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ACB (Aurora Cannabis) Degree of Operating Leverage : -6.20 (As of Dec. 2024)


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What is Aurora Cannabis Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Aurora Cannabis's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -6.20. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ACB's Degree of Operating Leverage is ranked better than
84.5% of 942 companies
in the Drug Manufacturers industry
Industry Median: 0.87 vs ACB: -6.20

Aurora Cannabis Degree of Operating Leverage Historical Data

The historical data trend for Aurora Cannabis'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.

Aurora Cannabis Degree of Operating Leverage Chart

Aurora Cannabis Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.26 108.17 9.23 -16.44 -4.54

Aurora Cannabis Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.77 -4.54 -7.20 -6.17 -6.20

Competitive Comparison of Aurora Cannabis's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Aurora Cannabis'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.


Aurora Cannabis's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Aurora Cannabis's Degree of Operating Leverage distribution charts can be found below:

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


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Aurora Cannabis Degree of Operating Leverage Calculation

Aurora Cannabis'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
=( 17.589 (Dec. 2024) / -61.463 (Dec. 2023) - 1 )/( 232.948 (Dec. 2024) / 196.738 (Dec. 2023) - 1 )
=-1.2862/0.1841
=-6.99***

* 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.


Aurora Cannabis  (NAS:ACB) 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.


Aurora Cannabis Degree of Operating Leverage Related Terms

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Aurora Cannabis Business Description

Traded in Other Exchanges
Address
2207 90B Street SW, Edmonton, AB, CAN, T6X 1V8
Aurora Cannabis, headquartered in Edmonton, Canada, cultivates and sells medicinal and recreational cannabis through a portfolio of brands that includes Drift, San Rafael '71, Daily Special, Whistler, Being, and Greybeard. Although the company primarily operates in Canada, it has expanded internationally through medical cannabis exporting agreements.