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ZCAR (Zoomcar Holdings) Degree of Operating Leverage : 8.84 (As of Dec. 2024)


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What is Zoomcar Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Zoomcar Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 8.84. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ZCAR's Degree of Operating Leverage is ranked worse than
85.7% of 1000 companies
in the Business Services industry
Industry Median: 0.985 vs ZCAR: 8.84

Zoomcar Holdings Degree of Operating Leverage Historical Data

The historical data trend for Zoomcar 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.

* Premium members only.

Zoomcar Holdings Degree of Operating Leverage Chart

Zoomcar Holdings Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
- - - -0.73

Zoomcar Holdings Quarterly Data
Mar21 Mar22 Jun22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.81 -0.73 -3.91 8.15 8.84

Competitive Comparison of Zoomcar Holdings's Degree of Operating Leverage

For the Rental & Leasing Services subindustry, Zoomcar 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.


Zoomcar Holdings's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Zoomcar Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Zoomcar Holdings Degree of Operating Leverage Calculation

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

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -18.297 (Dec. 2024) / -55.551 (Dec. 2023) - 1 )/( 9.117 (Dec. 2024) / 9.865 (Dec. 2023) - 1 )
=-0.6706/-0.0758
=8.84***

* 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.


Zoomcar Holdings  (OTCPK:ZCAR) 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.


Zoomcar Holdings Degree of Operating Leverage Related Terms

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Zoomcar Holdings Business Description

Traded in Other Exchanges
N/A
Address
HAL Old Airport Road, No.147, 1st Floor, ISRO Colony, Anjaneya Techno Park, Kodihalli, Bangalore, KA, IND, 560008
Zoomcar Holdings Inc is India's largest marketplace for cars on rent. Zoomcar is a leading emerging-market-focused peer-to-peer car-sharing marketplace, with approximately 21,000 vehicles registered through its platform. The Company derives its revenue principally from short-term self-drive rentals and vehicle subscriptions. The self-drive rental business generates the majority of revenue. Geographically The company operates in India, Egypt, Indonesia, Vietnam, and the Philippines, Out of which the majority of revenue is derived from India.