GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Taiyo Kisokogyo Co Ltd (TSE:1758) » Definitions » Degree of Operating Leverage

Taiyo Kisokogyo Co (TSE:1758) Degree of Operating Leverage : -1.36 (As of Jan. 2025)


View and export this data going back to 1997. Start your Free Trial

What is Taiyo Kisokogyo Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Taiyo Kisokogyo Co's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was -1.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Taiyo Kisokogyo Co's Degree of Operating Leverage or its related term are showing as below:

TSE:1758's Degree of Operating Leverage is ranked better than
77.86% of 1667 companies
in the Construction industry
Industry Median: 0.99 vs TSE:1758: -1.36

Taiyo Kisokogyo Co Degree of Operating Leverage Historical Data

The historical data trend for Taiyo Kisokogyo Co'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.

Taiyo Kisokogyo Co Degree of Operating Leverage Chart

Taiyo Kisokogyo Co Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.07 3.32 3.16 69.54 -1.36

Taiyo Kisokogyo Co Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Jan25
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 -3.63 69.54 22.62 5.70 -1.36

Competitive Comparison of Taiyo Kisokogyo Co's Degree of Operating Leverage

For the Engineering & Construction subindustry, Taiyo Kisokogyo Co'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.


Taiyo Kisokogyo Co's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Taiyo Kisokogyo Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Taiyo Kisokogyo Co's Degree of Operating Leverage falls into.


;
;

Taiyo Kisokogyo Co Degree of Operating Leverage Calculation

Taiyo Kisokogyo Co's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 351.891 (Jan. 2025) / 319.488 (Jan. 2024) - 1 )/( 13482.097 (Jan. 2025) / 14571.647 (Jan. 2024) - 1 )
=0.1014/-0.0748
=-1.36***

* 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.


Taiyo Kisokogyo Co  (TSE:1758) 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.


Taiyo Kisokogyo Co Degree of Operating Leverage Related Terms

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


Taiyo Kisokogyo Co Business Description

Traded in Other Exchanges
N/A
Address
Nakagawa-ku Yanagimori cho 107, 1st Floor, Taiyo building, Aichi prefecture, Nagoya, JPN, 454-0871
Taiyo Kisokogyo Co Ltd is a Japanese construction company engaged in the civil engineering and construction activities. The company is involved in the engineering work, stonecutter construction, pavement construction and steel structures construction.

Taiyo Kisokogyo Co Headlines

No Headlines