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Toyota Caetano Portugal (XLIS:SCT) Degree of Operating Leverage : 1.38 (As of Dec. 2024)


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What is Toyota Caetano Portugal Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Toyota Caetano Portugal's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Toyota Caetano Portugal's Degree of Operating Leverage or its related term are showing as below:

XLIS:SCT's Degree of Operating Leverage is ranked worse than
55.89% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1 vs XLIS:SCT: 1.38

Toyota Caetano Portugal Degree of Operating Leverage Historical Data

The historical data trend for Toyota Caetano Portugal'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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Toyota Caetano Portugal Degree of Operating Leverage Chart

Toyota Caetano Portugal 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 2.56 9.23 1.63 5.24 1.38

Toyota Caetano Portugal Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 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 1.63 0.97 5.24 2.44 1.38

Competitive Comparison of Toyota Caetano Portugal's Degree of Operating Leverage

For the Auto Manufacturers subindustry, Toyota Caetano Portugal'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.


Toyota Caetano Portugal's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Toyota Caetano Portugal's Degree of Operating Leverage falls into.


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Toyota Caetano Portugal Degree of Operating Leverage Calculation

Toyota Caetano Portugal'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
=( 43.596 (Dec. 2024) / 31.249 (Dec. 2023) - 1 )/( 658.17 (Dec. 2024) / 511.571 (Dec. 2023) - 1 )
=0.3951/0.2866
=1.38***

* 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.


Toyota Caetano Portugal  (XLIS:SCT) 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.


Toyota Caetano Portugal Degree of Operating Leverage Related Terms

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Toyota Caetano Portugal Business Description

Traded in Other Exchanges
N/A
Address
Avenida Vasco da Gama, No. 1410, Vila Nova de Gaia, PRT, 4431-956
Toyota Caetano Portugal SA is a Portugal-based company involved in the automotive industry. The business activity of the group includes the import, assembly, and commercialization of light and heavy vehicles, and the import and sale of industrial equipment. In addition, it also provides technical after-sales services. Its reportable segments are; Vehicles which derives key revenue, Industrial equipment, and others. The company distributes its products under the Toyota and Lexus brand names. Geographically the business presence of the firm is seen across the region of Belgium, Portugal, Spain, Germany, the United Kingdom, and others.