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Shoppers Drug Mart (FRA:SDZ) Degree of Operating Leverage : 0.00 (As of Dec. 2013)


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What is Shoppers Drug Mart Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Shoppers Drug Mart's Degree of Operating Leverage for the quarter that ended in Dec. 2013 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRA:SDZ's Degree of Operating Leverage is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 0.51
* Ranked among companies with meaningful Degree of Operating Leverage only.

Shoppers Drug Mart Degree of Operating Leverage Historical Data

The historical data trend for Shoppers Drug Mart'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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Shoppers Drug Mart Degree of Operating Leverage Chart

Shoppers Drug Mart Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Degree of Operating Leverage
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Shoppers Drug Mart Quarterly Data
Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13
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Competitive Comparison of Shoppers Drug Mart's Degree of Operating Leverage

For the Pharmaceutical Retailers subindustry, Shoppers Drug Mart'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.


Shoppers Drug Mart's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Shoppers Drug Mart's Degree of Operating Leverage distribution charts can be found below:

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


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Shoppers Drug Mart Degree of Operating Leverage Calculation

Shoppers Drug Mart's Degree of Operating Leverage for the quarter that ended in Dec. 2013 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 592.173 (Dec. 2013) / 676.113 (Dec. 2012) - 1 )/( 7587.265 (Dec. 2013) / 8300.433 (Dec. 2012) - 1 )
=-0.1242/-0.0859
=1.44***

* 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.


Shoppers Drug Mart  (FRA:SDZ) 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.


Shoppers Drug Mart Degree of Operating Leverage Related Terms

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Shoppers Drug Mart Business Description

Traded in Other Exchanges
N/A
Address
Shoppers Drug Mart Corporation was founded in 1962. The Company is the licensor of full-service retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in Québec). The stores are owned and operated by the Company's licensed Associate-owners who have helped build a brand that is synonymous with exceptional service, value and trust. The Company also licenses or owns more than 55 medical clinic pharmacies operating under the name Shoppers Simply Pharmacy (Pharmaprix Simplement Santé in Québec) and six luxury beauty destinations operating as Murale. The Company owns and operates 62 Shoppers Home Health Care stores, which are engaged in the sale and service of assisted-living devices, medical equipment, home-care products and durable mobility equipment to institutional and retail customers. In addition to its retail store network, the Company owns Shoppers Drug Mart Specialty Health Network Inc., a provider of specialty drug distribution, pharmacy and comprehensive patient support services, and MediSystem Technologies Inc., a provider of pharmaceutical products and services to long-term care facilities.

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