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FRGAP.PFD (Franchise Group) Degree of Operating Leverage : 0.00 (As of Jun. 2023)


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What is Franchise Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Franchise Group's Degree of Operating Leverage for the quarter that ended in Jun. 2023 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRGAP.PFD's Degree of Operating Leverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 1.305
* Ranked among companies with meaningful Degree of Operating Leverage only.

Franchise Group Degree of Operating Leverage Historical Data

The historical data trend for Franchise Group'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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Franchise Group Degree of Operating Leverage Chart

Franchise Group Annual Data
Trend Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Dec20 Dec21 Dec22
Degree of Operating Leverage
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Franchise Group Quarterly Data
Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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Competitive Comparison of Franchise Group's Degree of Operating Leverage

For the Specialty Retail subindustry, Franchise Group'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.


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

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

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


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Franchise Group Degree of Operating Leverage Calculation

Franchise Group's Degree of Operating Leverage for the quarter that ended in Jun. 2023 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1.207 (Jun. 2023) / 468.852 (Jun. 2022) - 1 )/( 4310.872 (Jun. 2023) / 4001.569 (Jun. 2022) - 1 )
=-0.9974/0.0773
=-12.90***

* 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.


Franchise Group  (NAS:FRGAP.PFD) 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.


Franchise Group Degree of Operating Leverage Related Terms

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Franchise Group Business Description

Traded in Other Exchanges
N/A
Address
109 Innovation Court, Suite J, Delaware, OH, USA, 43015
Franchise Group Inc is a personal services company that provides retail federal and state income tax preparation services and related tax settlement products. The vast majority of these offices operate in the United States under the Liberty Tax Service and SiempreTax+ brand names. Liberty Tax also provides online do-it-yourself tax programs within the U.S. The sale of financial products and tax preparation service fees also contribute to sizable percentages of the company's total income. Liberty Tax also operates a smaller portfolio of wholly-owned company offices. The company's reportable segments are Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy's and Sylvan.
Executives
Daniel Meitner Ondeck 10 percent owner 13301 BEALL CREEK CT., POTOMAC MD 20854
Richard W Riley 10 percent owner B RILEY AND CO, 11100 SANTA MONICA BLVD STE 800, LOS ANGELES CA 90025
Randall E Paulson 10 percent owner
Kelleher Thomas J /adv 10 percent owner C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Gary S Rich director C/O THE READER'S DIGEST ASSOCIATION, READER'S DIGEST ROAD, PLEASANTVILLE NY 10570
Nanhi Singh director 109 INNOVATION COURT, SUITE J, DELAWARE OH 43015
Lee A. Wright officer: Chief Commercial Officer C/O DIAMOND CASTLE HOLDINGS, LLC, 280 PARK AVENUE, 25TH FLOOR, EAST TOWER, NEW YORK NY 10017
Cynthia S Dubin director 1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Lisa M Fairfax director 2387 LIBERTY WAY, VIRGINIA BEACH VA 23456
K Todd Evans officer: Chief Franchising Officer 309 E. PACES FERRY RD N.E., ATLANTA GA 30305-2377
Dialectic Antithesis Partners, Lp 10 percent owner 119 ROWAYTON AVENUE, 2ND FLOOR, NORWALK CT 06853
Brc Partners Management Gp, Llc 10 percent owner 11100 SANTA MONICA BLVD SUITE 800, LOS ANGELES CA 90025
B. Riley Securities, Inc. 10 percent owner 11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025
Br Dialectic Capital Management, Llc 10 percent owner 11100 SANTA MONICA BLVD., SUITE 800, LOS ANGELES CA 90025
Vintage Capital Management Llc director, 10 percent owner, officer: Chief Executive Officer 4705 S APOPKA VINELAND ROAD SUITE 210, ORLANDO FL 32819