GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Polaris Ltd (SGX:5BI) » Definitions » Degree of Operating Leverage

Polaris (SGX:5BI) Degree of Operating Leverage : -1.73 (As of Dec. 2024)


View and export this data going back to 1993. Start your Free Trial

What is Polaris Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Polaris's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -1.73. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SGX:5BI's Degree of Operating Leverage is ranked better than
77.9% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 1.29 vs SGX:5BI: -1.73

Polaris Degree of Operating Leverage Historical Data

The historical data trend for Polaris'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.

Polaris Degree of Operating Leverage Chart

Polaris Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.27 -3.59 68.56 2.87 -1.73

Polaris Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Sep23 Dec23 Jun24 Sep24 Dec24
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 - 2.87 -27.39 - -1.73

Competitive Comparison of Polaris's Degree of Operating Leverage

For the Specialty Retail subindustry, Polaris'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.


Polaris's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

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

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


;
;

Polaris Degree of Operating Leverage Calculation

Polaris'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
=( -2.005 (Dec. 2024) / -2.248 (Dec. 2023) - 1 )/( 23.499 (Dec. 2024) / 22.119 (Dec. 2023) - 1 )
=-0.1081/0.0624
=-1.73***

* 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.


Polaris  (SGX:5BI) 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.


Polaris Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Polaris's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Polaris Business Description

Traded in Other Exchanges
N/A
Address
81 Ubi Avenue 4, Number 03-11 UB.One, Singapore, SGP, 408830
Polaris Ltd is an investment holding company. The segments of the company include the Pre-owned luxury goods segment, which engages in the business of importing and exporting pre-owned luxury goods and premium lifestyle products; the Consumer electronics segment, which engages in the corporate sale of telecommunication, IT, educational robotics, and consumer electronics products; Customer services segment, which provides after-market services to end consumers for equipment repairs, refurbishments, and technical services; and Corporate segment, which is involved in Group-level corporate services, treasury functions, and investments. The green protein business engages in the cultivation and sales of black soldier fly. The majority of revenue is from Pre-owned luxury goods, from Indonesia.

Polaris Headlines

No Headlines