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CONNQ (Conn's) Degree of Operating Leverage : 0.00 (As of Jan. 2024)


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What is Conn's Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Conn's's Degree of Operating Leverage for the quarter that ended in Jan. 2024 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CONNQ's Degree of Operating Leverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 1.295
* Ranked among companies with meaningful Degree of Operating Leverage only.

Conn's Degree of Operating Leverage Historical Data

The historical data trend for Conn's'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.

Conn's Degree of Operating Leverage Chart

Conn's Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.33 7.51 29.85 7.55 -2.25

Conn's Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 7.55 - - - -2.25

Competitive Comparison of Conn's's Degree of Operating Leverage

For the Specialty Retail subindustry, Conn's'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.


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

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

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


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Conn's Degree of Operating Leverage Calculation

Conn's's Degree of Operating Leverage for the quarter that ended in Jan. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -34.642 (Jan. 2024) / -29.472 (Jan. 2023) - 1 )/( 1237.683 (Jan. 2024) / 1342.527 (Jan. 2023) - 1 )
=0.1754/-0.0781
=-2.25***

* 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.


Conn's  (OTCPK:CONNQ) 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.


Conn's Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Conn's's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Conn's Business Description

Traded in Other Exchanges
N/A
Address
2445 Technology Forest Boulevard, Suite 800, The Woodlands, TX, USA, 77381
Conn's Inc is a us-based specialty retailer selling durable consumer goods and related services. The company operates through two segments: retail and credit. The retail segment sells furniture, home appliances, electronics, and more. The credit segment provides credit solutions for credit-constrained consumers. They focus on the us market and offer competitive prices, affordable payment options, and fast delivery and installation. Conn's Inc primarily focuses on the us market and generates its revenue from the retail segment. They offer customers the opportunity to compare prices across brands with confidence, along with affordable monthly payment options, fast delivery and installation in the majority of their markets, and product repair services.
Executives
Douglas H Martin director, 10 percent owner C/O STEPHENS INC, 111 CENTER ST, LITTLE ROCK AR 72201
Stephens Group, Llc 10 percent owner 100 RIVER BLUFF DRIVE, SUITE 500, LITTLE ROCK AR 72202
Ann B Gugino director 1031 MENDOTA HEIGHTS ROAD, ST. PAUL MN 55120
Timothy P Santo officer: Chief Accounting Officer 2445 TECHNOLOGY FOREST BLVD., STE. 800, THE WOODLANDS TX 77381
Karen Hartje director 251 1ST AVENUE N, SUITE 200, MINNEAPOLIS MN 55401-1672
Paula W. & John P. Calhoun Family Trust - Wmas 10 percent owner 111 CENTER STREET, SUITE 2300, LITTLE ROCK AR 72201
Warren Miles Amerine Stephens Family Trust One 10 percent owner 111 CENTER STREET, SUITE 2300, LITTLE ROCK AR 72201
Brian Daly officer: Chief Human Resources Officer 4055 TECHNOLOGY FOREST BLVD., STE. 210, THE WOODLANDS TX 77381
Warren A Stephens 10 percent owner 111 CENTER STREET, LITTLE ROCK AR 72201
Harriet C Stephens 10 percent owner C/O STEPHENS INC, 111 CENTER ST, LITTLE ROCK AR 72201
Was Family Trust Five 10 percent owner 111 CENTER STREET, SUITE 2300, LITTLE ROCK AR 72201
Stephens Warren A Trust Uid 9/30/87 10 percent owner C/O STEPHENS INC, 111 CENTER ST, LITTLE ROCK AR 72201
Thomas John Fenton officer: Chief Credit Officer 2445 TECHNOLOGY FOREST BLVD., SUITE 800, THE WOODLANDS TX 77381
Warren Miles Stephens 10 percent owner 111 CENTER STREET, SUITE 2300, LITTLE ROCK AR 72201
John Calhoun Stephens 10 percent owner 111 CENTER STREET, SUITE 2300, LITTLE ROCK AR 72201