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Keyware Solutions (TSE:3799) Degree of Operating Leverage : 0.36 (As of Sep. 2024)


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What is Keyware Solutions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Keyware Solutions's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 0.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSE:3799's Degree of Operating Leverage is ranked better than
56.24% of 2662 companies
in the Software industry
Industry Median: 0.795 vs TSE:3799: 0.36

Keyware Solutions Degree of Operating Leverage Historical Data

The historical data trend for Keyware Solutions'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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Keyware Solutions Degree of Operating Leverage Chart

Keyware Solutions Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.14 38.22 0.54 -0.91 6.84

Keyware Solutions Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Sep24
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 4.25 3.96 4.80 6.84 0.36

Competitive Comparison of Keyware Solutions's Degree of Operating Leverage

For the Information Technology Services subindustry, Keyware Solutions'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.


Keyware Solutions's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Keyware Solutions's Degree of Operating Leverage distribution charts can be found below:

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


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Keyware Solutions Degree of Operating Leverage Calculation

Keyware Solutions's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 755.96 (Sep. 2024) / 899.461 (Sep. 2023) - 1 )/( 11051.991 (Sep. 2024) / 19658.25 (Sep. 2023) - 1 )
=-0.1595/-0.4378
=0.36***

* 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.


Keyware Solutions  (TSE:3799) 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.


Keyware Solutions Degree of Operating Leverage Related Terms

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Keyware Solutions Business Description

Industry
Traded in Other Exchanges
N/A
Address
Kamikitazawa 5-37-18, Setagaya-ku, Tokyo, JPN, 156-8588
Keyware Solutions Inc is a Japan-based Information Technology (IT) service management company. It operates in two divisions including system development business and Integrated IT service business. System development business is mainly engaged in the construction and development of applications and systems related to social infrastructure. Integrated IT service division offers packaged software, hardware and support services. The company mainly caters to financial, distribution, manufacturing, communication, transportation, reporting, medical, government agency, and service industries.

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