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Unifreight Africa (XZIM:UNIF.ZW) Degree of Operating Leverage : 7.99 (As of Dec. 2023)


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What is Unifreight Africa Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Unifreight Africa's Degree of Operating Leverage for the quarter that ended in Dec. 2023 was 7.99. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XZIM:UNIF.ZW's Degree of Operating Leverage is ranked worse than
88.66% of 979 companies
in the Transportation industry
Industry Median: 0.86 vs XZIM:UNIF.ZW: 7.99

Unifreight Africa Degree of Operating Leverage Historical Data

The historical data trend for Unifreight Africa'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.

Unifreight Africa Degree of Operating Leverage Chart

Unifreight Africa Annual Data
Trend Dec09 Dec11 Dec12 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only 3.37 -1.41 -4.56 1.79 7.99

Unifreight Africa Semi-Annual Data
Dec09 Dec11 Dec12 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only 3.37 -1.41 -4.56 1.79 7.99

Competitive Comparison of Unifreight Africa's Degree of Operating Leverage

For the Railroads subindustry, Unifreight Africa'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.


Unifreight Africa's Degree of Operating Leverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Unifreight Africa's Degree of Operating Leverage distribution charts can be found below:

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


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Unifreight Africa Degree of Operating Leverage Calculation

Unifreight Africa's Degree of Operating Leverage for the quarter that ended in Dec. 2023 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 15592.222 (Dec. 2023) / 966.098 (Dec. 2022) - 1 )/( 16872.013 (Dec. 2023) / 5829.955 (Dec. 2022) - 1 )
=15.1394/1.894
=7.99***

* 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.


Unifreight Africa  (XZIM:UNIF.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.


Unifreight Africa Degree of Operating Leverage Related Terms

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Unifreight Africa Business Description

Traded in Other Exchanges
N/A
Address
Corner Orme/Willow Roads, Southerton, Harare, ZWE
Unifreight Africa Ltd is a Zimbabwe-based transport company. It is involved in the road transport industry whose main activities include inter-city freight consolidations, the distribution of general goods, and a courier service. The company's brands include Swift Transport, Bulwark Transport, and SkyNet Worldwide Express. Its operating divisions include Transport and Courier; Dedicated and Specialised and International distribution logistics. It operates in two segments namely Transport and Logistics solution and Investment property. The company generates maximum revenue from Transport and Logistics segment. Geographically, it derives revenue from Zimbabwe.

Unifreight Africa Headlines

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