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Azeus Systems Holdings (SGX:BBW) Degree of Operating Leverage : 2.58 (As of Sep. 2024)


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What is Azeus Systems Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Azeus Systems Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 2.58. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SGX:BBW's Degree of Operating Leverage is ranked worse than
70.31% of 2668 companies
in the Software industry
Industry Median: 0.81 vs SGX:BBW: 2.58

Azeus Systems Holdings Degree of Operating Leverage Historical Data

The historical data trend for Azeus Systems Holdings'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.

Azeus Systems Holdings Degree of Operating Leverage Chart

Azeus Systems Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.41 -11.46 2.97 0.58 2.45

Azeus Systems Holdings Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 1.73 0.58 1.93 2.45 2.58

Competitive Comparison of Azeus Systems Holdings's Degree of Operating Leverage

For the Information Technology Services subindustry, Azeus Systems Holdings'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.


Azeus Systems Holdings's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Azeus Systems Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Azeus Systems Holdings Degree of Operating Leverage Calculation

Azeus Systems Holdings'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
=( 19.99 (Sep. 2024) / 10.797 (Sep. 2023) - 1 )/( 61.772 (Sep. 2024) / 46.445 (Sep. 2023) - 1 )
=0.8514/0.33
=2.58***

* 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.


Azeus Systems Holdings  (SGX:BBW) 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.


Azeus Systems Holdings Degree of Operating Leverage Related Terms

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Azeus Systems Holdings Business Description

Traded in Other Exchanges
N/A
Address
979 Kings Road, 33rd Floor Cambridge House, Taikoo Place, Quarry Bay, Hong Kong, HKG
Azeus Systems Holdings Ltd is made up of a group of companies, which are mainly known as IT solutions providers. It is a company that operates mainly in Europe, Asia, the Middle East, Australia, North and South America, Africa, and the Caribbean. It operates through two segments, IT Services and Azeus Product. The IT Service segment includes designing and implementing a broad range of IT software and systems, as well as developing and integrating various software programmes of IT systems to fulfill the outsourcing needs of its customers. Its Product includes developing innovative technologies and solutions such as proprietary products known as AzeusCare an enterprise level social care management system, and Convene an award-winning Board Portal.