GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Taiyo Kagaku Co Ltd (NGO:2902) » Definitions » Degree of Operating Leverage

Taiyo Kagaku Co (NGO:2902) Degree of Operating Leverage : 1.85 (As of Sep. 2024)


View and export this data going back to 1986. Start your Free Trial

What is Taiyo Kagaku Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Taiyo Kagaku Co's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 1.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NGO:2902's Degree of Operating Leverage is ranked worse than
60.82% of 1521 companies
in the Chemicals industry
Industry Median: 1.01 vs NGO:2902: 1.85

Taiyo Kagaku Co Degree of Operating Leverage Historical Data

The historical data trend for Taiyo Kagaku Co'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.

Taiyo Kagaku Co Degree of Operating Leverage Chart

Taiyo Kagaku Co 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 24.76 -0.71 6.73 -3.35 -2.20

Taiyo Kagaku Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 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 -1.81 -0.74 0.74 -2.20 1.85

Competitive Comparison of Taiyo Kagaku Co's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Taiyo Kagaku Co'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.


Taiyo Kagaku Co's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Taiyo Kagaku Co's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Taiyo Kagaku Co Degree of Operating Leverage Calculation

Taiyo Kagaku Co'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
=( 309.298 (Sep. 2024) / 4107.434 (Sep. 2023) - 1 )/( 23148.841 (Sep. 2024) / 46379.743 (Sep. 2023) - 1 )
=-0.9247/-0.5009
=1.85***

* 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.


Taiyo Kagaku Co  (NGO:2902) 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.


Taiyo Kagaku Co Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Taiyo Kagaku Co's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Taiyo Kagaku Co Business Description

Traded in Other Exchanges
N/A
Address
No. 800 Yamada-cho Yokkaichi, Mie, JPN
Taiyo Kagaku Co Ltd is engaged in the development and production of emulsifiers, stabilizers, egg and tea-based ingredients, and functional ingredients for the food, beverage, and pharmaceutical industries across the globe. Taiyo focuses on the development of innovative ingredients, derived from natural sources, to further develop the body's ability to protect and manage one's health. Its products include Sunphenon; Teavigo; Sunphenon EGCg; and Sunphenon XLB-100. The Sunphenon series, including the Teavigo brand, consists of standardized tea polyphenols and natural catechins that have been shown to have numerous physiological benefits, including antioxidant, anti-microbial, deodorant and thermogenic activities.

Taiyo Kagaku Co Headlines

No Headlines