GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Mortgage Advice Bureau (Holdings) PLC (LSE:MAB1) » Definitions » Degree of Operating Leverage

Mortgage Advice Bureau (Holdings) (LSE:MAB1) Degree of Operating Leverage : 2.83 (As of Dec. 2024)


View and export this data going back to 2014. Start your Free Trial

What is Mortgage Advice Bureau (Holdings) Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Mortgage Advice Bureau (Holdings)'s Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 2.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Mortgage Advice Bureau (Holdings)'s Degree of Operating Leverage or its related term are showing as below:

LSE:MAB1's Degree of Operating Leverage is ranked worse than
80.43% of 46 companies
in the Banks industry
Industry Median: 0.985 vs LSE:MAB1: 2.83

Mortgage Advice Bureau (Holdings) Degree of Operating Leverage Historical Data

The historical data trend for Mortgage Advice Bureau (Holdings)'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.

Mortgage Advice Bureau (Holdings) Degree of Operating Leverage Chart

Mortgage Advice Bureau (Holdings) 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 -4.77 2.01 -0.91 0.28 2.83

Mortgage Advice Bureau (Holdings) Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 -0.91 -0.80 0.28 -0.68 2.83

Competitive Comparison of Mortgage Advice Bureau (Holdings)'s Degree of Operating Leverage

For the Mortgage Finance subindustry, Mortgage Advice Bureau (Holdings)'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.


Mortgage Advice Bureau (Holdings)'s Degree of Operating Leverage Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Mortgage Advice Bureau (Holdings)'s Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Mortgage Advice Bureau (Holdings)'s Degree of Operating Leverage falls into.


;
;

Mortgage Advice Bureau (Holdings) Degree of Operating Leverage Calculation

Mortgage Advice Bureau (Holdings)'s Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 24.779 (Dec. 2024) / 18.788 (Dec. 2023) - 1 )/( 266.537 (Dec. 2024) / 239.533 (Dec. 2023) - 1 )
=0.3189/0.1127
=2.83***

* 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.


Mortgage Advice Bureau (Holdings)  (LSE:MAB1) 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.


Mortgage Advice Bureau (Holdings) Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Mortgage Advice Bureau (Holdings)'s Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Mortgage Advice Bureau (Holdings) Business Description

Traded in Other Exchanges
Address
Capital House, Pride Place, Pride Park, Derby, GBR, DE24 8QR
Mortgage Advice Bureau (Holdings) PLC provides mortgage advice and also advice on protection and general insurance products. The group offers advice on residential and buy-to-let mortgage products. The company has developed customized support services for intermediary firms that operate in estate agencies, new build, buy-to-let, mortgage shops and telephone-based mortgage services. The company derives its revenues from mortgage procuration fees, insurance commissions, and client fees. Mortgage procuration fees generate the majority of the revenues.

Mortgage Advice Bureau (Holdings) Headlines

No Headlines