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RLLCF.PFD (Rolls-Royce Holdings) Degree of Operating Leverage : 0.00 (As of Jun. 2024)


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What is Rolls-Royce Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.


Rolls-Royce Holdings Degree of Operating Leverage Historical Data

The historical data trend for Rolls-Royce 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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Rolls-Royce Holdings Degree of Operating Leverage Chart

Rolls-Royce Holdings Annual Data
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Degree of Operating Leverage
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Rolls-Royce Holdings Semi-Annual Data
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Competitive Comparison of Rolls-Royce Holdings's Degree of Operating Leverage

For the Aerospace & Defense subindustry, Rolls-Royce 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.


Rolls-Royce Holdings's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's Degree of Operating Leverage distribution charts can be found below:

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



Rolls-Royce Holdings Degree of Operating Leverage Calculation

Rolls-Royce 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
=( 3564.763 (Jun. 2024) / 2526.544 (Jun. 2023) - 1 )/( 22619.107 (Jun. 2024) / 19145.509 (Jun. 2023) - 1 )
=0.4109/0.1814
=2.26***

* 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.


Rolls-Royce Holdings  (OTCPK:RLLCF.PFD) 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.


Rolls-Royce Holdings Degree of Operating Leverage Related Terms

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Rolls-Royce Holdings Business Description

Traded in Other Exchanges
Address
90 York Way, Kings Place, London, GBR, N1 9FX
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.

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