GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Musashi Seimitsu Industry Co Ltd (TSE:7220) » Definitions » Degree of Operating Leverage

Musashi Seimitsu Industry Co (TSE:7220) Degree of Operating Leverage : -9.25 (As of Mar. 2025)


View and export this data going back to 2004. Start your Free Trial

What is Musashi Seimitsu Industry Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Musashi Seimitsu Industry Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -9.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Musashi Seimitsu Industry Co's Degree of Operating Leverage or its related term are showing as below:

TSE:7220's Degree of Operating Leverage is ranked better than
87.75% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1 vs TSE:7220: -9.25

Musashi Seimitsu Industry Co Degree of Operating Leverage Historical Data

The historical data trend for Musashi Seimitsu Industry Co'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.

Musashi Seimitsu Industry Co Degree of Operating Leverage Chart

Musashi Seimitsu Industry Co 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 15.90 -0.50 -0.43 6.06 -9.25

Musashi Seimitsu Industry Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 6.06 5.83 3.50 - -9.25

Competitive Comparison of Musashi Seimitsu Industry Co's Degree of Operating Leverage

For the Auto Parts subindustry, Musashi Seimitsu Industry Co'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.


Musashi Seimitsu Industry Co's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Musashi Seimitsu Industry Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Musashi Seimitsu Industry Co's Degree of Operating Leverage falls into.


;
;

Musashi Seimitsu Industry Co Degree of Operating Leverage Calculation

Musashi Seimitsu Industry Co'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
=( 17711 (Mar. 2025) / 16522 (Mar. 2024) - 1 )/( 347196 (Mar. 2025) / 349917 (Mar. 2024) - 1 )
=0.072/-0.0078
=-9.25***

* 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.


Musashi Seimitsu Industry Co  (TSE:7220) 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.


Musashi Seimitsu Industry Co Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Musashi Seimitsu Industry Co's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Musashi Seimitsu Industry Co Business Description

Traded in Other Exchanges
Address
39-5 Daizen, Ueta-Cho, Toyohashi-shi, Aichi, JPN, 441-8560
Musashi Seimitsu Industry Co Ltd is a Japanese transportation equipment manufacturer. The company engages in the business of manufacturing automobile parts for its customers which include the automobile firms in the world. Its product portfolio includes suspension arms assemblies, suspension ball joints, steering ball joints, camshafts, gear assemblies, bevel gears, helical gears, sprockets, gear shafts, and con rods. It serves internationally and mainly focuses on Japan, North America, Europe, Asia, and South America.

Musashi Seimitsu Industry Co Headlines

No Headlines