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Aferian (LSE:AFRN) Degree of Operating Leverage : 1.74 (As of Nov. 2024)


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What is Aferian Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Aferian's Degree of Operating Leverage for the quarter that ended in Nov. 2024 was 1.74. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LSE:AFRN's Degree of Operating Leverage is ranked worse than
56.33% of 987 companies
in the Media - Diversified industry
Industry Median: 1.17 vs LSE:AFRN: 1.74

Aferian Degree of Operating Leverage Historical Data

The historical data trend for Aferian'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.

Aferian Degree of Operating Leverage Chart

Aferian 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 4.06 0.77 -34.91 -5.19 1.74

Aferian 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 -34.91 57.65 -5.19 -3.42 1.74

Competitive Comparison of Aferian's Degree of Operating Leverage

For the Broadcasting subindustry, Aferian'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.


Aferian's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Aferian's Degree of Operating Leverage distribution charts can be found below:

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


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Aferian Degree of Operating Leverage Calculation

Aferian'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
=( -9.869 (Nov. 2024) / -50.197 (Nov. 2023) - 1 )/( 20.653 (Nov. 2024) / 38.448 (Nov. 2023) - 1 )
=-0.8034/-0.4628
=1.74***

* 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.


Aferian  (LSE:AFRN) 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.


Aferian Degree of Operating Leverage Related Terms

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Aferian Business Description

Traded in Other Exchanges
Address
1010 Cambourne Business Park, Cambourne, Cambridge, England, GBR, CB23 6DP
Aferian PLC is a software-led, world-wide Media Technology company. It delivers modern TV experiences integrating streaming and PayTV services. Its Next-Generation technology platforms enable operators, broadcasters, and content owners to provide viewers the choice, usability, and convenience. Geographically, it operates in USA, Latin America, Netherlands, Rest of EMEA, EMEA, and Rest of the World. The company operates through three segments: the development and sale of video streaming devices and solutions, including licensing and support services (Amino); development and sale of the 24i end-to-end video streaming platform and associated services; and central costs which comprise the costs of the Board. It derives maximum revenue from 24i segment.

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