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Power and Water Utility Company for Jubail and Yanbu (SAU:2083) Degree of Operating Leverage : -2.02 (As of Sep. 2024)


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What is Power and Water Utility Company for Jubail and Yanbu Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Power and Water Utility Company for Jubail and Yanbu's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -2.02. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Power and Water Utility Company for Jubail and Yanbu's Degree of Operating Leverage or its related term are showing as below:

SAU:2083's Degree of Operating Leverage is ranked better than
76.45% of 484 companies
in the Utilities - Regulated industry
Industry Median: 0.785 vs SAU:2083: -2.02

Power and Water Utility Company for Jubail and Yanbu Degree of Operating Leverage Historical Data

The historical data trend for Power and Water Utility Company for Jubail and Yanbu'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.

Power and Water Utility Company for Jubail and Yanbu Degree of Operating Leverage Chart

Power and Water Utility Company for Jubail and Yanbu Annual Data
Trend Dec21 Dec22 Dec23
Degree of Operating Leverage
- - 3.56

Power and Water Utility Company for Jubail and Yanbu Quarterly Data
Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.01 3.56 1,142.40 -7.11 -2.02

Competitive Comparison of Power and Water Utility Company for Jubail and Yanbu's Degree of Operating Leverage

For the Utilities - Diversified subindustry, Power and Water Utility Company for Jubail and Yanbu'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.


Power and Water Utility Company for Jubail and Yanbu's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Power and Water Utility Company for Jubail and Yanbu's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Power and Water Utility Company for Jubail and Yanbu's Degree of Operating Leverage falls into.



Power and Water Utility Company for Jubail and Yanbu Degree of Operating Leverage Calculation

Power and Water Utility Company for Jubail and Yanbu'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
=( 882.428 (Sep. 2024) / 1015.112 (Sep. 2023) - 1 )/( 6799.426 (Sep. 2024) / 6385.634 (Sep. 2023) - 1 )
=-0.1307/0.0648
=-2.02***

* 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.


Power and Water Utility Company for Jubail and Yanbu  (SAU:2083) 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.


Power and Water Utility Company for Jubail and Yanbu Degree of Operating Leverage Related Terms

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Power and Water Utility Company for Jubail and Yanbu Business Description

Traded in Other Exchanges
N/A
Address
Road 100, Support Industrial Zone, Jubail Industrial City, SAU, 35717
Power and Water Utility Company for Jubail and Yanbu engages in providing integrated utility services to all sectors in the Industrial Cities of the Kingdom of Saudi Arabia. The company's principal activities are water supply, sewage activities, waste management and treatment, electricity, gas, steam and air conditioning supply, process industry, and construction. The company's operating segment includes power, water, gas, JWAP, tawreed, and corporate and others. Majority of revenue is generated from water segment.

Power and Water Utility Company for Jubail and Yanbu Headlines

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