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SPHL (Springview Holdings) Degree of Operating Leverage : 3.91 (As of Dec. 2024)


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What is Springview Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Springview Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 3.91. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SPHL's Degree of Operating Leverage is ranked worse than
83.87% of 93 companies
in the Homebuilding & Construction industry
Industry Median: 1.13 vs SPHL: 3.91

Springview Holdings Degree of Operating Leverage Historical Data

The historical data trend for Springview 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.

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Springview Holdings Degree of Operating Leverage Chart

Springview Holdings Annual Data
Trend Dec22 Dec23 Dec24
Degree of Operating Leverage
- 3.27 3.91

Springview Holdings Semi-Annual Data
Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial - - 3.27 - 3.91

Competitive Comparison of Springview Holdings's Degree of Operating Leverage

For the Residential Construction subindustry, Springview 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.


Springview Holdings's Degree of Operating Leverage Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Springview Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Springview Holdings Degree of Operating Leverage Calculation

Springview Holdings'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
=( -0.806 (Dec. 2024) / 2.212 (Dec. 2023) - 1 )/( 6.525 (Dec. 2024) / 10.024 (Dec. 2023) - 1 )
=-1.3644/-0.3491
=3.91***

* 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.


Springview Holdings  (NAS:SPHL) 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.


Springview Holdings Degree of Operating Leverage Related Terms

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Springview Holdings Business Description

Traded in Other Exchanges
N/A
Address
203 Henderson Road, No.06-01, Henderson Industrial Park, Singapore, SGP, 159546
Springview Holdings Ltd is a company that conducts its operations through its indirect wholly-owned subsidiary which designs and constructs residential and commercial buildings in Singapore. It also provides four main types of works which includes new construction, reconstruction, Additions and Alterations (A&A), and other general contracting services such as renovation and design consultation. The company operates and manages its business as a single segment - in the development of construction projects. It derives maximum revenue from its Residential Customers.