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Chapel Down Group (LSE:CDGP) Degree of Operating Leverage : 27.44 (As of Dec. 2024)


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What is Chapel Down Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Chapel Down Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 27.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LSE:CDGP's Degree of Operating Leverage is ranked worse than
90.87% of 208 companies
in the Beverages - Alcoholic industry
Industry Median: 1.385 vs LSE:CDGP: 27.44

Chapel Down Group Degree of Operating Leverage Historical Data

The historical data trend for Chapel Down 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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Chapel Down Group Degree of Operating Leverage Chart

Chapel Down Group Annual Data
Trend Dec15 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 15.46 0.46 -1.31 5.76 27.44

Chapel Down Group Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Dec19 Dec20 Dec21 Dec22 Jun23 Dec23 Jun24 Dec24
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 -1.31 - 5.76 -0.89 27.44

Competitive Comparison of Chapel Down Group's Degree of Operating Leverage

For the Beverages - Wineries & Distilleries subindustry, Chapel Down 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.


Chapel Down Group's Degree of Operating Leverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Chapel Down Group's Degree of Operating Leverage distribution charts can be found below:

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


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Chapel Down Group Degree of Operating Leverage Calculation

Chapel Down Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.89 (Dec. 2024) / 2.5 (Dec. 2023) - 1 )/( 16.351 (Dec. 2024) / 17.201 (Dec. 2023) - 1 )
=-1.356/-0.0494
=27.44***

* 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.


Chapel Down Group  (LSE:CDGP) 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.


Chapel Down Group Degree of Operating Leverage Related Terms

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Chapel Down Group Business Description

Traded in Other Exchanges
Address
Small Hythe Road, Chapel Down Winery, Tenterden, Kent, GBR, TN30 7NG
Chapel Down Group PLC operates in the beverage industry in the United Kingdom. The company is engaged as a producer and supplier of sparkling wine and still wine. The product categories of the company are wines, vodka, and brandy and the product portfolio of the company include Chapel Down Bacchus Gin, Brandy and Glasses Gift sets, and Chapel Down Chardonnay Vodka. Geographically, the company derives a majority of its revenue from the United Kingdom and also has a presence in Rest of Europe and Rest of the world.

Chapel Down Group Headlines

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