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Eduniversal (XPAR:MLEDU) Degree of Operating Leverage : -2.22 (As of Sep. 2023)


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What is Eduniversal Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Eduniversal's Degree of Operating Leverage for the quarter that ended in Sep. 2023 was -2.22. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XPAR:MLEDU's Degree of Operating Leverage is ranked better than
77.64% of 246 companies
in the Education industry
Industry Median: 0.915 vs XPAR:MLEDU: -2.22

Eduniversal Degree of Operating Leverage Historical Data

The historical data trend for Eduniversal'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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Eduniversal Degree of Operating Leverage Chart

Eduniversal Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Degree of Operating Leverage
Get a 7-Day Free Trial -20.07 -10.95 266.65 -6.49 -2.22

Eduniversal Semi-Annual Data
Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Degree of Operating Leverage Get a 7-Day Free Trial -20.07 -10.95 266.65 -6.49 -2.22

Competitive Comparison of Eduniversal's Degree of Operating Leverage

For the Education & Training Services subindustry, Eduniversal'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.


Eduniversal's Degree of Operating Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Eduniversal's Degree of Operating Leverage distribution charts can be found below:

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


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Eduniversal Degree of Operating Leverage Calculation

Eduniversal's Degree of Operating Leverage for the quarter that ended in Sep. 2023 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 0.35 (Sep. 2023) / 0.411 (Sep. 2022) - 1 )/( 4.581 (Sep. 2023) / 4.294 (Sep. 2022) - 1 )
=-0.1484/0.0668
=-2.22***

* 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.


Eduniversal  (XPAR:MLEDU) 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.


Eduniversal Degree of Operating Leverage Related Terms

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Eduniversal Business Description

Traded in Other Exchanges
N/A
Address
18/20 Avenue Gabriel Peri, Montreuil sous Bois, Paris, FRA, 93100
Eduniversal SA specializes in educational, university, and professional orientation consulting services. The company also publishes and distributes specialized guides.

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