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Systemair AB (OSTO:SYSR) Degree of Operating Leverage : 12.72 (As of Oct. 2024)


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What is Systemair AB Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Systemair AB's Degree of Operating Leverage for the quarter that ended in Oct. 2024 was 12.72. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OSTO:SYSR's Degree of Operating Leverage is ranked worse than
89.33% of 1669 companies
in the Construction industry
Industry Median: 0.95 vs OSTO:SYSR: 12.72

Systemair AB Degree of Operating Leverage Historical Data

The historical data trend for Systemair AB'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.

Systemair AB Degree of Operating Leverage Chart

Systemair AB Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.63 -0.31 2.31 3.09 -17.81

Systemair AB Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
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 8.92 12.07 -17.81 22.46 12.72

Competitive Comparison of Systemair AB's Degree of Operating Leverage

For the Building Products & Equipment subindustry, Systemair AB'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.


Systemair AB's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Systemair AB's Degree of Operating Leverage distribution charts can be found below:

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



Systemair AB Degree of Operating Leverage Calculation

Systemair AB's Degree of Operating Leverage for the quarter that ended in Oct. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1002.2 (Oct. 2024) / 1633.7 (Oct. 2023) - 1 )/( 12152.4 (Oct. 2024) / 12533.3 (Oct. 2023) - 1 )
=-0.3865/-0.0304
=12.72***

* 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.


Systemair AB  (OSTO:SYSR) 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.


Systemair AB Degree of Operating Leverage Related Terms

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Systemair AB Business Description

Industry
Traded in Other Exchanges
Address
Industrivagen 3, Skinnskatteberg, SWE, SE-739 30
Systemair AB is a building material company that develops, manufactures, and markets ventilation products. The company's products under its flagship Systemair brand include air conditioning units, air curtains, air distribution products, and energy-efficient fans. The company also markets products under its Frico, VEAB Heat Tech AB, Fantech, and Menerga segments. Frico manufactures air curtains and heating products, while VEAB primarily develops heating products. The Fantech segment markets to the residential sector, in contrast to Systemair's commercial base. Menerga produces high-efficiency air-handling units for specialized buildings such as museums, airports, and swimming pool halls. The company generates the majority of its revenue from Europe.

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