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Melewar Industrial Group Bhd (XKLS:3778) Degree of Operating Leverage : 3.75 (As of Mar. 2025)


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What is Melewar Industrial Group Bhd Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Melewar Industrial Group Bhd's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XKLS:3778's Degree of Operating Leverage is ranked worse than
67.39% of 601 companies
in the Steel industry
Industry Median: 1.14 vs XKLS:3778: 3.75

Melewar Industrial Group Bhd Degree of Operating Leverage Historical Data

The historical data trend for Melewar Industrial Group 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.

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Melewar Industrial Group Bhd Degree of Operating Leverage Chart

Melewar Industrial Group Bhd 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 6.30 74.94 -6.71 4.44 -5.74

Melewar Industrial Group 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 -6.93 -5.74 -5.46 33.39 3.75

Competitive Comparison of Melewar Industrial Group Bhd's Degree of Operating Leverage

For the Steel subindustry, Melewar Industrial Group 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.


Melewar Industrial Group Bhd's Degree of Operating Leverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Melewar Industrial Group Bhd's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Melewar Industrial Group Bhd's Degree of Operating Leverage falls into.


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Melewar Industrial Group Bhd Degree of Operating Leverage Calculation

Melewar Industrial Group 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
=( 13.457 (Mar. 2025) / 9.902 (Mar. 2024) - 1 )/( 800.79 (Mar. 2025) / 730.886 (Mar. 2024) - 1 )
=0.359/0.0956
=3.75***

* 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.


Melewar Industrial Group Bhd  (XKLS:3778) 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.


Melewar Industrial Group Bhd Degree of Operating Leverage Related Terms

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Melewar Industrial Group Bhd Business Description

Traded in Other Exchanges
N/A
Address
No. 566 Jalan Ipoh, 15th Floor, Kuala Lumpur, SGR, MYS, 51200
Melewar Industrial Group Bhd along with its subsidiaries, operates in four reportable segments. The Steel Tube segment is in the business of manufacturing and sales of steel pipes and tubes. The Cold Rolled Coil segment is in the business of manufacturing and sales of cold-rolled coils. The investment holding segment refers to companies with investments in subsidiaries and companies with investments in quoted and unquoted equity securities. Others comprise companies involved in the food, trade-retail business, modular construction, and metal scraps trading businesses. It generates maximum revenue from the Cold rolled coil segment. Geographically, the group derives maximum revenue from Malaysia.

Melewar Industrial Group Bhd Headlines

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