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McMillan Shakespeare (STU:NMN) Degree of Operating Leverage : 1.05 (As of Dec. 2024)


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What is McMillan Shakespeare Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. McMillan Shakespeare's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.05. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:NMN's Degree of Operating Leverage is ranked worse than
51.35% of 1001 companies
in the Business Services industry
Industry Median: 0.99 vs STU:NMN: 1.05

McMillan Shakespeare Degree of Operating Leverage Historical Data

The historical data trend for McMillan Shakespeare'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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McMillan Shakespeare Degree of Operating Leverage Chart

McMillan Shakespeare Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.53 6.32 0.12 0.07 2.85

McMillan Shakespeare Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 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 -0.31 0.07 -0.48 2.85 1.05

Competitive Comparison of McMillan Shakespeare's Degree of Operating Leverage

For the Staffing & Employment Services subindustry, McMillan Shakespeare'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.


McMillan Shakespeare's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, McMillan Shakespeare's Degree of Operating Leverage distribution charts can be found below:

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


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McMillan Shakespeare Degree of Operating Leverage Calculation

McMillan Shakespeare'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
=( 101.347 (Dec. 2024) / 74.505 (Dec. 2023) - 1 )/( 265.26 (Dec. 2024) / 197.448 (Dec. 2023) - 1 )
=0.3603/0.3434
=1.05***

* 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.


McMillan Shakespeare  (STU:NMN) 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.


McMillan Shakespeare Degree of Operating Leverage Related Terms

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McMillan Shakespeare Business Description

Traded in Other Exchanges
Address
360 Elizabeth Street, Level 21, The Tower, Melbourne Central, Melbourne, VIC, AUS, 3000
McMillan Shakespeare is a provider of salary packaging, novated leasing, disability plan management and support co-ordination, and fleet management services. It actively works to cross-sell its products to clients, for example, selling its salary packaging services to its fleet management customers in Australia and New Zealand. McMillan dominates Australia's salary packaging market together with Smartgroup (also covered by Morningstar), and is also a large provider of novated leasing services by volumes—together with Smartgroup and SG Fleet. The group has three operating segments: group remuneration services, asset management services, and plan and support services. Most of the group's revenue is generated from the group remuneration services segment.

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