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T&S Group (TSE:4055) Degree of Operating Leverage : 0.99 (As of Mar. 2025)


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What is T&S Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. T&S Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.99. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for T&S Group's Degree of Operating Leverage or its related term are showing as below:

TSE:4055's Degree of Operating Leverage is ranked better than
66.93% of 2667 companies
in the Software industry
Industry Median: 0.82 vs TSE:4055: 0.99

T&S Group Degree of Operating Leverage Historical Data

The historical data trend for T&S Group'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.

T&S Group Degree of Operating Leverage Chart

T&S Group Annual Data
Trend Nov18 Nov19 Nov20 Nov21 Nov22
Degree of Operating Leverage
- - - 1.47 2.57

T&S Group Quarterly Data
Nov18 Nov19 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Mar25
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 1.59 0.63 0.01 -0.48 0.99

Competitive Comparison of T&S Group's Degree of Operating Leverage

For the Information Technology Services subindustry, T&S Group'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.


T&S Group's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, T&S Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where T&S Group's Degree of Operating Leverage falls into.


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T&S Group Degree of Operating Leverage Calculation

T&S Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 175.999 (Mar. 2025) / 643.186 (Feb. 2024) - 1 )/( 932.655 (Mar. 2025) / 3474.852 (Feb. 2024) - 1 )
=-0.7264/-0.7316
=0.99***

* 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.


T&S Group  (TSE:4055) 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.


T&S Group Degree of Operating Leverage Related Terms

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T&S Group Business Description

Industry
Traded in Other Exchanges
N/A
Address
3-6-3 Minatomirai, MM Park Building 11th floor, Nishi-ku Yokohama, Kanagawa, Yokkaichi, JPN, 220-0012
T&S Group Inc formerly T&S inc is a provider of system development, system operation, maintenance and infrastructure design for companies and semiconductor fabrication plants, Artificial Intelligence(AI) related software development. The company's business is divided into Solution category; Semiconductor category; and Advanced technology solution category. The solution category focuses on contracts (development, operation and maintenance) for corporate customers. The semiconductor category is in charge of overall IT infrastructure operation support such as maintenance and operation services for factory systems and IT help desks. The Advanced Technology Solution Category is used in industrial fields AI, image processing/recognition/machine learning, robots, automated driving.

T&S Group Headlines

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