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Maruchiyo Yamaokaya (TSE:3399) Degree of Operating Leverage : 2.66 (As of Jan. 2025)


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What is Maruchiyo Yamaokaya Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Maruchiyo Yamaokaya's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 2.66. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSE:3399's Degree of Operating Leverage is ranked worse than
62.9% of 345 companies
in the Restaurants industry
Industry Median: 1.24 vs TSE:3399: 2.66

Maruchiyo Yamaokaya Degree of Operating Leverage Historical Data

The historical data trend for Maruchiyo Yamaokaya'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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Maruchiyo Yamaokaya Degree of Operating Leverage Chart

Maruchiyo Yamaokaya 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 -43.48 24.88 0.11 5.12 2.66

Maruchiyo Yamaokaya 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 3.04 5.12 4.29 6.09 2.66

Competitive Comparison of Maruchiyo Yamaokaya's Degree of Operating Leverage

For the Restaurants subindustry, Maruchiyo Yamaokaya'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.


Maruchiyo Yamaokaya's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Maruchiyo Yamaokaya's Degree of Operating Leverage distribution charts can be found below:

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


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Maruchiyo Yamaokaya Degree of Operating Leverage Calculation

Maruchiyo Yamaokaya'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
=( 3860.446 (Jan. 2025) / 2129.113 (Jan. 2024) - 1 )/( 34585.11 (Jan. 2025) / 26494.136 (Jan. 2024) - 1 )
=0.8132/0.3054
=2.66***

* 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.


Maruchiyo Yamaokaya  (TSE:3399) 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.


Maruchiyo Yamaokaya Degree of Operating Leverage Related Terms

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Maruchiyo Yamaokaya Business Description

Traded in Other Exchanges
N/A
Address
7-1-chome, Higashi Ganboshi East Hall, 4-32, Hokkaido, Sapporo, JPN, 007-0827
Maruchiyo Yamaokaya Corp is engaged in operating a direct chain ramen noodle restaurants called Ramen Yamaokaya mainly in Hokkaido and Kanto area. It has more than twenty-five types of regular menu. Its menu includes soy sauce, miso, salt, special miso, premium salt pork.

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