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Hvax Technologies (NSE:HVAX) Degree of Operating Leverage : 7.56 (As of Mar. 2024)


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What is Hvax Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hvax Technologies's Degree of Operating Leverage for the quarter that ended in Mar. 2024 was 7.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NSE:HVAX's Degree of Operating Leverage is ranked worse than
82.12% of 151 companies
in the Industrial Distribution industry
Industry Median: 1.03 vs NSE:HVAX: 7.56

Hvax Technologies Degree of Operating Leverage Historical Data

The historical data trend for Hvax Technologies'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.

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Hvax Technologies Degree of Operating Leverage Chart

Hvax Technologies Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
- 0.39 0.66 7.56

Hvax Technologies Semi-Annual Data
Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage - 0.39 0.66 7.56

Competitive Comparison of Hvax Technologies's Degree of Operating Leverage

For the Industrial Distribution subindustry, Hvax Technologies'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.


Hvax Technologies's Degree of Operating Leverage Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Hvax Technologies's Degree of Operating Leverage distribution charts can be found below:

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


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Hvax Technologies Degree of Operating Leverage Calculation

Hvax Technologies'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
=( 138.368 (Mar. 2024) / 75.773 (Mar. 2023) - 1 )/( 1049.603 (Mar. 2024) / 946.192 (Mar. 2023) - 1 )
=0.8261/0.1093
=7.56***

* 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.


Hvax Technologies  (NSE:HVAX) 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.


Hvax Technologies Degree of Operating Leverage Related Terms

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Hvax Technologies Business Description

Traded in Other Exchanges
N/A
Address
I-Think Techno Campus, 601, 6th Floor, Lodha Supremus, Kanjurmarg (East), Mumbai, MH, IND, 400042
Hvax Technologies Ltd is engaged in the business of turnkey projects on engineering, procurement, and execution of controlled environment infrastructure and cleanrooms; design, engineering, and consultancy services for pharma and healthcare companies. As a part of turnkey projects, the company supplies the following third-party manufactured products: Cleanroom wall panels, Cleanroom ceiling panels, Covings, riser panels, cleanroom doors, flooring systems, pass boxes, air showers, LT/HT electrical panels, pre-fabricated galvanized iron (GI) ducts, air handling units, chillers, Building Management Systems (BMS) Equipment, and Utility generation and distribution equipment.

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