GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Orchard Funding Group PLC (LSE:ORCH) » Definitions » Degree of Operating Leverage

Orchard Funding Group (LSE:ORCH) Degree of Operating Leverage : 0.54 (As of Jan. 2025)


View and export this data going back to 2015. Start your Free Trial

What is Orchard Funding Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Orchard Funding Group's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 0.54. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LSE:ORCH's Degree of Operating Leverage is ranked better than
58.38% of 382 companies
in the Credit Services industry
Industry Median: 0.855 vs LSE:ORCH: 0.54

Orchard Funding Group Degree of Operating Leverage Historical Data

The historical data trend for Orchard Funding 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.

Orchard Funding Group Degree of Operating Leverage Chart

Orchard Funding Group Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.22 2.53 2.27 0.57 -0.11

Orchard Funding Group Semi-Annual Data
Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25
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 1.31 0.57 0.71 -0.11 0.54

Competitive Comparison of Orchard Funding Group's Degree of Operating Leverage

For the Credit Services subindustry, Orchard Funding 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.


Orchard Funding Group's Degree of Operating Leverage Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Orchard Funding Group's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Orchard Funding Group Degree of Operating Leverage Calculation

Orchard Funding Group's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 2.726 (Jan. 2025) / 2.488 (Jan. 2024) - 1 )/( 10.31 (Jan. 2025) / 8.747 (Jan. 2024) - 1 )
=0.0957/0.1787
=0.54***

* 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.


Orchard Funding Group  (LSE:ORCH) 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.


Orchard Funding Group Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Orchard Funding Group's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Orchard Funding Group Business Description

Traded in Other Exchanges
N/A
Address
222 Armstrong Road, Luton, Bedfordshire, GBR, LU2 0FY
Orchard Funding Group PLC is a finance company that specializes in insurance premium finance and the professional fee funding market. The company mainly provides funding and funding support systems to clients of insurance brokers and professional firms. It aims to further increase the capital base to enable it to support higher levels of borrowing. It operates in two segments: lending for Toyota products, and other lending. The company operates within the United Kingdom.

Orchard Funding Group Headlines

No Headlines