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EWCZ (European Wax Center) Degree of Operating Leverage : -219.09 (As of Sep. 2024)


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What is European Wax Center Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. European Wax Center's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -219.09. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EWCZ's Degree of Operating Leverage is ranked better than
98.69% of 1835 companies
in the Consumer Packaged Goods industry
Industry Median: 1.15 vs EWCZ: -219.09

European Wax Center Degree of Operating Leverage Historical Data

The historical data trend for European Wax Center'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.

European Wax Center Degree of Operating Leverage Chart

European Wax Center Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
- - -11.77 -10.31 -58.38

European Wax Center Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -13.66 -58.38 -79.01 -191.62 -219.09

Competitive Comparison of European Wax Center's Degree of Operating Leverage

For the Household & Personal Products subindustry, European Wax Center'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.


European Wax Center's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, European Wax Center's Degree of Operating Leverage distribution charts can be found below:

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



European Wax Center Degree of Operating Leverage Calculation

European Wax Center's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 47.275 (Sep. 2024) / -10.997 (Sep. 2023) - 1 )/( 223.5 (Sep. 2024) / 218.222 (Sep. 2023) - 1 )
=-5.2989/0.0242
=-219.09***

* 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.


European Wax Center  (NAS:EWCZ) 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.


European Wax Center Degree of Operating Leverage Related Terms

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


European Wax Center Business Description

Traded in Other Exchanges
N/A
Address
5830 Granite Parkway, 3rd Floor, Plano, TX, USA, 75024
European Wax Center Inc is a franchisor and operator of OOH waxing services. Its product sales consist of revenue earned from sales of proprietary wax.
Executives
Cindy Thomassee officer: SVP Accounting/Controller 3480 WEST 12TH STREET, HOUSTON TX 77008
Andrea Lyn Wasserman officer: Chief Commercial Officer C/O EUROPEAN WAX CENTER, INC., 5830 GRANITE PARKWAY, 3RD FLOOR, PLANO TX 75024
Stacie Shirley officer: CFO TUESDAY MORNING CORPORATION, 6250 LBJ FREEWAY, DALLAS TX 75240
Julie Hauser-blanner officer: SVP Ops, Field Tr. & Ind. Eng. C/O EUROPEAN WAX CENTER, INC., 5830 GRANITE PARKWAY, 3RD FLOOR, PLANO TX 75024
Ewc Holdings, Inc. 10 percent owner 15511 FISHER ISLAND DRIVE, FISHER ISLAND FL 37495
General Atlantic Partners Aiv-1 A, L.p. director, 10 percent owner 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Gapco Aiv Holdings, L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Ga Aiv-1 B Interholdco (ew), L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Genpar (ew), L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Partners Aiv (ew), L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Gapco Aiv Interholdco (ew), L.p. director, 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Partners Aiv-1 B, L.p. director, 10 percent owner 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055
Gap Coinvestments V, Llc director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic (spv) Gp, Llc director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic, L.p. director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055