operations are spread across UK and Europe, North America, the Middle East & Africa, and Asia Pacific.