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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Melco International Development's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 10.96. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Melco International Development's Degree of Operating Leverage or its related term are showing as below:
MDEVF's Degree of Operating Leverage is ranked worse than 83.61% of 830
companies
in the Travel & Leisure industry
Industry Median: 1.04
vs MDEVF: 10.96
Melco International Development (OTCPK:MDEVF) 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.
Melco International Development Degree of Operating Leverage Related Terms
Melco International Development Degree of Operating Leverage Historical Data
* 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.
Melco International Development Degree of Operating Leverage Chart
MDEVF vs LVS, MGM, WYNN: Degree of Operating Leverage Comparison
For the Resorts & Casinos subindustry, Melco International Development'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.
Melco International Development Degree of Operating Leverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco International Development's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Melco International Development's Degree of Operating Leverage falls into.
* 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.
What does a Degree of Operating Leverage of 10.96 mean?
Melco International Development (MDEVF) has a Degree of Operating Leverage of 10.96 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Melco International Development and its competitors. According to the industry distribution chart, Melco International Development ranks #694 out of 830 companies in the Travel & Leisure industry, placing it in the top 83.6%.
Is Melco International Development's Degree of Operating Leverage too high?
Melco International Development's current Degree of Operating Leverage is 10.96. The Travel & Leisure industry median Degree of Operating Leverage is 1.04. Melco International Development's value of 10.96 is 953.8% above this industry median. Based on the distribution chart, Melco International Development ranks #694 out of 830 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Melco International Development has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Melco International Development's Degree of Operating Leverage compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, Melco International Development ranks #694 out of 830 companies for Degree of Operating Leverage. This places Melco International Development in the lower half of its industry. The industry median Degree of Operating Leverage is 1.04. Melco International Development's value of 10.96 is 953.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Travel & Leisure company?
The median Degree of Operating Leverage among Travel & Leisure companies is 1.04, based on 830 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melco International Development's current Degree of Operating Leverage of 10.96 is 953.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Melco International Development and its competitors. For the Travel & Leisure industry, the median Degree of Operating Leverage is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco International Development's current Degree of Operating Leverage is 10.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melco International Development stock overvalued right now?
Based on GuruFocus' analysis, Melco International Development (MDEVF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.65, compared to a current price of $0.44 — trading 31.6% below its estimated fair value. The current Degree of Operating Leverage is 10.96 and 953.8% above the Travel & Leisure industry median of 1.04. Melco International Development's overall GF Score™ is 47/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Melco International Development (MDEVF), the current Degree of Operating Leverage is 10.96 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Melco International Development (MDEVF) Overvalued in 2026?
Based on GuruFocus' analysis, Melco International Development stock appears to be undervalued.
The current stock price of $0.44 is trading 31.6% below its estimated GF Value™ of $0.65.
GuruFocus considers Melco International Development to be Possible Value Trap.
Key valuation signals for MDEVF:
Degree of Operating Leverage: 10.96
GF Value™: $0.65 vs. price of $0.44 (31.6% below fair value)
Industry Position: 953.8% above the Travel & Leisure median (#694 of 830)
No single metric tells the full story. See the MDEVF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melco International Development Ltd is a developer, owner, and operator of an international network of casino gaming and entertainment resorts. Its segments are the Casino and Hospitality segment, which generates maximum revenue, comprises the operation of casinos and the provision of hospitality services and facilities through Melco Resorts. Its resorts and properties include City of Dreams Cotai, Altira Macau, and Mocha Clubs in Macau; City of Dreams Manila in the Philippines; and City of Dreams Mediterranean and Cyprus Casinos in Cyprus. The Other segment comprises investments in a joint venture and associates, and other activities. Its operations are mainly located in Macau, the Philippines, Cyprus, and other regions, with maximum revenue derived from Macau.
47GF Score
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