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Almunajem Foods (SAU:4162) Degree of Operating Leverage : -35.80 (As of Mar. 2025)


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What is Almunajem Foods Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Almunajem Foods's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -35.80. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SAU:4162's Degree of Operating Leverage is ranked better than
95.05% of 303 companies
in the Retail - Defensive industry
Industry Median: 0.91 vs SAU:4162: -35.80

Almunajem Foods Degree of Operating Leverage Historical Data

The historical data trend for Almunajem Foods'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.

Almunajem Foods Degree of Operating Leverage Chart

Almunajem Foods Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- -15.59 4.44 -0.10 -1.72

Almunajem Foods Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 1.95 7.12 9.10 -1.72 -35.80

Competitive Comparison of Almunajem Foods's Degree of Operating Leverage

For the Food Distribution subindustry, Almunajem Foods'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.


Almunajem Foods's Degree of Operating Leverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Almunajem Foods's Degree of Operating Leverage distribution charts can be found below:

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


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Almunajem Foods Degree of Operating Leverage Calculation

Almunajem Foods's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 229.945 (Mar. 2025) / 340.913 (Mar. 2024) - 1 )/( 3345.528 (Mar. 2025) / 3315.384 (Mar. 2024) - 1 )
=-0.3255/0.0091
=-35.80***

* 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.


Almunajem Foods  (SAU:4162) 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.


Almunajem Foods Degree of Operating Leverage Related Terms

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Almunajem Foods Business Description

Traded in Other Exchanges
N/A
Address
7510 Takhassusi Street, P O Box 1544, North Mathar, Riyadh, SAU, 11441
Almunajem Foods is a food company engaged in the wholesale and retail trading of fruits, vegetables, cold and frozen poultry and meat, and caned, food products. Asmak, Coopoliva (Agro Sevilla), Dari, Doux, Fletcher, Lamb Weston, Marietta, Montana and others are some of the brands of the company. The Group operates in three regions in the Kingdom of Saudi Arabia, which are its reportable segments: Central region, Eastern and Northern regions, and Western and Southern regions.

Almunajem Foods Headlines

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