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Lojas Quero-Quero (BSP:LJQQ3) Degree of Operating Leverage : -7.12 (As of Mar. 2025)


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What is Lojas Quero-Quero Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lojas Quero-Quero's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -7.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BSP:LJQQ3's Degree of Operating Leverage is ranked better than
87.29% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.305 vs BSP:LJQQ3: -7.12

Lojas Quero-Quero Degree of Operating Leverage Historical Data

The historical data trend for Lojas Quero-Quero'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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Lojas Quero-Quero Degree of Operating Leverage Chart

Lojas Quero-Quero Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.88 -0.56 -3.84 11.99 -

Lojas Quero-Quero Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 65.34 25.96 24.38 - -7.12

Competitive Comparison of Lojas Quero-Quero's Degree of Operating Leverage

For the Specialty Retail subindustry, Lojas Quero-Quero'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.


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

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

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


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Lojas Quero-Quero Degree of Operating Leverage Calculation

Lojas Quero-Quero's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 9.363 (Mar. 2025) / 199.892 (Mar. 2024) - 1 )/( 2749.524 (Mar. 2025) / 2424.781 (Mar. 2024) - 1 )
=-0.9532/0.1339
=-7.12***

* 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.


Lojas Quero-Quero  (BSP:LJQQ3) 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.


Lojas Quero-Quero Degree of Operating Leverage Related Terms

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Lojas Quero-Quero Business Description

Traded in Other Exchanges
N/A
Address
Avenida General Flores da Cunha, 1943, Vila Cachoeirinha, Cachoeirinha, RS, BRA, 94910-003
Lojas Quero-Quero SA is engaged in providing integrated solutions to customers, with a comprehensive portfolio of construction materials, home appliances, and furniture, to meet their needs in the household goods and construction segment. It currently has stores distributed in the states of Rio Grande do Sul, Santa Cataria, Parana, Mato Grosso do Sul, and Sao Paulo, in addition to three distribution centers. The company has one operating segment, which consists of revenues obtained from retail activities, financial services, and credit cards on a segregated basis.

Lojas Quero-Quero Headlines

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