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NHPEF (New Hope) Degree of Operating Leverage : 1.58 (As of Jul. 2024)


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What is New Hope Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. New Hope's Degree of Operating Leverage for the quarter that ended in Jul. 2024 was 1.58. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NHPEF's Degree of Operating Leverage is ranked better than
54.03% of 124 companies
in the Other Energy Sources industry
Industry Median: 1.975 vs NHPEF: 1.58

New Hope Degree of Operating Leverage Historical Data

The historical data trend for New Hope'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.

New Hope Degree of Operating Leverage Chart

New Hope Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.41 51.39 6.74 1.47 1.58

New Hope Semi-Annual Data
Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24
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 6.74 - 1.47 - 1.58

Competitive Comparison of New Hope's Degree of Operating Leverage

For the Thermal Coal subindustry, New Hope'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.


New Hope's Degree of Operating Leverage Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, New Hope's Degree of Operating Leverage distribution charts can be found below:

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



New Hope Degree of Operating Leverage Calculation

New Hope's Degree of Operating Leverage for the quarter that ended in Jul. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 470.815 (Jul. 2024) / 1048.484 (Jul. 2023) - 1 )/( 1177.675 (Jul. 2024) / 1821.078 (Jul. 2023) - 1 )
=-0.551/-0.3533
=1.56***

* 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.


New Hope  (OTCPK:NHPEF) 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.


New Hope Degree of Operating Leverage Related Terms

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New Hope Business Description

Traded in Other Exchanges
Address
175 Eagle Street, Level 18, Brisbane, QLD, AUS, 4000
New Hope Corporation is an Australian thermal coal miner. It has two operating mines: the 100%-owned New Acland coal mine in Queensland and its 80%-owned Bengalla coal mine in New South Wales. The company should sell around 13 million metric tons of thermal coal annually from fiscal 2028, up from around 8.7 million in fiscal 2024, driven by the construction and ramp up of New Acland Stage 3. The vast majority of New Hope's production is sold into seaborne thermal coal export markets. Reserves at New Acland and Bengalla are sufficient to support multidecade mine lives. New Hope also has significant undeveloped coal resources in Queensland, as well as a 20% holding in the Malabar-Maxwell metallurgical coal mine, which began production in 2023.

New Hope Headlines

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