GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Mestron Holdings Bhd (XKLS:0207) » Definitions » Degree of Operating Leverage

Mestron Holdings Bhd (XKLS:0207) Degree of Operating Leverage : -7.18 (As of Dec. 2024)


View and export this data going back to 2019. Start your Free Trial

What is Mestron Holdings Bhd Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Mestron Holdings Bhd's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -7.18. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XKLS:0207's Degree of Operating Leverage is ranked better than
88.78% of 2931 companies
in the Industrial Products industry
Industry Median: 1.08 vs XKLS:0207: -7.18

Mestron Holdings Bhd Degree of Operating Leverage Historical Data

The historical data trend for Mestron Holdings 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.

Mestron Holdings Bhd Degree of Operating Leverage Chart

Mestron Holdings Bhd 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 -4.22 -15.53 1.80 1.15 -7.18

Mestron Holdings Bhd Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 1.15 0.94 -1.05 -2.93 -7.18

Competitive Comparison of Mestron Holdings Bhd's Degree of Operating Leverage

For the Metal Fabrication subindustry, Mestron Holdings 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.


Mestron Holdings Bhd's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Mestron Holdings Bhd's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Mestron Holdings Bhd Degree of Operating Leverage Calculation

Mestron Holdings Bhd's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 12.012 (Dec. 2024) / 17.482 (Dec. 2023) - 1 )/( 155.279 (Dec. 2024) / 148.799 (Dec. 2023) - 1 )
=-0.3129/0.0435
=-7.18***

* 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.


Mestron Holdings Bhd  (XKLS:0207) 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.


Mestron Holdings Bhd Degree of Operating Leverage Related Terms

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


Mestron Holdings Bhd Business Description

Traded in Other Exchanges
N/A
Address
PT 50102, Jalan MU 1/9 Seksyen 10, Taman Perindustrian Meranti Utama, Puchong, SGR, MYS, 47120
Mestron Holdings Bhd specializes in steel poles, providing products like Standard and Decorative Street Light Poles, Telecommunication Monopoles, High Mast Poles, Camera Poles, Traffic Poles, and specialized options for Oil & Gas and Mining industries. The company operates in three segments: Manufacturing, focused on producing various steel poles; Trading, which deals in outdoor lighting products and property development; and the Renewable Energy Segment. Trading Segment generates the majority of revenue, due to the deliveries of solar panels, inverters, and solar components from the domestic market, due to the higher demand for installation in the Commercial and Industrial sectors.

Mestron Holdings Bhd Headlines

No Headlines