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VRDR (Verde Resources) Degree of Operating Leverage : 0.11 (As of Mar. 2025)


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What is Verde Resources Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Verde Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VRDR's Degree of Operating Leverage is ranked better than
58.47% of 248 companies
in the Agriculture industry
Industry Median: 0.895 vs VRDR: 0.11

Verde Resources Degree of Operating Leverage Historical Data

The historical data trend for Verde 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.

* Premium members only.

Verde Resources Degree of Operating Leverage Chart

Verde Resources Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 0.04 -1.75

Verde Resources 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 0.48 -1.75 0.09 0.23 0.11

Competitive Comparison of Verde Resources's Degree of Operating Leverage

For the Agricultural Inputs subindustry, Verde 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.


Verde Resources's Degree of Operating Leverage Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Verde Resources's Degree of Operating Leverage distribution charts can be found below:

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


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Verde Resources Degree of Operating Leverage Calculation

Verde Resources'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
=( -4.58 (Mar. 2025) / -1.718 (Mar. 2024) - 1 )/( 0.218 (Mar. 2025) / 0.014 (Mar. 2024) - 1 )
=1.6659/14.5714
=0.11***

* 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.


Verde Resources  (OTCPK:VRDR) 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.


Verde Resources Degree of Operating Leverage Related Terms

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


Verde Resources Business Description

Traded in Other Exchanges
N/A
Address
8112 Maryland Avenue, Suite 400, St. Louis, MO, USA, 63105
Verde Resources Inc is a US-based company. The company currently is engaged in the production and distribution of renewable commodities, distribution of THC-free cannabinoid (CBD) products, and real property holding. The company has three operating segments, Production and distribution of renewable commodities; Holding of real property; and Licensor of proprietary pyrolysis technology. It generates the majority of its revenue from the Production and distribution of renewable commodities segment.
Executives
Oil Berhad Borneo 10 percent owner 1ST AND 2ND FLOOR, VICTORIA POINT,, JALAN OKK AWANG BESAR, W. P. LABUAN N8 87007
Borneo Oil & Gas Corp Sdn Bhd 10 percent owner 17TH FLOOR, MENARA HAP SENG, NO. 1 & 3, JALAN P. RAMLEE, KUALA LUMPUR N8 50250
Ming Ding Wu director, 10 percent owner, officer: President UNIT 1503, 15/F, THE PHOENIX, 21-25 LUARD ROAD, WANCHAI, HONG KONG K3 00000
All Fine Holdings Ltd 10 percent owner UNIT 1503, 15/F., THE PHOENIX, 21-25 LUARD ROAD, WANCHAI, HONG KONG K3 00000
Michael Stiege director, 10 percent owner 905 VENTURE WAY, MILL VALLEY CA 94941
Stephen Spalding director, 10 percent owner, officer: Pres., CEO, Tres., Sec. 905 VENTURE WAY, MILL VALLEY CA 94941
Kukulcan Diversified Corp. 10 percent owner PO BOX 1405, LOS ALTOS CA 94023