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Value-Holdings AG (STU:VHO) Degree of Operating Leverage : 0.76 (As of Dec. 2023)


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What is Value-Holdings AG Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Value-Holdings AG's Degree of Operating Leverage for the quarter that ended in Dec. 2023 was 0.76. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:VHO's Degree of Operating Leverage is ranked worse than
50.08% of 621 companies
in the Capital Markets industry
Industry Median: 0.76 vs STU:VHO: 0.76

Value-Holdings AG Degree of Operating Leverage Historical Data

The historical data trend for Value-Holdings AG'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.

Value-Holdings AG Degree of Operating Leverage Chart

Value-Holdings AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.28 0.23 6.45 1.29 0.76

Value-Holdings AG Semi-Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
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 5.28 0.23 6.45 1.29 0.76

Competitive Comparison of Value-Holdings AG's Degree of Operating Leverage

For the Capital Markets subindustry, Value-Holdings AG'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.


Value-Holdings AG's Degree of Operating Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Value-Holdings AG's Degree of Operating Leverage distribution charts can be found below:

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


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Value-Holdings AG Degree of Operating Leverage Calculation

Value-Holdings AG's Degree of Operating Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 0.614 (Dec. 2023) / 0.76 (Dec. 2022) - 1 )/( 2.241 (Dec. 2023) / 2.998 (Dec. 2022) - 1 )
=-0.1921/-0.2525
=0.76***

* 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.


Value-Holdings AG  (STU:VHO) 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.


Value-Holdings AG Degree of Operating Leverage Related Terms

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


Value-Holdings AG Business Description

Traded in Other Exchanges
N/A
Address
Donauworther Strasse 3, Gersthofen, DEU, 86368
Value-Holdings AG is a German investment company that acquires shareholdings in listed medium-sized companies. It invests in its own portfolio, as well as managing third-party investment funds. The company along with its subsidiaries also advises institutional investors on investing as per the value-investing strategies. It manages two funds namely Value Holdings Germany Fund and Value Holdings Europe Fund.
Executives
Georg Geiger Board of Directors
Christoph Papst Supervisory Board

Value-Holdings AG Headlines

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