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Soaltee Hotel (XNEP:SHL) Degree of Operating Leverage : 1.59 (As of Mar. 2025)


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What is Soaltee Hotel Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Soaltee Hotel's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.59. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XNEP:SHL's Degree of Operating Leverage is ranked worse than
54.88% of 809 companies
in the Travel & Leisure industry
Industry Median: 1.25 vs XNEP:SHL: 1.59

Soaltee Hotel Degree of Operating Leverage Historical Data

The historical data trend for Soaltee Hotel'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.

Soaltee Hotel Degree of Operating Leverage Chart

Soaltee Hotel Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only 1.81 3.39 2.02 -2.39 1.87

Soaltee Hotel Quarterly Data
Dec18 Mar19 Jul19 Dec19 Mar20 Jul20 Dec20 Mar21 Jul21 Dec21 Mar22 Jul22 Dec22 Mar23 Jul23 Dec23 Mar24 Jul24 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 1.05 1.06 1.06 1.53 1.59

Competitive Comparison of Soaltee Hotel's Degree of Operating Leverage

For the Lodging subindustry, Soaltee Hotel'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.


Soaltee Hotel's Degree of Operating Leverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Soaltee Hotel's Degree of Operating Leverage distribution charts can be found below:

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


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Soaltee Hotel Degree of Operating Leverage Calculation

Soaltee Hotel'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
=( 439.726 (Mar. 2025) / 393.238 (Mar. 2024) - 1 )/( 1376.434 (Mar. 2025) / 1281.366 (Mar. 2024) - 1 )
=0.1182/0.0742
=1.59***

* 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.


Soaltee Hotel  (XNEP:SHL) 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.


Soaltee Hotel Degree of Operating Leverage Related Terms

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Soaltee Hotel Business Description

Traded in Other Exchanges
N/A
Address
Tahachal, Post Box 3800, Kathmandu, NPL
Soaltee Hotel Ltd is a five-star hotel in Nepal. It is engaged in the tourism industry with its contribution of luxurious properties and hospitality across the region. It has 3 operating segments Room, Food & Beverage and Other. The company operates hotels, a building block, a separate flight kitchen unit building, and seven presidential-regal suites for VVIPs. Its operating segment includes Core Hotel Business, Horizon Lounge, and Flight Catering, and the majority of its revenue is generated from the Hotel business.

Soaltee Hotel Headlines

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