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AVSL Industries (NSE:AVSL) Degree of Operating Leverage : 3.59 (As of Mar. 2024)


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What is AVSL Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. AVSL Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2024 was 3.59. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NSE:AVSL's Degree of Operating Leverage is ranked worse than
70.75% of 547 companies
in the Conglomerates industry
Industry Median: 1.1 vs NSE:AVSL: 3.59

AVSL Industries Degree of Operating Leverage Historical Data

The historical data trend for AVSL Industries'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.

AVSL Industries Degree of Operating Leverage Chart

AVSL Industries 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 -17.18 179.49 0.26 -98.60 3.59

AVSL Industries Semi-Annual Data
Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 0.26 -2.80 -98.60 -7.07 3.59

Competitive Comparison of AVSL Industries's Degree of Operating Leverage

For the Conglomerates subindustry, AVSL Industries'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.


AVSL Industries's Degree of Operating Leverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, AVSL Industries's Degree of Operating Leverage distribution charts can be found below:

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


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AVSL Industries Degree of Operating Leverage Calculation

AVSL Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 58.896 (Mar. 2024) / 26.12 (Mar. 2023) - 1 )/( 1365.567 (Mar. 2024) / 1011.629 (Mar. 2023) - 1 )
=1.2548/0.3499
=3.59***

* 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.


AVSL Industries  (NSE:AVSL) 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.


AVSL Industries Degree of Operating Leverage Related Terms

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AVSL Industries Business Description

Traded in Other Exchanges
N/A
Address
Wazirpur District Centre, Unit No. 1001, 10th Floor, NDM-2, Netaji Subhash Place, Pitampura, Delhi, IND, 110034
AVSL Industries Ltd is engaged in the manufacturing and trading of PVC and Agriproducts. Its PVC products include PVC Compound, HDPE/LDPE Compound, PVC Filler, and HDPE/LDPE Tape, Polyester Tape and similar product, Aluminium Mylar tape, Marking tapes (used in cable wires as well as irrigation pipes) and others. The Company segment divided into three categories: Industrial Intermediate Goods - Raw Material for HT-LT Power Cable and Telecom Cables and irrigation products; Consumer Goods- Manufacturing of PVC/PP: Foam Board and Doors Frame and Others includes Agro commodities.

AVSL Industries Headlines

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