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Transcorp Power (NSA:TRANSPOWER) Degree of Operating Leverage : 0.73 (As of Mar. 2025)


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What is Transcorp Power Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Transcorp Power's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.73. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NSA:TRANSPOWER's Degree of Operating Leverage is ranked better than
52.25% of 488 companies
in the Utilities - Regulated industry
Industry Median: 0.835 vs NSA:TRANSPOWER: 0.73

Transcorp Power Degree of Operating Leverage Historical Data

The historical data trend for Transcorp Power'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.

Transcorp Power Degree of Operating Leverage Chart

Transcorp Power Annual Data
Trend Dec23 Dec24
Degree of Operating Leverage
- 0.90

Transcorp Power Quarterly Data
Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only - - - 0.90 0.73

Competitive Comparison of Transcorp Power's Degree of Operating Leverage

For the Utilities - Regulated Electric subindustry, Transcorp Power'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.


Transcorp Power's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Transcorp Power's Degree of Operating Leverage distribution charts can be found below:

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


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Transcorp Power Degree of Operating Leverage Calculation

Transcorp Power's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 138235.706 (Mar. 2025) / 86572.099 (Mar. 2024) - 1 )/( 343523.546 (Mar. 2025) / 188944.449 (Mar. 2024) - 1 )
=0.5968/0.8181
=0.73***

* 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.


Transcorp Power  (NSA:TRANSPOWER) 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.


Transcorp Power Degree of Operating Leverage Related Terms

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Transcorp Power Business Description

Traded in Other Exchanges
N/A
Address
Kilometer 12 warri patani road, Delta State, Ughelli, NGA
Transcorp Power PLC is engaged in power sector in Nigeria. It is a gas-fired open cycle thermal power plant located in Ughelli. It is fossil-fuel-based power-generating station in the country. The plant has an installed capacity of 972 MW and can generate 2,500 GWh of electricity annually. Transcorp power plant uses natural gas supplied by Nigeria, Nigeria Gas Infrastructure Company (NGIC) as the primary fuel for power generation. The Company has two operating segments: International - this segment is responsible for the sale of electric power to customers outside Nigeria and Local - this segment is responsible for the sale of electric power to customers within Nigeria. Key revenue is generated from Local sales.

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