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Mashonaland Holdings (XZIM:MASH.ZW) Degree of Operating Leverage : 1.86 (As of Jun. 2024)


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What is Mashonaland Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Mashonaland Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 1.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XZIM:MASH.ZW's Degree of Operating Leverage is ranked worse than
65.47% of 1703 companies
in the Real Estate industry
Industry Median: 0.92 vs XZIM:MASH.ZW: 1.86

Mashonaland Holdings Degree of Operating Leverage Historical Data

The historical data trend for Mashonaland Holdings'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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Mashonaland Holdings Degree of Operating Leverage Chart

Mashonaland Holdings Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17
Degree of Operating Leverage
Get a 7-Day Free Trial -0.95 3.11 1.93 2.46 -1.24

Mashonaland Holdings Semi-Annual Data
Mar11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Jun23 Jun24
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 -5.72 -5.37 1.60 2.29 1.86

Competitive Comparison of Mashonaland Holdings's Degree of Operating Leverage

For the Real Estate - Development subindustry, Mashonaland Holdings'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.


Mashonaland Holdings's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Mashonaland Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Mashonaland Holdings Degree of Operating Leverage Calculation

Mashonaland Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 67.095 (Jun. 2024) / 52.335 (Jun. 2023) - 1 )/( 97.262 (Jun. 2024) / 84.468 (Jun. 2023) - 1 )
=0.282/0.1515
=1.86***

* 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.


Mashonaland Holdings  (XZIM:MASH.ZW) 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.


Mashonaland Holdings Degree of Operating Leverage Related Terms

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Mashonaland Holdings Business Description

Traded in Other Exchanges
N/A
Address
77 Jason Moyo Avenue, P O Box 717, 12th Floor, ZB Life Towers, Harare, ZWE
Mashonaland Holdings Ltd operates in the property investment and development business. Its property portfolio is distributed across the office, retail, industrial, residential, and health sectors. Its reportable segments are; the Office Segment; Industrial Segment; Pure Retail; Residential and Health. and Land. It generates the majority of its revenue from the Office segment under which it acquires, develops, and leases offices and shops housed in office complexes. The business activities of the company are carried out throughout Zimbabwe.

Mashonaland Holdings Headlines

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