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GIL (Gildan Activewear) Degree of Operating Leverage : 1.25 (As of Mar. 2025)


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What is Gildan Activewear Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Gildan Activewear's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

GIL's Degree of Operating Leverage is ranked worse than
52.53% of 1009 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.04 vs GIL: 1.25

Gildan Activewear Degree of Operating Leverage Historical Data

The historical data trend for Gildan Activewear'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.

Gildan Activewear Degree of Operating Leverage Chart

Gildan Activewear Annual Data
Trend Sep15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.85 -9.85 -0.17 4.74 -0.26

Gildan Activewear Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 5.25 -0.14 3.03 -0.26 1.25

Competitive Comparison of Gildan Activewear's Degree of Operating Leverage

For the Apparel Manufacturing subindustry, Gildan Activewear'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.


Gildan Activewear's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gildan Activewear's Degree of Operating Leverage distribution charts can be found below:

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


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Gildan Activewear Degree of Operating Leverage Calculation

Gildan Activewear's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 625.318 (Mar. 2025) / 597.708 (Mar. 2024) - 1 )/( 3286.466 (Mar. 2025) / 3188.844 (Mar. 2024) - 1 )
=0.0462/0.0306
=1.51***

* 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.


Gildan Activewear  (NYSE:GIL) 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.


Gildan Activewear Degree of Operating Leverage Related Terms

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Gildan Activewear Business Description

Traded in Other Exchanges
Address
600 de Maisonneuve Boulevard West, 33rd Floor, Suite 3300, Montreal, QC, CAN, H3A 3J2
Gildan is a vertically integrated designer and manufacturer of basic apparel, including t-shirts, underwear, socks, and hosiery. Its primary market is the sale of blank t-shirts, sweatshirts, and other apparel to wholesalers, major clothing brands, and printers (printwear). Gildan also sells branded clothing through retail and direct-to-consumer channels. Brands include Gildan, American Apparel, Comfort Colors, and Gold Toe. Gildan produces most of its clothing at factories in Latin America but has been ramping up production at its new facility in Bangladesh. Incorporated in 1984, the Montreal-based company operates internationally but generates nearly 90% of its sales in the US.