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Gemlife Communities GroupASX:GLF +0.82%8 Degree of Operating Leverage is -3.40 as of Dec. 2025. GuruFocus rates ASX:GLF with a GF Score™ of 8/100. The stock has 8 warning signs investors should review. Among 1,705 Real Estate companies, Gemlife Communities Group ranks better than 82.35% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Gemlife Communities Group's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was -3.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Gemlife Communities Group's Degree of Operating Leverage or its related term are showing as below:
ASX:GLF's Degree of Operating Leverage is ranked better than 82.35% of 1705
companies
in the Real Estate industry
Industry Median: 0.81
vs ASX:GLF: -3.40
Gemlife Communities Group (ASX:GLF) 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.
Gemlife Communities Group Degree of Operating Leverage Related Terms
Gemlife Communities Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Gemlife Communities Group'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.
Gemlife Communities Group Degree of Operating Leverage Chart
Gemlife Communities Group Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
Degree of Operating Leverage
0.00
0.21
0.85
-3.40
Gemlife Communities Group Semi-Annual Data
Dec22
Dec23
Dec24
Dec25
Degree of Operating Leverage
0.00
0.21
0.85
-3.40
Gemlife Communities Group Degree of Operating Leverage Competitor Comparison
For the Real Estate - Development subindustry, Gemlife Communities Group'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.
Gemlife Communities Group Degree of Operating Leverage vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Gemlife Communities Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Gemlife Communities Group's Degree of Operating Leverage falls into.
* 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.
What does a Degree of Operating Leverage of -3.40 mean?
Gemlife Communities Group (ASX:GLF) has a Degree of Operating Leverage of -3.40 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Gemlife Communities Group and its competitors. According to the industry distribution chart, Gemlife Communities Group ranks #301 out of 1705 companies in the Real Estate industry, placing it in the top 17.7%.
Is Gemlife Communities Group's Degree of Operating Leverage too high?
Gemlife Communities Group's current Degree of Operating Leverage is -3.40. Based on the distribution chart, Gemlife Communities Group ranks #301 out of 1705 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Gemlife Communities Group has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Gemlife Communities Group's Degree of Operating Leverage compare to competitors?
According to the Real Estate industry distribution chart, Gemlife Communities Group ranks #301 out of 1705 companies for Degree of Operating Leverage. This places Gemlife Communities Group in the top 18% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 0.81. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Real Estate company?
The median Degree of Operating Leverage among Real Estate companies is 0.81, based on 1,705 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Gemlife Communities Group and its competitors. For the Real Estate industry, the median Degree of Operating Leverage is 0.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gemlife Communities Group's current Degree of Operating Leverage is -3.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gemlife Communities Group stock overvalued right now?
Gemlife Communities Group (ASX:GLF) has a current Degree of Operating Leverage of -3.40. The current Degree of Operating Leverage is -3.40. Gemlife Communities Group's overall GF Score™ is 8/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Gemlife Communities Group (ASX:GLF), the current Degree of Operating Leverage is -3.40 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
GemLife Communities Group is a developer, builder, owner, and operator within Australia's Land Lease Community (LLC) sector. It provides premium resort-style living for homeowners aged 50 and over, designed to support a high-quality, active, and socially engaged lifestyle. GemLife focuses on delivering master-planned residential communities to senior downsizers, with homes that are low-maintenance and equipped with recreational and leisure facilities to support community-oriented living. It has two reportable segments: Development and Community Operations. Maximum revenue is generated from the Development segment, which develops the land and sells the home on behalf of the landowner. The Community Operations segment is responsible for the maintenance of the common areas of the communities.
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