GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Stolt-Nielsen Ltd (OTCPK:SOIEF) » Definitions » Degree of Operating Leverage

SOIEF (Stolt-Nielsen) Degree of Operating Leverage : 12.63 (As of Aug. 2024)


View and export this data going back to 2011. Start your Free Trial

What is Stolt-Nielsen Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Stolt-Nielsen's Degree of Operating Leverage for the quarter that ended in Aug. 2024 was 12.63. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SOIEF's Degree of Operating Leverage is ranked worse than
91.13% of 947 companies
in the Transportation industry
Industry Median: 1 vs SOIEF: 12.63

Stolt-Nielsen Degree of Operating Leverage Historical Data

The historical data trend for Stolt-Nielsen'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.

Stolt-Nielsen Degree of Operating Leverage Chart

Stolt-Nielsen Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.02 4.79 7.96 2.98 0.94

Stolt-Nielsen Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 1.24 0.94 -0.63 28.39 12.63

Competitive Comparison of Stolt-Nielsen's Degree of Operating Leverage

For the Marine Shipping subindustry, Stolt-Nielsen'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.


Stolt-Nielsen's Degree of Operating Leverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Stolt-Nielsen's Degree of Operating Leverage distribution charts can be found below:

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



Stolt-Nielsen Degree of Operating Leverage Calculation

Stolt-Nielsen's Degree of Operating Leverage for the quarter that ended in Aug. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 567.959 (Aug. 2024) / 406.523 (Aug. 2023) - 1 )/( 2876.45 (Aug. 2024) / 2857.54 (Aug. 2023) - 1 )
=0.3971/0.0066
=60.01***

* 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.


Stolt-Nielsen  (OTCPK:SOIEF) 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.


Stolt-Nielsen Degree of Operating Leverage Related Terms

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


Stolt-Nielsen Business Description

Traded in Other Exchanges
Address
2 Church Street, Clarendon House, Hamilton, BMU, HM 11
Stolt-Nielsen Ltd is a transportation and logistics company domiciled in Bermuda. The company organizes itself into five business segments: tankers, tank containers, terminals, Stolt-Nielsen Gas, and Stolt Sea Farm. The Group generates the majority of its operating revenue through its tanker segment from the transportation of liquids by sea and inland waterways under contracts of affreightment or through contracts on the spot market. Geographically, the company generates a majority of its revenue from the United States and the rest from Belgium. Malaysia, China, and other regions.

Stolt-Nielsen Headlines

From GuruFocus

Q3 2020 Stolt-Nielsen Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q3 2021 Stolt-Nielsen Ltd Earnings Presentation Transcript

By GuruFocus Research 02-15-2024

Q2 2019 Stolt-Nielsen Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q2 2024 Stolt-Nielsen Ltd Earnings Call Transcript

By GuruFocus Research 07-12-2024

Q1 2023 Stolt-Nielsen Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q4 2022 Stolt-Nielsen Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q4 2021 Stolt-Nielsen Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q1 2019 Stolt-Nielsen Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q4 2020 Stolt-Nielsen Ltd Earnings Call Transcript

By GuruFocus Research 02-15-2024

Q2 2021 Stolt-Nielsen Ltd Earnings Presentation Transcript

By GuruFocus Research 02-15-2024