GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Sherritt International Corp (TSX:S) » Definitions » Degree of Operating Leverage

Sherritt International (TSX:S) Degree of Operating Leverage : 4.58 (As of Mar. 2025)


View and export this data going back to 1996. Start your Free Trial

What is Sherritt International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sherritt International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.58. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSX:S's Degree of Operating Leverage is ranked worse than
79.03% of 725 companies
in the Metals & Mining industry
Industry Median: 0.83 vs TSX:S: 4.58

Sherritt International Degree of Operating Leverage Historical Data

The historical data trend for Sherritt International'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.

Sherritt International Degree of Operating Leverage Chart

Sherritt International Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.54 26.93 3.50 -4.99 -0.77

Sherritt International 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 36.63 16.55 10.09 -0.77 4.58

Competitive Comparison of Sherritt International's Degree of Operating Leverage

For the Other Industrial Metals & Mining subindustry, Sherritt International'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.


Sherritt International's Degree of Operating Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Sherritt International's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Sherritt International Degree of Operating Leverage Calculation

Sherritt International'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
=( -32.4 (Mar. 2025) / -79.8 (Mar. 2024) - 1 )/( 168.4 (Mar. 2025) / 193.5 (Mar. 2024) - 1 )
=-0.594/-0.1297
=4.58***

* 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.


Sherritt International  (TSX:S) 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.


Sherritt International Degree of Operating Leverage Related Terms

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


Sherritt International Business Description

Traded in Other Exchanges
Address
22 Adelaide Street West, Suite 4220, Toronto, ON, CAN, M5H 4E3
Sherritt International Corp is engaged in the mining and refining of nickel from lateritic ores with projects and operations in Europe, Asia, Cuba, North America, and others regions. Its segment includes Metals, Power, Oil and Gas, Technologies and Corporate. The Metals segment which generates the majority of the revenue is composed of mining, processing and refining activities of nickel and cobalt for its interest in Moa JV in Cuba and Canada. The Power segment represents the power operations in Cuba, including its interest in Energas; The Oil and Gas segment is exploring for oil and gas in Cuba and the Technologies segment represents the its technology group which delivers essential technical support for its operations.
Executives
Gregory Timothy Honig Senior Officer
Leon Binedell Director, Senior Officer
Yasmin Gabriel Senior Officer
Peter James Hancock Director
Maryse Belanger Director
Karen Lynn Trenton Senior Officer
Stephen James Wood Senior Officer