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Synoptics Technologies (NSE:SYNOPTICS) Degree of Operating Leverage : 0.44 (As of Mar. 2024)


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What is Synoptics Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Synoptics Technologies's Degree of Operating Leverage for the quarter that ended in Mar. 2024 was 0.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NSE:SYNOPTICS's Degree of Operating Leverage is ranked better than
55.16% of 2665 companies
in the Software industry
Industry Median: 0.79 vs NSE:SYNOPTICS: 0.44

Synoptics Technologies Degree of Operating Leverage Historical Data

The historical data trend for Synoptics 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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Synoptics Technologies Degree of Operating Leverage Chart

Synoptics Technologies Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
- 0.47 1.19 159.67 0.44

Synoptics Technologies Semi-Annual Data
Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage - 0.47 1.19 159.67 0.44

Competitive Comparison of Synoptics Technologies's Degree of Operating Leverage

For the Information Technology Services subindustry, Synoptics 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.


Synoptics Technologies's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Synoptics Technologies's Degree of Operating Leverage distribution charts can be found below:

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


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Synoptics Technologies Degree of Operating Leverage Calculation

Synoptics 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
=( 102.763 (Mar. 2024) / 110.293 (Mar. 2023) - 1 )/( 432.432 (Mar. 2024) / 510.937 (Mar. 2023) - 1 )
=-0.0683/-0.1536
=0.44***

* 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.


Synoptics Technologies  (NSE:SYNOPTICS) 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.


Synoptics Technologies Degree of Operating Leverage Related Terms

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Synoptics Technologies Business Description

Traded in Other Exchanges
N/A
Address
301, A-Wing, 3rd Floor, Interface 16, Mindspace, Malad (West), Mumbai, MH, IND, 400064
Synoptics Technologies Ltd is an IT Services company offering solutions in the areas of IT Infrastructure like connectivity to the Branches, Supply, implementation and support of the network equipment needed to run the IT setup like routers, switches, etc. The company designs the solution for customers who need to put their applications on Cloud. It helps with the application migration and manages the setup in the cloud. It aims to reduce the Total Cost of Ownership (TCO) and increase Return on Investment (RoI) for its customers to adopt any kind of Digital Transformation use case with its technology-led and innovation-driven approach.

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