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Peet (ASX:PPC) Degree of Operating Leverage : -0.34 (As of Dec. 2024)


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What is Peet Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Peet's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -0.34. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ASX:PPC's Degree of Operating Leverage is ranked better than
68.5% of 1711 companies
in the Real Estate industry
Industry Median: 0.97 vs ASX:PPC: -0.34

Peet Degree of Operating Leverage Historical Data

The historical data trend for Peet'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.

Peet Degree of Operating Leverage Chart

Peet 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 5.81 -14.93 -19,990.06 0.67 6.87

Peet 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 6.13 0.67 -2.42 6.87 -0.34

Competitive Comparison of Peet's Degree of Operating Leverage

For the Real Estate - Development subindustry, Peet'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.


Peet's Degree of Operating Leverage Distribution in the Real Estate Industry

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

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



Peet Degree of Operating Leverage Calculation

Peet'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
=( 68.421 (Dec. 2024) / 70.355 (Dec. 2023) - 1 )/( 315.742 (Dec. 2024) / 292.363 (Dec. 2023) - 1 )
=-0.0275/0.08
=-0.34***

* 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.


Peet  (ASX:PPC) 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.


Peet Degree of Operating Leverage Related Terms

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Peet Business Description

Industry
Traded in Other Exchanges
N/A
Address
200 Street Georges Terrace, Level 7, Perth, WA, AUS, 6000
Peet Ltd acquires, develops, and markets residential land, predominantly under a capital-efficient funds management model. The company earns revenue from the sale of land, underwriting, capital raising, and asset identification services; Ongoing project-related fees mainly project management, selling fees, and performance fees. It operates in the following segment: Funds management; Company-owned projects; Joint arrangements Inter segment transfers and other unallocated. The Company-owned projects segment accounts for the majority of revenue.