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DFS Furniture (CHIX:DFSL) Degree of Operating Leverage : 2.07 (As of Dec. 2024)


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What is DFS Furniture Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. DFS Furniture's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 2.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CHIX:DFSl's Degree of Operating Leverage is ranked worse than
59.8% of 1092 companies
in the Retail - Cyclical industry
Industry Median: 1.32 vs CHIX:DFSl: 2.07

DFS Furniture Degree of Operating Leverage Historical Data

The historical data trend for DFS Furniture'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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DFS Furniture Degree of Operating Leverage Chart

DFS Furniture Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.42 -8.68 -4.21 4.89 4.07

DFS Furniture Semi-Annual Data
Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 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 -1.20 4.89 1.82 4.07 2.07

Competitive Comparison of DFS Furniture's Degree of Operating Leverage

For the Specialty Retail subindustry, DFS Furniture'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.


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

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

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


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DFS Furniture Degree of Operating Leverage Calculation

DFS Furniture'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
=( 54.3 (Dec. 2024) / 62 (Dec. 2023) - 1 )/( 986.5 (Dec. 2024) / 1049.5 (Dec. 2023) - 1 )
=-0.1242/-0.06
=2.07***

* 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.


DFS Furniture  (CHIX:DFSl) 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.


DFS Furniture Degree of Operating Leverage Related Terms

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DFS Furniture Business Description

Traded in Other Exchanges
Address
Adwick-le-Street, 1 Rockingham Way, Redhouse Interchange, Doncaster, GBR, DN6 7NA
DFS Furniture PLC is an upholstery retailer in the United Kingdom. It is engaged in designing, manufacturing, selling, delivering, and installing a range of sofas, and other upholstered and furniture products. The company's segment includes DFS; Sofology and others. It generates maximum revenue from the DFS segment. DFS segment includes the retailing of upholstered furniture and related products through DFS and Dwell branded stores and websites. Geographically, the company generates a majority of its revenue from the United Kingdom and the rest from the Republic of Ireland.

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