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Natural Gas Distribution Co (SAU:9516) Degree of Operating Leverage : -0.39 (As of Dec. 2024)


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What is Natural Gas Distribution Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Natural Gas Distribution Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -0.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Natural Gas Distribution Co's Degree of Operating Leverage or its related term are showing as below:

SAU:9516's Degree of Operating Leverage is ranked better than
69.4% of 487 companies
in the Utilities - Regulated industry
Industry Median: 0.86 vs SAU:9516: -0.39

Natural Gas Distribution Co Degree of Operating Leverage Historical Data

The historical data trend for Natural Gas Distribution Co'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.

Natural Gas Distribution Co Degree of Operating Leverage Chart

Natural Gas Distribution Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- -107.53 20.46 7.54 -0.39

Natural Gas Distribution Co Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only 20.46 0.90 7.54 -48.60 -0.39

Competitive Comparison of Natural Gas Distribution Co's Degree of Operating Leverage

For the Utilities - Regulated Gas subindustry, Natural Gas Distribution Co'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.


Natural Gas Distribution Co's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Natural Gas Distribution Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Natural Gas Distribution Co's Degree of Operating Leverage falls into.


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Natural Gas Distribution Co Degree of Operating Leverage Calculation

Natural Gas Distribution Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 3.932 (Dec. 2024) / 4.24 (Dec. 2023) - 1 )/( 109.921 (Dec. 2024) / 92.485 (Dec. 2023) - 1 )
=-0.0726/0.1885
=-0.39***

* 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.


Natural Gas Distribution Co  (SAU:9516) 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.


Natural Gas Distribution Co Degree of Operating Leverage Related Terms

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Natural Gas Distribution Co Business Description

Traded in Other Exchanges
N/A
Address
Al-Kharj Road, P.O. 000512, Second Industrial City, Riyadh, SAU, 11382
Natural Gas Distribution Co owns and maintains natural gas networks. The company.s activity is the distribution of gaseous fuels through pipes and gas pipelines, their maintenance and repair, the wholesale sale of gaseous fuels, and the transportation of natural gas through pipelines. Its core business is to supply the factories located in the second industrial city of Riyadh. The company is supplied with natural gas from Saudi Aramco through the main pipeline. Its services include the operation and maintenance of natural gas networks.

Natural Gas Distribution Co Headlines

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