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AONNY (AEON Co) Degree of Operating Leverage : -1.02 (As of Feb. 2025)


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What is AEON Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. AEON Co's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was -1.02. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AONNY's Degree of Operating Leverage is ranked better than
73.92% of 1093 companies
in the Retail - Cyclical industry
Industry Median: 1.29 vs AONNY: -1.02

AEON Co Degree of Operating Leverage Historical Data

The historical data trend for AEON Co'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.

AEON Co Degree of Operating Leverage Chart

AEON Co Annual Data
Trend Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16,971.10 64.55 6.45 1.68 -1.02

AEON Co Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 1.68 4.08 0.94 - -1.02

Competitive Comparison of AEON Co's Degree of Operating Leverage

For the Department Stores subindustry, AEON Co'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.


AEON Co's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, AEON Co's Degree of Operating Leverage distribution charts can be found below:

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


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AEON Co Degree of Operating Leverage Calculation

AEON Co's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1364.471 (Feb. 2025) / 1474.023 (Feb. 2024) - 1 )/( 66865.27 (Feb. 2025) / 63854.266 (Feb. 2024) - 1 )
=-0.0743/0.0472
=-1.58***

* 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.


AEON Co  (OTCPK:AONNY) 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.


AEON Co Degree of Operating Leverage Related Terms

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AEON Co Business Description

Traded in Other Exchanges
Address
1-5-1 Nakase, Minami-ku, Chiba-shi, Chiba, JPN, 261-8515
AEON Co Ltd is the holding company of Aeon Group, integrated Japanese retailer, and is active not only in Japan but also throughout countries in the Association of Southeast Asian Nations and China. The business is segmented in four main divisions: supermarket and discount store, drugstore and pharmacy, shopping-center development, and financial sevices. The company's core operations are general merchandise store, supermarket, and convenience-store operations. Aeon is also active in specialty store operations, shopping-center development and operations, and credit card business and services.

AEON Co Headlines

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