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Southgobi Resources (TSXV:SGQ) Degree of Operating Leverage : 3.03 (As of Sep. 2024)


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What is Southgobi Resources Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Southgobi Resources's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 3.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSXV:SGQ's Degree of Operating Leverage is ranked worse than
68.55% of 124 companies
in the Other Energy Sources industry
Industry Median: 1.975 vs TSXV:SGQ: 3.03

Southgobi Resources Degree of Operating Leverage Historical Data

The historical data trend for Southgobi Resources'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.

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Southgobi Resources Degree of Operating Leverage Chart

Southgobi Resources Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.50 1.50 -1.17 -0.62 1.36

Southgobi Resources Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.89 1.36 0.60 -313.86 3.03

Competitive Comparison of Southgobi Resources's Degree of Operating Leverage

For the Thermal Coal subindustry, Southgobi Resources'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.


Southgobi Resources's Degree of Operating Leverage Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, Southgobi Resources's Degree of Operating Leverage distribution charts can be found below:

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



Southgobi Resources Degree of Operating Leverage Calculation

Southgobi Resources's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 159.479 (Sep. 2024) / 65.921 (Sep. 2023) - 1 )/( 551.893 (Sep. 2024) / 369.123 (Sep. 2023) - 1 )
=1.4192/0.4951
=2.87***

* 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.


Southgobi Resources  (TSXV:SGQ) 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.


Southgobi Resources Degree of Operating Leverage Related Terms

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Southgobi Resources Business Description

Traded in Other Exchanges
Address
Tower 1, 193 Prince Edward Road. West, Grand Centurey Tower, Units 1208-10, Mongkok, Corporate Department, Kowloon, HKG, V6C 2G8
Southgobi Resources Ltd together with its subsidiaries is an integrated coal mining, development, and exploration company. Its reportable operating segment is its Coal Division which is principally engaged in coal mining, development, and exploration in Mongolia and logistics and trading of coal in Mongolia and China. The company also holds the mining and exploration licenses of other metallurgical and thermal coal deposits in the South Gobi Province of Mongolia. The company owns the following operating coal mine and coal projects in Mongolia: the Ovoot Tolgoi Mine, Zag Suuj Project, and the Soumber Project.
Executives
Allison Snetsinger Senior Officer
Yingbin Ian He Director
Alan Ho Senior Officer

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