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ATZAF (Aritzia) Degree of Operating Leverage : 6.17 (As of Feb. 2025)


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What is Aritzia Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Aritzia's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 6.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ATZAF's Degree of Operating Leverage is ranked worse than
78.7% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.295 vs ATZAF: 6.17

Aritzia Degree of Operating Leverage Historical Data

The historical data trend for Aritzia'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.

Aritzia Degree of Operating Leverage Chart

Aritzia 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 5.15 4.70 0.44 -7.16 6.17

Aritzia 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 -7.16 -7.63 -0.48 3.76 6.17

Competitive Comparison of Aritzia's Degree of Operating Leverage

For the Apparel Retail subindustry, Aritzia'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.


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

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

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


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Aritzia Degree of Operating Leverage Calculation

Aritzia'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
=( 237.045 (Feb. 2025) / 121.071 (Feb. 2024) - 1 )/( 1914.898 (Feb. 2025) / 1727.667 (Feb. 2024) - 1 )
=0.9579/0.1084
=8.84***

* 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.


Aritzia  (OTCPK:ATZAF) 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.


Aritzia Degree of Operating Leverage Related Terms

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Aritzia Business Description

Traded in Other Exchanges
Address
611 Alexander Street, Suite 118, Vancouver, BC, CAN, V6A 1E1
Aritzia Inc is an integrated design house of exclusive fashion brands. It designs apparel and accessories for its collection of exclusive brands and sells them under the Aritzia banner. The category of products offered by the firm is blouses, T-shirts, pants, dresses, sweaters, jackets and coats, skirts, shorts, jumpsuits, and accessories. The company reports as a single segment and includes all sales channels accessed by the company's clients, including sales through the company's eCommerce website and sales at the company's boutiques. Its geographical segments include Canada and the United States. The company generates the majority of its revenue from Retail, followed by e-commerce.