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Giglio Group SpA (MIL:GG) Degree of Operating Leverage : 6.87 (As of Jun. 2024)


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What is Giglio Group SpA Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Giglio Group SpA's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 6.87. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MIL:GG's Degree of Operating Leverage is ranked worse than
79.62% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.305 vs MIL:GG: 6.87

Giglio Group SpA Degree of Operating Leverage Historical Data

The historical data trend for Giglio Group SpA'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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Giglio Group SpA Degree of Operating Leverage Chart

Giglio Group SpA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -278.84 -5.44 -16.72 2.51 -66.27

Giglio Group SpA Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Jun24
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 1.23 2.83 3.57 -66.27 6.87

Competitive Comparison of Giglio Group SpA's Degree of Operating Leverage

For the Internet Retail subindustry, Giglio Group SpA'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.


Giglio Group SpA's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

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

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


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Giglio Group SpA Degree of Operating Leverage Calculation

Giglio Group SpA's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -3.674 (Jun. 2024) / 1.113 (Jun. 2023) - 1 )/( 5.834 (Jun. 2024) / 15.608 (Jun. 2023) - 1 )
=-4.301/-0.6262
=6.87***

* 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.


Giglio Group SpA  (MIL:GG) 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.


Giglio Group SpA Degree of Operating Leverage Related Terms

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Giglio Group SpA Business Description

Traded in Other Exchanges
N/A
Address
Piazza Diaz 6, Milan, ITA, 20123
Giglio Group SpA is engaged in the e-commerce of high-end fashion products, in the design products' sector and in the food segment.. It offers tailor-made B2B and B2C services to the Luxury Fashion industry as well as other industries, mainly with "Made in Italy" brands. It operates through the below segments: B2B e-commerce, B2C e-commerce and Corporate. It generates majority revenue from the B2B e-commerce.