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REDtone Digital Bhd (XKLS:0032) Degree of Operating Leverage : 5.86 (As of Mar. 2025)


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What is REDtone Digital Bhd Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. REDtone Digital Bhd's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for REDtone Digital Bhd's Degree of Operating Leverage or its related term are showing as below:

XKLS:0032's Degree of Operating Leverage is ranked worse than
76.5% of 366 companies
in the Telecommunication Services industry
Industry Median: 1.405 vs XKLS:0032: 5.86

REDtone Digital Bhd Degree of Operating Leverage Historical Data

The historical data trend for REDtone Digital Bhd'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.

REDtone Digital Bhd Degree of Operating Leverage Chart

REDtone Digital Bhd Annual Data
Trend May13 May14 May15 Apr17 Apr18 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - -56.97 -3.54 1.01 0.17

REDtone Digital Bhd 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 -0.35 0.17 0.64 1.29 5.86

Competitive Comparison of REDtone Digital Bhd's Degree of Operating Leverage

For the Telecom Services subindustry, REDtone Digital Bhd'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.


REDtone Digital Bhd's Degree of Operating Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, REDtone Digital Bhd's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where REDtone Digital Bhd's Degree of Operating Leverage falls into.


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REDtone Digital Bhd Degree of Operating Leverage Calculation

REDtone Digital Bhd'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
=( 90.621 (Mar. 2025) / 60.684 (Mar. 2024) - 1 )/( 338.945 (Mar. 2025) / 312.641 (Mar. 2024) - 1 )
=0.4933/0.0841
=5.86***

* 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.


REDtone Digital Bhd  (XKLS:0032) 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.


REDtone Digital Bhd Degree of Operating Leverage Related Terms

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REDtone Digital Bhd Business Description

Traded in Other Exchanges
N/A
Address
IOI Business Park, Suite 22-30, 5th Floor, Puchong, SGR, MYS, 47100
REDtone Digital Bhd is a digital infrastructure and services provider that offers services under three segments that are Telecommunications Services which offers data and voice services to government, enterprises, and small and medium enterprises (SMEs); Managed Telecommunications Network Services (MTNS) which includes building, maintaining and operating large scale WiFi hotspots, radio access network (RAN) infrastructure and fibre optic infrastructure; and the Cloud and Internet of Things segment which offers cloud services and applications, data center solutions, disaster recovery, and Internet of Things technology for smart farming. The company derives maximum revenue from the Managed Telecommunications Network Services (MTNS) segment. Geographically, it operates in Malaysia.

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