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Centro Escolar University (PHS:CEU) Degree of Operating Leverage : 0.67 (As of Feb. 2025)


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What is Centro Escolar University Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Centro Escolar University's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 0.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Centro Escolar University's Degree of Operating Leverage or its related term are showing as below:

PHS:CEU's Degree of Operating Leverage is ranked better than
53.06% of 245 companies
in the Education industry
Industry Median: 0.79 vs PHS:CEU: 0.67

Centro Escolar University Degree of Operating Leverage Historical Data

The historical data trend for Centro Escolar University'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.

Centro Escolar University Degree of Operating Leverage Chart

Centro Escolar University Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 May22 May23 May24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.85 -5.49 -1.44 4.70 2.93

Centro Escolar University Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 3.23 2.93 1.47 2.45 0.67

Competitive Comparison of Centro Escolar University's Degree of Operating Leverage

For the Education & Training Services subindustry, Centro Escolar University'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.


Centro Escolar University's Degree of Operating Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Centro Escolar University's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Centro Escolar University's Degree of Operating Leverage falls into.


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Centro Escolar University Degree of Operating Leverage Calculation

Centro Escolar University's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 728.418 (Feb. 2025) / 634.023 (Feb. 2024) - 1 )/( 2561.504 (Feb. 2025) / 2097.819 (Feb. 2024) - 1 )
=0.1489/0.221
=0.67***

* 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.


Centro Escolar University  (PHS:CEU) 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.


Centro Escolar University Degree of Operating Leverage Related Terms

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Centro Escolar University Business Description

Traded in Other Exchanges
N/A
Address
9 Mendiola Street, San Miguel, Manila, RIZ, PHL, 1005
Centro Escolar University is a Philippines-based institution of higher learning. The company is engaged in establishing, maintaining and operating an educational institution for the training of the youth in all branches of the arts and sciences, offering classes at the tertiary level. The University operates in four geographical segments such as Mendiola, Malolos, Makati-Gil Puyat and Makati Legaspi campus.

Centro Escolar University Headlines

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