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Nexg Bhd (XKLS:5216) Degree of Operating Leverage : 16.26 (As of Mar. 2025)


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What is Nexg Bhd Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Nexg Bhd's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 16.26. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XKLS:5216's Degree of Operating Leverage is ranked worse than
90.88% of 2413 companies
in the Hardware industry
Industry Median: 1 vs XKLS:5216: 16.26

Nexg Bhd Degree of Operating Leverage Historical Data

The historical data trend for Nexg 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.

Nexg Bhd Degree of Operating Leverage Chart

Nexg Bhd Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.81 -0.22 4.41 2.11 16.26

Nexg 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 2.11 5.08 8.98 4.96 16.26

Competitive Comparison of Nexg Bhd's Degree of Operating Leverage

For the Computer Hardware subindustry, Nexg 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.


Nexg Bhd's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Nexg Bhd's Degree of Operating Leverage distribution charts can be found below:

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


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Nexg Bhd Degree of Operating Leverage Calculation

Nexg 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
=( 154.242 (Mar. 2025) / 125.694 (Mar. 2024) - 1 )/( 373.454 (Mar. 2025) / 368.309 (Mar. 2024) - 1 )
=0.2271/0.014
=16.26***

* 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.


Nexg Bhd  (XKLS:5216) 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.


Nexg Bhd Degree of Operating Leverage Related Terms

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Nexg Bhd Business Description

Industry
Traded in Other Exchanges
N/A
Address
Bangunan Setia 1, Level 6, No. 15, Damansara Heights, Lorong Dungun, Kuala Lumpur, MYS, 50490
Nexg Bhd formerly Datasonic Group Bhd functions in the computer technology field. The company's segments include Customised smart card solutions (CSCS), Manufacturing (MA), and Investment Holding (IH). The CSCS segment is engaged in the provision of large-scale customized software and hardware systems for secure identification (ID), total smart card solutions, and information and communications technology (ICT) project management. The MA segment is engaged in the manufacturing of cards and booklets. The IH segment is engaged in investment holding and the provision of management services to the group of companies. The company derives maximum revenue from the CSCS segment.

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