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Rastriya Beema Co (XNEP:RBCL) Degree of Operating Leverage : 1.06 (As of Oct. 2024)


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What is Rastriya Beema Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Rastriya Beema Co's Degree of Operating Leverage for the quarter that ended in Oct. 2024 was 1.06. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Rastriya Beema Co's Degree of Operating Leverage or its related term are showing as below:

XNEP:RBCL's Degree of Operating Leverage is ranked worse than
52.37% of 338 companies
in the Insurance industry
Industry Median: 0.96 vs XNEP:RBCL: 1.06

Rastriya Beema Co Degree of Operating Leverage Historical Data

The historical data trend for Rastriya Beema Co'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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Rastriya Beema Co Degree of Operating Leverage Chart

Rastriya Beema Co Annual Data
Trend
Degree of Operating Leverage

Rastriya Beema Co Quarterly Data
Apr18 Oct18 Jan19 Apr19 Oct19 Jan20 Apr20 Oct20 Jan21 Apr21 Oct21 Jan22 Apr22 Oct22 Jan23 Apr23 Oct23 Jan24 Apr24 Oct24
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 - 13.40 8.82 0.86 1.06

Competitive Comparison of Rastriya Beema Co's Degree of Operating Leverage

For the Insurance - Diversified subindustry, Rastriya Beema Co'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.


Rastriya Beema Co's Degree of Operating Leverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Rastriya Beema Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Rastriya Beema Co's Degree of Operating Leverage falls into.


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Rastriya Beema Co Degree of Operating Leverage Calculation

Rastriya Beema Co's Degree of Operating Leverage for the quarter that ended in Oct. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 709.016 (Oct. 2024) / 1082.508 (Oct. 2023) - 1 )/( 1029.269 (Oct. 2024) / 1522.601 (Oct. 2023) - 1 )
=-0.345/-0.324
=1.06***

* 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.


Rastriya Beema Co  (XNEP:RBCL) 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.


Rastriya Beema Co Degree of Operating Leverage Related Terms

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Rastriya Beema Co Business Description

Traded in Other Exchanges
N/A
Address
RBCL Building, Ramshahpath, P.O.box 23837, Kathmandu, NPL
Rastriya Beema Co Ltd provides general insurance services in Nepal. The company offers fire, motor, aviation, marine, medical aid insurance and miscellaneous insurance services.

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