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Ad-Sol Nissin (TSE:3837) Degree of Operating Leverage : 1.03 (As of Sep. 2024)


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What is Ad-Sol Nissin Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ad-Sol Nissin's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 1.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Ad-Sol Nissin's Degree of Operating Leverage or its related term are showing as below:

TSE:3837's Degree of Operating Leverage is ranked worse than
55.01% of 2665 companies
in the Software industry
Industry Median: 0.79 vs TSE:3837: 1.03

Ad-Sol Nissin Degree of Operating Leverage Historical Data

The historical data trend for Ad-Sol Nissin'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.

Ad-Sol Nissin Degree of Operating Leverage Chart

Ad-Sol Nissin 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 2.40 5.65 1.64 1.32 1.95

Ad-Sol Nissin 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 2.97 3.57 2.19 1.95 1.03

Competitive Comparison of Ad-Sol Nissin's Degree of Operating Leverage

For the Information Technology Services subindustry, Ad-Sol Nissin'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.


Ad-Sol Nissin's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Ad-Sol Nissin's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Ad-Sol Nissin's Degree of Operating Leverage falls into.


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Ad-Sol Nissin Degree of Operating Leverage Calculation

Ad-Sol Nissin'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
=( 728.546 (Sep. 2024) / 1389.02 (Sep. 2023) - 1 )/( 7242.635 (Sep. 2024) / 13440.945 (Sep. 2023) - 1 )
=-0.4755/-0.4612
=1.03***

* 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.


Ad-Sol Nissin  (TSE:3837) 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.


Ad-Sol Nissin Degree of Operating Leverage Related Terms

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


Ad-Sol Nissin Business Description

Industry
Traded in Other Exchanges
N/A
Address
Riverge Shinagawa 4 - chome, Minato - ku, Tokyo, JPN, 108-0075
Ad-Sol Nissin Corp develops information systems for enterprises. The company provides Social Infrastructure Business, Advanced Industry Business, IoX Integrated Engineering Business, and Security solutions. The Social Infrastructure Business develops system integration services in social infrastructures such as energy, road, aerospace, and others. Advanced Industry Business promotes Next Generation EV Vehicle, Industrial Equipment, and others. The IoX Integrated Engineering Business propose solutions such as AI. Big Data, Wireless, and others, and Security Solution protect IoT devices from cyber attacks.

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