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Mazaro NV (XBRU:MLMAZ) Degree of Operating Leverage : -2.94 (As of Dec. 2023)


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What is Mazaro NV Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Mazaro NV's Degree of Operating Leverage for the quarter that ended in Dec. 2023 was -2.94. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XBRU:MLMAZ's Degree of Operating Leverage is ranked better than
80.69% of 1269 companies
in the Vehicles & Parts industry
Industry Median: 1.2 vs XBRU:MLMAZ: -2.94

Mazaro NV Degree of Operating Leverage Historical Data

The historical data trend for Mazaro NV'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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Mazaro NV Degree of Operating Leverage Chart

Mazaro NV Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
- - - 42.79 -2.94

Mazaro NV Semi-Annual Data
Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage - - - 42.79 -2.94

Competitive Comparison of Mazaro NV's Degree of Operating Leverage

For the Auto Parts subindustry, Mazaro NV'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.


Mazaro NV's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

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

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



Mazaro NV Degree of Operating Leverage Calculation

Mazaro NV's Degree of Operating Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.758 (Dec. 2023) / -0.208 (Dec. 2022) - 1 )/( 0.008 (Dec. 2023) / 0.079 (Dec. 2022) - 1 )
=2.6442/-0.8987
=-2.94***

* 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.


Mazaro NV  (XBRU:MLMAZ) 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.


Mazaro NV Degree of Operating Leverage Related Terms

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Mazaro NV Business Description

Traded in Other Exchanges
N/A
Address
Bommelsrede 42, Destelbergen, BEL, 9070
Mazaro NV is specialized in the design and development of transmissions systems. The group offers reversible variable transmissions for motor vehicles such as passenger cars, trucks, buses, off-road vehicles, forklifts, tractors and single-stage variable transmissions for electric vehicles and industrial powertrains. It designs various transmissions that combine exceptionally high internal efficiency with the ability to keep the internal combustion engine or E-engine on its optimal efficiency curve at all times, providing unparalleled energy, emissions and cost savings while optimizing performance and comfort. The benefits of this technology is impressive in trucks, buses, off-highway vehicles, SUVs, lift trucks and tractors both powered by a combustion engine and electric.

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