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David Jones (ASX:DJS) Degree of Operating Leverage : 0.00 (As of Jan. 2014)


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What is David Jones Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. David Jones's Degree of Operating Leverage for the quarter that ended in Jan. 2014 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ASX:DJS's Degree of Operating Leverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 1.29
* Ranked among companies with meaningful Degree of Operating Leverage only.

David Jones Degree of Operating Leverage Historical Data

The historical data trend for David Jones'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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David Jones Degree of Operating Leverage Chart

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David Jones Semi-Annual Data
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Competitive Comparison of David Jones's Degree of Operating Leverage

For the Department Stores subindustry, David Jones'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.


David Jones's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

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

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


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David Jones Degree of Operating Leverage Calculation

David Jones's Degree of Operating Leverage for the quarter that ended in Jan. 2014 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 134.441 (Jan. 2014) / 137.81 (Jan. 2013) - 1 )/( 1900.22 (Jan. 2014) / 1860.477 (Jan. 2013) - 1 )
=-0.0244/0.0214
=-1.14***

* 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.


David Jones  (ASX:DJS) 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.


David Jones Degree of Operating Leverage Related Terms

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David Jones Business Description

Traded in Other Exchanges
N/A
Address
David Jones Limited is engaged in the business of department store retailing and providing financial services. It operates in two segments: Department Stores and Financial Services. The company operates department stores and rack stores in New South Wales, Australian Capital Territory, Victoria, Queensland, South Australia, and Western Australia. The company also has a financial services alliance with American Express Australia Limited, which is relating to the assignment of store card and credit reserve receivables, and the launch of a general purpose credit card. Its Services include: Corporate Services, Insurance Card, Gift Registry, Bridal at David Jones, David Jones Celebration Card Statement, Style Advisors, Personal Shopping, Shopping Online, Gift Card, Interior Decorating, Flowers, Food hall, The Rose Clinic, Bra Fitting etc.

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