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JDDSF (JD Sports Fashion) Degree of Operating Leverage : 4.52 (As of Jul. 2024)


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What is JD Sports Fashion Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. JD Sports Fashion's Degree of Operating Leverage for the quarter that ended in Jul. 2024 was 4.52. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

JDDSF's Degree of Operating Leverage is ranked worse than
72.8% of 1092 companies
in the Retail - Cyclical industry
Industry Median: 1.34 vs JDDSF: 4.52

JD Sports Fashion Degree of Operating Leverage Historical Data

The historical data trend for JD Sports Fashion'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.

JD Sports Fashion Degree of Operating Leverage Chart

JD Sports Fashion 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 0.79 -10.71 2.25 -1.19 15.03

JD Sports Fashion Semi-Annual Data
Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24
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 -0.33 -1.19 -0.33 15.03 4.52

Competitive Comparison of JD Sports Fashion's Degree of Operating Leverage

For the Apparel Retail subindustry, JD Sports Fashion'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.


JD Sports Fashion's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

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

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


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JD Sports Fashion Degree of Operating Leverage Calculation

JD Sports Fashion's Degree of Operating Leverage for the quarter that ended in Jul. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 899.245 (Jul. 2024) / 790.152 (Jul. 2023) - 1 )/( 13792.966 (Jul. 2024) / 13150.01 (Jul. 2023) - 1 )
=0.1381/0.0489
=2.82***

* 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.


JD Sports Fashion  (OTCPK:JDDSF) 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.


JD Sports Fashion Degree of Operating Leverage Related Terms

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JD Sports Fashion Business Description

Traded in Other Exchanges
Address
Hollinsbrook Way, Pilsworth, Bury, Lancashire, GBR, BL9 8RR
JD Sports Fashion PLC is a U.K. retailer of branded sportswear and fashionwear. The company has stores in the United Kingdom, mainland Europe, and outside Europe. The offering includes international brands, such as Adidas, Nike, and The North Face, and own-brand labels, such as McKenzie, Carbrini, Supply & Demand, and The Duffer of St George. The store network consists of various shops: Size?, Footpatrol, Chausport, Sprinter, Scotts, Tessuti, Cloggs, Mainline, and Ultimate Outdoors, among others. Stores are specialized: Footpatrol is a sneaker provider; Size? offers footwear, apparel, and accessories; and Chausport operates throughout France selling international footwear brands, such as Nike.

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