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Nichias (TSE:5393) Degree of Operating Leverage : 6.44 (As of Mar. 2025)


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What is Nichias Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Nichias's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSE:5393's Degree of Operating Leverage is ranked worse than
79.52% of 547 companies
in the Conglomerates industry
Industry Median: 1.12 vs TSE:5393: 6.44

Nichias Degree of Operating Leverage Historical Data

The historical data trend for Nichias'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.

Nichias Degree of Operating Leverage Chart

Nichias Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.76 7.33 0.05 5.13 6.44

Nichias Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Sep24 Dec24 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 0.59 5.13 0.83 0.69 6.44

Competitive Comparison of Nichias's Degree of Operating Leverage

For the Conglomerates subindustry, Nichias'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.


Nichias's Degree of Operating Leverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Nichias's Degree of Operating Leverage distribution charts can be found below:

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


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Nichias Degree of Operating Leverage Calculation

Nichias'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
=( 45590 (Mar. 2025) / 38512 (Mar. 2024) - 1 )/( 256512 (Mar. 2025) / 249390 (Mar. 2024) - 1 )
=0.1838/0.0286
=6.44***

* 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.


Nichias  (TSE:5393) 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.


Nichias Degree of Operating Leverage Related Terms

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Nichias Business Description

Industry
Traded in Other Exchanges
N/A
Address
6-1, Hatchobori 1-chome, Chuo-ku, Tokyo, JPN, 104-8555
Nichias Corp is engaged in five businesses, each contributing between roughly 10% and 30% of the company's total revenue. Energy and Industrial Plants, the largest business by sales, provides engineering services and products to energy plant customers that have construction and maintenance needs. Industrial Products provides a wide range of products to the infrastructure industry. Autoparts provides heat-proofing and sound-proofing products to automobile and automobile parts manufacturers. Building Materials supplies and installs fireproof building materials for residences and buildings. Advanced Products, the smallest business, provides components and materials for semiconductors to electronics-related industries. Nearly all the company's sales are in Asia, with more than 80% from Japan.

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