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Veritaas Advertising (NSE:VERITAAS) Degree of Operating Leverage : 0.38 (As of Sep. 2024)


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What is Veritaas Advertising Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Veritaas Advertising's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 0.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NSE:VERITAAS's Degree of Operating Leverage is ranked better than
59.55% of 984 companies
in the Media - Diversified industry
Industry Median: 1.22 vs NSE:VERITAAS: 0.38

Veritaas Advertising Degree of Operating Leverage Historical Data

The historical data trend for Veritaas Advertising'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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Veritaas Advertising Degree of Operating Leverage Chart

Veritaas Advertising Annual Data
Trend Mar21 Mar22 Mar23
Degree of Operating Leverage
- -0.59 -

Veritaas Advertising Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Sep24
Degree of Operating Leverage - -0.59 - - 0.38

Competitive Comparison of Veritaas Advertising's Degree of Operating Leverage

For the Advertising Agencies subindustry, Veritaas Advertising'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.


Veritaas Advertising's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Veritaas Advertising's Degree of Operating Leverage distribution charts can be found below:

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


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Veritaas Advertising Degree of Operating Leverage Calculation

Veritaas Advertising's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 11.817 (Sep. 2024) / 9.958 (Sep. 2023) - 1 )/( 69.098 (Sep. 2024) / 46.23 (Sep. 2023) - 1 )
=0.1867/0.4947
=0.38***

* 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.


Veritaas Advertising  (NSE:VERITAAS) 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.


Veritaas Advertising Degree of Operating Leverage Related Terms

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Veritaas Advertising Business Description

Traded in Other Exchanges
N/A
Address
Gariahat South Road, 38/2A, Dhakuria, Rash Behari Avenue, Kolkata, WB, IND, 700029
Veritaas Advertising Ltd is an integrated advertising agency offering 360-degree services across multiple platforms. It operate/advertise in police booths and outdoor hoardings and offer marketing and advertising services through the following platforms OOH, Transit Media and Events. It provide high-end ecosystem and end-to-end advertising solutions platform for advertising media services consisting of Brand Strategy, Events, Outdoor (OOH) Media services which covers advertisement modes such as police booth hoardings, Newspapers insertions, Brochures, and display of Outdoor Hoardings, etc.

Veritaas Advertising Headlines

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