GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Luvu Brands Inc (OTCPK:LUVU) » Definitions » Degree of Operating Leverage

LUVU (Luvu Brands) Degree of Operating Leverage : 340.39 (As of Mar. 2025)


View and export this data going back to 2007. Start your Free Trial

What is Luvu Brands Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Luvu Brands's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 340.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LUVU's Degree of Operating Leverage is ranked worse than
98.12% of 426 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.375 vs LUVU: 340.39

Luvu Brands Degree of Operating Leverage Historical Data

The historical data trend for Luvu Brands'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.

Luvu Brands Degree of Operating Leverage Chart

Luvu Brands Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.41 3.99 -4.84 5.79 5.59

Luvu Brands Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 6.94 5.59 8.07 5.51 340.39

Competitive Comparison of Luvu Brands's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Luvu Brands'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.


Luvu Brands's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Luvu Brands's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Luvu Brands Degree of Operating Leverage Calculation

Luvu Brands's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 0.18 (Mar. 2025) / -0.037 (Mar. 2024) - 1 )/( 24.527 (Mar. 2025) / 24.957 (Mar. 2024) - 1 )
=-5.8649/-0.0172
=340.39***

* 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.


Luvu Brands  (OTCPK:LUVU) 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.


Luvu Brands Degree of Operating Leverage Related Terms

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


Luvu Brands Business Description

Traded in Other Exchanges
N/A
Address
2745 Bankers Industrial Drive, Atlanta, GA, USA, 30360
Luvu Brands Inc designs, manufactures, and markets a portfolio of consumer lifestyle brands including Liberator, a brand category of iconic products for enhancing sensuality and intimacy; Avana, inclined bed therapy products, assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain; and Jaxx, a diverse range of casual fashion daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam. It conducts its business through three primary sales channels: Direct, Wholesale, and Others. The brands of the company involve Avana, Liberator, Jaxx, Panelist, CreAtl and Zipline.
Executives
Martin P Scott officer: Chief Financial Officer SIMPLEPONS, INC., C/O 220 CONGRESS PARK DRIVE, SUITE 304, DELRAY BEACH FL 33445
Alexander A. Sannikov officer: Chief Financial Officer 2745 BANKERS INDUSTRIAL DR, ATLANTA GA 30360
Ronald P Scott director, officer: CFO & Secretary 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Manuel Munoz officer: Chief Information Officer 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Louis S Friedman director, officer: President & CEO 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Sean Hougham officer: Vice President - Manufacturing 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Donald Cohen 10 percent owner 2745 BANKERS INDUSTRIAL DRIVE, DORAVILLE GA 30360
James Blanchard officer: Senior VP-Business Development 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Michael Kane officer: Executive Vice President 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Leslie Vogelman officer: Treasurer 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Rufina Bulatova officer: Vice President Online Market. 2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Fyodor Petrenko 10 percent owner, officer: Vice President 204 SALEM CT, APT 5, PRINCETON NJ 08540
David Wirth officer: Vice President - Operations 2745 BANKERS INDUSTRIAL DRIVE, DORAVILLE GA 30360
Belmont Partners, Llc 10 percent owner 360 MAIN STREET, P.O. BOX 393, WASHINGTON VA 22747
Joseph J Meuse director, officer: President 211 FALMOUTH STREET, WARRENTON VA 20186