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TSHMY (Shibaura Machine Co) Degree of Operating Leverage : -6.20 (As of Mar. 2025)


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What is Shibaura Machine Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Shibaura Machine Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -6.20. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSHMY's Degree of Operating Leverage is ranked better than
87.66% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs TSHMY: -6.20

Shibaura Machine Co Degree of Operating Leverage Historical Data

The historical data trend for Shibaura Machine 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.

Shibaura Machine Co Degree of Operating Leverage Chart

Shibaura Machine 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 4.71 67.02 4.17 9.24 -6.20

Shibaura Machine 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 9.24 6.35 -2.18 - -6.20

Competitive Comparison of Shibaura Machine Co's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Shibaura Machine 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.


Shibaura Machine Co's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shibaura Machine Co's Degree of Operating Leverage distribution charts can be found below:

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


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Shibaura Machine Co Degree of Operating Leverage Calculation

Shibaura Machine 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
=( 121.389 (Mar. 2025) / 170.353 (Mar. 2024) - 1 )/( 1128.362 (Mar. 2025) / 1072.317 (Mar. 2024) - 1 )
=-0.2874/0.0523
=-5.50***

* 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.


Shibaura Machine Co  (OTCPK:TSHMY) 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.


Shibaura Machine Co Degree of Operating Leverage Related Terms

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Shibaura Machine Co Business Description

Traded in Other Exchanges
Address
2068-3 Ooka, Shizuoka Prefecture, Numazu, JPN, 410-8510
Shibaura Machine Co Ltd is engaged in manufacturing and distribution of molding machineries and machine tools. The business of the company is divided into two segments: molding machinery and machine tools. The company's product portfolio comprises injection molding machines, die-casting machines, plastic extrusion, large-size machine tools, portal-type machine tools, machining centers, horizontal boring machines, and high-precision machines, among others. The company's products are used in manufacturing of computers, automobile engines, transmissions, medical products, high-precision lenses, displays, construction machines, and wind power generation. A vast majority of the company's revenue is generated by the molding machinery segment, and the company earns most of its revenue in Japan.

Shibaura Machine Co Headlines

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