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IG Design Group (LSE:IGR) Degree of Operating Leverage : 6.15 (As of Sep. 2024)


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What is IG Design Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. IG Design Group's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 6.15. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LSE:IGR's Degree of Operating Leverage is ranked worse than
78.81% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 1.29 vs LSE:IGR: 6.15

IG Design Group Degree of Operating Leverage Historical Data

The historical data trend for IG Design 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.

* Premium members only.

IG Design Group Degree of Operating Leverage Chart

IG Design Group Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.21 11.25 -7.26 -52.54 20.83

IG Design Group Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 1.18 -52.54 7.68 20.83 6.15

Competitive Comparison of IG Design Group's Degree of Operating Leverage

For the Specialty Retail subindustry, IG Design 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.


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

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

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


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IG Design Group Degree of Operating Leverage Calculation

IG Design Group's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -2.023 (Sep. 2024) / -9.84 (Sep. 2023) - 1 )/( 577.333 (Sep. 2024) / 662.951 (Sep. 2023) - 1 )
=-0.7944/-0.1291
=6.15***

* 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.


IG Design Group  (LSE:IGR) 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.


IG Design Group Degree of Operating Leverage Related Terms

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IG Design Group Business Description

Traded in Other Exchanges
Address
Howard Way, Howard House, Interchange Park, Newport Pagnell, GBR, MK16 9PX
IG Design Group PLC is a UK-based company that operates in a single segment of design, manufacture, and distribution of Celebrations, Craft and creative play, Stationery, Gifting, and 'Not-for-resale' consumable products. Its Celebrations products are greetings cards, gift wrap, Christmas crackers, gift bags, and partyware. Gifting items include food and non-food gifts, photo Frames and Albums, and Calendars. Its Craft product ranges include Ribbons and Trim, Sewing Patterns, Buttons, Needlecrafts, and Kids Craft lines. The not-For-resale category includes Paper Twist Handle Bags and Polaris. It operates in two geographical segments: DG Americas, which includes overseas operations; and DG International, which consists of the UK and associated Asian operations, Europe, and Australia.

IG Design Group Headlines

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