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Engro Polymer & Chemicals (KAR:EPCLPS.PFD) Degree of Operating Leverage : 21.47 (As of Mar. 2025)


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What is Engro Polymer & Chemicals Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Engro Polymer & Chemicals's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 21.47. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Engro Polymer & Chemicals's Degree of Operating Leverage or its related term are showing as below:

KAR:EPCLPS.PFD's Degree of Operating Leverage is ranked worse than
90.68% of 1524 companies
in the Chemicals industry
Industry Median: 0.995 vs KAR:EPCLPS.PFD: 21.47

Engro Polymer & Chemicals Degree of Operating Leverage Historical Data

The historical data trend for Engro Polymer & Chemicals'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.

Engro Polymer & Chemicals Degree of Operating Leverage Chart

Engro Polymer & Chemicals 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 -8.14 1.12 -0.69 6.15 11.95

Engro Polymer & Chemicals Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 0.74 -2.25 5.85 11.95 21.47

Competitive Comparison of Engro Polymer & Chemicals's Degree of Operating Leverage

For the Chemicals subindustry, Engro Polymer & Chemicals'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.


Engro Polymer & Chemicals's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Engro Polymer & Chemicals's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Engro Polymer & Chemicals's Degree of Operating Leverage falls into.


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Engro Polymer & Chemicals Degree of Operating Leverage Calculation

Engro Polymer & Chemicals's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 3547.051 (Mar. 2025) / 15435.709 (Mar. 2024) - 1 )/( 77002.185 (Mar. 2025) / 79867.312 (Mar. 2024) - 1 )
=-0.7702/-0.0359
=21.47***

* 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.


Engro Polymer & Chemicals  (KAR:EPCLPS.PFD) 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.


Engro Polymer & Chemicals Degree of Operating Leverage Related Terms

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Engro Polymer & Chemicals Business Description

Traded in Other Exchanges
Address
Marine Drive, 8th Floor, Block 4, The Harbour Front Building, Clifton, Karachi, SD, PAK, 75600
Engro Polymer & Chemicals Ltd is a chlor vinyl chemical company. The activity of the firm is to produce and market chlor-vinyl products, which include polyvinyl chloride (PVC), vinyl chloride monomer (VCM), caustic soda, hydrochloric acid, and sodium hypochlorite. Engro Polymer operates in three segments: Poly Vinyl Chloride (PVC) and Allied Chemicals segment which generates the majority of revenue from manufacturing and selling PVC and allied chemicals to various industrial customers, including pipe manufacturers, shoe, and packaging industry. The Caustic Soda and Allied Chemicals segment manufactures and sells caustic soda and other chemicals to the textile and soap industry. The power supply segment supplies surplus power generated from its power plants to Engro Fertilizers Limited.

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