GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Wynnstay Group PLC (LSE:WYN) » Definitions » Degree of Operating Leverage

Wynnstay Group (LSE:WYN) Degree of Operating Leverage : 2.59 (As of Oct. 2024)


View and export this data going back to 2004. Start your Free Trial

What is Wynnstay Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Wynnstay Group's Degree of Operating Leverage for the quarter that ended in Oct. 2024 was 2.59. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LSE:WYN's Degree of Operating Leverage is ranked worse than
65.59% of 247 companies
in the Agriculture industry
Industry Median: 0.92 vs LSE:WYN: 2.59

Wynnstay Group Degree of Operating Leverage Historical Data

The historical data trend for Wynnstay 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.

Wynnstay Group Degree of Operating Leverage Chart

Wynnstay Group Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.51 3.34 2.15 -16.90 2.59

Wynnstay Group Semi-Annual Data
Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24 Oct24
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 2.15 0.48 -16.90 3.07 2.59

Competitive Comparison of Wynnstay Group's Degree of Operating Leverage

For the Agricultural Inputs subindustry, Wynnstay 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.


Wynnstay Group's Degree of Operating Leverage Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Wynnstay Group's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Wynnstay Group Degree of Operating Leverage Calculation

Wynnstay Group's Degree of Operating Leverage for the quarter that ended in Oct. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 5.669 (Oct. 2024) / 9.989 (Oct. 2023) - 1 )/( 613.053 (Oct. 2024) / 735.877 (Oct. 2023) - 1 )
=-0.4325/-0.1669
=2.59***

* 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.


Wynnstay Group  (LSE:WYN) 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.


Wynnstay Group Degree of Operating Leverage Related Terms

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


Wynnstay Group Business Description

Traded in Other Exchanges
Address
Eagle House, Llansantffraid Ym Mechain, Powys, GBR, SY22 6AQ
Wynnstay Group PLC is a provider of agricultural supplies and services to farmers and rural communities in England and Wales. The company operates in three business segments, Feed and Grain, Fertiliser and Seed and Depot Merchanting. Key revenue is generated from Feed and Grain which includes manufactures and supplies a range of feeds and animal nutrition products for a range of sectors. It also sell a range of feed raw materials through both the Wynnstay and Glasson Grain brands and offer grain and combinable crop marketing services through the GrainLink business.

Wynnstay Group Headlines

No Headlines