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Tertiary Minerals (FRA:TMU) Degree of Operating Leverage : -2.80 (As of Sep. 2024)


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What is Tertiary Minerals Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Tertiary Minerals's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -2.80. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRA:TMU's Degree of Operating Leverage is ranked better than
82.1% of 732 companies
in the Metals & Mining industry
Industry Median: 0.955 vs FRA:TMU: -2.80

Tertiary Minerals Degree of Operating Leverage Historical Data

The historical data trend for Tertiary Minerals'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.

Tertiary Minerals Degree of Operating Leverage Chart

Tertiary Minerals Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.90 2.64 5.72 -1.62 -2.80

Tertiary Minerals Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 5.72 -1.47 -1.62 -0.52 -2.80

Competitive Comparison of Tertiary Minerals's Degree of Operating Leverage

For the Other Industrial Metals & Mining subindustry, Tertiary Minerals'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.


Tertiary Minerals's Degree of Operating Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Tertiary Minerals's Degree of Operating Leverage distribution charts can be found below:

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


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Tertiary Minerals Degree of Operating Leverage Calculation

Tertiary Minerals's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.657 (Sep. 2024) / -0.5 (Sep. 2023) - 1 )/( 0.194 (Sep. 2024) / 0.21 (Sep. 2023) - 1 )
=0.314/-0.0762
=-4.12***

* 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.


Tertiary Minerals  (FRA:TMU) 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.


Tertiary Minerals Degree of Operating Leverage Related Terms

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Tertiary Minerals Business Description

Traded in Other Exchanges
Address
Queens Avenue, Silk Point, Macclesfield, Cheshire, GBR, SK10 2BB
Tertiary Minerals PLC is involved in the identification, acquisition, exploration and development of mineral deposits including precious metals, base metals, and industrial minerals in Nevada, the USA, and Northern Europe. The company has one reporting segment, the management of exploration projects, which is supported by a Head Office function. Its projects include Konkola West Copper Project, Mukai Copper Project, Mushima North Copper Project, Jacks Copper Project, Lubuila Project, Mupala Project, Brunton Pass Copper-Gold Project, Storuman Fluorspar Project, Lassedalen Fluorspar Project.

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