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PBT Group (JSE:PBG) Degree of Operating Leverage : 11.20 (As of Sep. 2024)


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What is PBT Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. PBT Group's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 11.20. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

JSE:PBG's Degree of Operating Leverage is ranked worse than
87.58% of 2665 companies
in the Software industry
Industry Median: 0.78 vs JSE:PBG: 11.20

PBT Group Degree of Operating Leverage Historical Data

The historical data trend for PBT Group'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.

PBT Group Degree of Operating Leverage Chart

PBT Group Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.25 2.08 1.80 1.22 -1.26

PBT Group 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 1.30 1.22 1.42 -1.26 11.20

Competitive Comparison of PBT Group's Degree of Operating Leverage

For the Information Technology Services subindustry, PBT Group'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.


PBT Group's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, PBT Group's Degree of Operating Leverage distribution charts can be found below:

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


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PBT Group Degree of Operating Leverage Calculation

PBT Group'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
=( 137.496 (Sep. 2024) / 146.598 (Sep. 2023) - 1 )/( 1073.61 (Sep. 2024) / 1079.593 (Sep. 2023) - 1 )
=-0.0621/-0.0055
=11.20***

* 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.


PBT Group  (JSE:PBG) 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.


PBT Group Degree of Operating Leverage Related Terms

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PBT Group Business Description

Industry
Traded in Other Exchanges
N/A
Address
2 Mews Close, Waterford Mews, PBT House, Century City, Cape Town, WC, ZAF, 7441
PBT Group Ltd is a South African-based company that offers information management and data analytics services. It serves finance, insurance, telecommunications, retail, petroleum and medical healthcare industries. The services provided by the company include data engineering, analytics and visualization, artificial intelligence, managed solutions, advisory and strategic services, application development and others. Its operating segments are based on geographical locations namely South Africa, Europe and the United Kingdom. The segment includes consulting and implementation of data, management information software and healthcare administration services provided in the Republic of South Africa, Europe and the United Kingdom.

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