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Growthpoint Properties Australia (ASX:GOZ) Degree of Operating Leverage : 2.82 (As of Dec. 2024)


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What is Growthpoint Properties Australia Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Growthpoint Properties Australia's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 2.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Growthpoint Properties Australia's Degree of Operating Leverage or its related term are showing as below:

ASX:GOZ's Degree of Operating Leverage is ranked worse than
66.17% of 742 companies
in the REITs industry
Industry Median: 1.195 vs ASX:GOZ: 2.82

Growthpoint Properties Australia Degree of Operating Leverage Historical Data

The historical data trend for Growthpoint Properties Australia'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.

Growthpoint Properties Australia Degree of Operating Leverage Chart

Growthpoint Properties Australia Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.73 169.93 -2.74 -13.90 -7.01

Growthpoint Properties Australia Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 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 -6.59 -13.90 116.84 -7.01 2.82

Competitive Comparison of Growthpoint Properties Australia's Degree of Operating Leverage

For the REIT - Office subindustry, Growthpoint Properties Australia'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.


Growthpoint Properties Australia's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Growthpoint Properties Australia's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Growthpoint Properties Australia's Degree of Operating Leverage falls into.


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Growthpoint Properties Australia Degree of Operating Leverage Calculation

Growthpoint Properties Australia'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
=( -191.3 (Dec. 2024) / -175.5 (Dec. 2023) - 1 )/( 326.2 (Dec. 2024) / 316.1 (Dec. 2023) - 1 )
=0.09/0.032
=2.82***

* 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.


Growthpoint Properties Australia  (ASX:GOZ) 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.


Growthpoint Properties Australia Degree of Operating Leverage Related Terms

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Growthpoint Properties Australia Business Description

Traded in Other Exchanges
Address
Level 18, 101 Collins Street, Melbourne, VIC, AUS, 3000
Growthpoint Properties Australia is an internally managed Australian REIT, with commercial property investments split circa 65/35 between Australian office and industrial assets. Its assets are typically smaller, but it has maintained high occupancy at its sites. Historically the REIT did not undertake funds management activities but it purchased fund manager Fortius in September 2022. The REIT usually limits speculative property development, though it built an office development in suburban Melbourne. The asset was completely vacant on completion, but Growthpoint was able to attract tenants and it is now occupied.

Growthpoint Properties Australia Headlines

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