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Zimre Holdings (XZIM:ZIMR.ZW) Degree of Operating Leverage : -5.44 (As of Jun. 2024)


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What is Zimre Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Zimre Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was -5.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XZIM:ZIMR.ZW's Degree of Operating Leverage is ranked better than
90% of 340 companies
in the Insurance industry
Industry Median: 0.94 vs XZIM:ZIMR.ZW: -5.44

Zimre Holdings Degree of Operating Leverage Historical Data

The historical data trend for Zimre 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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Zimre Holdings Degree of Operating Leverage Chart

Zimre Holdings Annual Data
Trend Dec08 Dec09 Dec10 Dec15 Dec16 Dec17 Dec18
Degree of Operating Leverage
Get a 7-Day Free Trial - - - - 5.38

Zimre Holdings Semi-Annual Data
Dec08 Dec09 Dec10 Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun23 Jun24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - 1.39 5.38 -0.24 -5.44

Competitive Comparison of Zimre Holdings's Degree of Operating Leverage

For the Insurance - Reinsurance subindustry, Zimre 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.


Zimre Holdings's Degree of Operating Leverage Distribution in the Insurance Industry

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

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


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Zimre Holdings Degree of Operating Leverage Calculation

Zimre 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
=( 199.439 (Jun. 2024) / 146.133 (Jun. 2023) - 1 )/( 831.533 (Jun. 2024) / 891.286 (Jun. 2023) - 1 )
=0.3648/-0.067
=-5.44***

* 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.


Zimre Holdings  (XZIM:ZIMR.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.


Zimre Holdings Degree of Operating Leverage Related Terms

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Zimre Holdings Business Description

Traded in Other Exchanges
N/A
Address
Smatsatsa Office Park, 2nd Floor, D Block, P.O. Box 4839, Borrowdale, Stand Number 10667, Harare, ZWE
Zimre Holdings Ltd is a Zimbabwe-based investment holding company. The firm operates its business activities in six segments. The Reinsurance segment offers short-term reinsurance products and services to general insurance companies locally, regionally and internationally. The Life reassurance segment offers its services to life assurance companies and medical aid societies locally and regionally. The Property segment is engaged in leasing, developing, managing, selling and buying properties. General insurance offers short-term insurance products and services directly to policyholders locally. Insurance broking, Life, and Pension segment. The Reinsurance segment contributes to the majority of the company's revenue. Zimre has operations in Botswana, Malawi, Mozambique, South Africa, Zambia.

Zimre Holdings Headlines

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