GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Uma Converter Ltd (NSE:UMA) » Definitions » Degree of Operating Leverage

Uma Converter (NSE:UMA) Degree of Operating Leverage : 32.01 (As of Mar. 2024)


View and export this data going back to 2022. Start your Free Trial

What is Uma Converter Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Uma Converter's Degree of Operating Leverage for the quarter that ended in Mar. 2024 was 32.01. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NSE:UMA's Degree of Operating Leverage is ranked worse than
94.3% of 386 companies
in the Packaging & Containers industry
Industry Median: 1.055 vs NSE:UMA: 32.01

Uma Converter Degree of Operating Leverage Historical Data

The historical data trend for Uma Converter'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.

Uma Converter Degree of Operating Leverage Chart

Uma Converter Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
- 0.60 1.26 7.43 32.01

Uma Converter Semi-Annual Data
Mar20 Mar21 Mar22 Sep22 Mar23 Sep23 Mar24
Degree of Operating Leverage Get a 7-Day Free Trial 1.26 - 7.43 - 32.01

Competitive Comparison of Uma Converter's Degree of Operating Leverage

For the Packaging & Containers subindustry, Uma Converter'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.


Uma Converter's Degree of Operating Leverage Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Uma Converter's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Uma Converter Degree of Operating Leverage Calculation

Uma Converter'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
=( 118.426 (Mar. 2024) / 74.783 (Mar. 2023) - 1 )/( 1808.75 (Mar. 2024) / 1776.362 (Mar. 2023) - 1 )
=0.5836/0.0182
=32.01***

* 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.


Uma Converter  (NSE:UMA) 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.


Uma Converter Degree of Operating Leverage Related Terms

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


Uma Converter Business Description

Traded in Other Exchanges
N/A
Address
Santej Road, Block No. 868, Near CNG Petrol Pump, Village-Santej, Taluka- Kalol, Gandhinagar, GJ, IND, 382721
Uma Converter Ltd is a manufacturer and exporter of flexible packaging material offering a wide range of customized packaging solutions for various industries such as food, beverages, pharmaceuticals, personal care, and many more. The product portfolio largely consists of multi-color pouches, stand-up pouches, zip-lock pouches, vacuum pouches, paper bags, e-commerce bags, and others.

Uma Converter Headlines

No Headlines