GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » ASK Automotive Ltd (NSE:ASKAUTOLTD) » Definitions » Degree of Operating Leverage

ASK Automotive (NSE:ASKAUTOLTD) Degree of Operating Leverage : 1.96 (As of Mar. 2025)


View and export this data going back to 2023. Start your Free Trial

What is ASK Automotive Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ASK Automotive's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.96. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NSE:ASKAUTOLTD's Degree of Operating Leverage is ranked worse than
62.56% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1.01 vs NSE:ASKAUTOLTD: 1.96

ASK Automotive Degree of Operating Leverage Historical Data

The historical data trend for ASK Automotive'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.

ASK Automotive Degree of Operating Leverage Chart

ASK Automotive Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
- -0.70 1.86 2.32 1.96

ASK Automotive Quarterly Data
Mar21 Mar22 Jun22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 2.32 1.73 2.47 1.92 1.96

Competitive Comparison of ASK Automotive's Degree of Operating Leverage

For the Auto Parts subindustry, ASK Automotive'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.


ASK Automotive's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, ASK Automotive's Degree of Operating Leverage distribution charts can be found below:

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


;
;

ASK Automotive Degree of Operating Leverage Calculation

ASK Automotive'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
=( 3610.4 (Mar. 2025) / 2585.3 (Mar. 2024) - 1 )/( 36008.3 (Mar. 2025) / 29945.5 (Mar. 2024) - 1 )
=0.3965/0.2025
=1.96***

* 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.


ASK Automotive  (NSE:ASKAUTOLTD) 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.


ASK Automotive Degree of Operating Leverage Related Terms

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


ASK Automotive Business Description

Traded in Other Exchanges
Address
Sector 5, IMT Manesar, Plot No - 13-14, Gurgaon, HR, IND, 122 050
ASK Automotive Ltd is a manufacturer of brake-shoe and advanced braking systems for two-wheelers in India. The product range of the company includes AB systems; aluminum lightweight precision, wheel assembly to 2W OEMs; and safety control cables The company operates in India as well as overseas.

ASK Automotive Headlines

No Headlines