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NGVC (Natural Grocers by Vitamin Cottage) Degree of Operating Leverage : 4.65 (As of Mar. 2025)


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What is Natural Grocers by Vitamin Cottage Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Natural Grocers by Vitamin Cottage's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.65. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Natural Grocers by Vitamin Cottage's Degree of Operating Leverage or its related term are showing as below:

NGVC's Degree of Operating Leverage is ranked worse than
78.55% of 303 companies
in the Retail - Defensive industry
Industry Median: 0.98 vs NGVC: 4.65

Natural Grocers by Vitamin Cottage Degree of Operating Leverage Historical Data

The historical data trend for Natural Grocers by Vitamin Cottage'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.

Natural Grocers by Vitamin Cottage Degree of Operating Leverage Chart

Natural Grocers by Vitamin Cottage Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.44 1.16 2.00 1.07 5.46

Natural Grocers by Vitamin Cottage 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 8.20 6.51 5.46 4.01 4.65

Competitive Comparison of Natural Grocers by Vitamin Cottage's Degree of Operating Leverage

For the Grocery Stores subindustry, Natural Grocers by Vitamin Cottage'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.


Natural Grocers by Vitamin Cottage's Degree of Operating Leverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Natural Grocers by Vitamin Cottage's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Natural Grocers by Vitamin Cottage's Degree of Operating Leverage falls into.


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Natural Grocers by Vitamin Cottage Degree of Operating Leverage Calculation

Natural Grocers by Vitamin Cottage'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
=( 55.814 (Mar. 2025) / 38.885 (Mar. 2024) - 1 )/( 1297.733 (Mar. 2025) / 1186.708 (Mar. 2024) - 1 )
=0.4354/0.0936
=4.65***

* 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.


Natural Grocers by Vitamin Cottage  (NYSE:NGVC) 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.


Natural Grocers by Vitamin Cottage Degree of Operating Leverage Related Terms

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Natural Grocers by Vitamin Cottage Business Description

Traded in Other Exchanges
Address
12612 West Alameda Parkway, Lakewood, CO, USA, 80228
Natural Grocers by Vitamin Cottage Inc operates natural and organic grocery and dietary supplement stores. It offers the following product categories, natural and organic food, dietary supplements, natural body care, household, pet care products, books and handouts. The Company has a single reporting segment, natural and organic retail stores, through which business are conducted. The company generates the majority of its revenue from grocery products and dietary supplements and rest from other products.
Executives
Charity Isely other: 13D Group Member 12612 W. ALAMEDA PARKWAY, LAKEWOOD CO 80228
Lark Isely other: 13D Group Member 12612 W. ALAMEDA PARKWAY, LAKEWOOD CO 80228
Todd Dissinger officer: Chief Financial Officer C/O NATURAL GROCERS BY VITAMIN COTTAGE, 12612 W. ALAMEDA PKWY., LAKEWOOD CO 80228
Dyami Isely-parvanta other: 13D Group Member 12612 WEST ALAMEDA PKWY., LAKEWOOD CO 80228
Heather C. Isely 2012 Irrevocable Family Trust other: 13D Group Member PO BOX 260169, LAKEWOOD CO 80226-0169
Kemper & Virginia Isely 2012 Irrevocable Family Trust other: 13D Group Member PO BOX 260169, LAKEWOOD CO 80226-0169
Elizabeth Isely 2012 Irrevocable Family Trust other: 13D Group Member PO BOX 260169, LAKEWOOD CO 80226-0169
Zephyr Isely 2012 Irrevocable Family Trust other: 13D Group Member PO BOX 260169, LAKEWOOD CO 80226-0169
Robert Linnane other: 13D Group Member 12612 WEST ALAMEDA PARKWAY, LAKEWOOD CO 80228
Charles Isely-rice other: 13D Group Member 12612 WEST ALAMEDA PKWY, LAKEWOOD CO 80228
David C. Rooney director 12612 W. ALAMEDA PKWY., LAKEWOOD CO 80228
Ritchie K. Isely other: 13D Group Member 12612 WEST ALAMEDA PARKWAY, LAKEWOOD CO 80228
Masala Isely-rice other: 13D Group Member 12612 WEST ALAMEDA PARKWAY, LAKEWOOD CO 80228
Sandra Buffa officer: Chief Financial Officer 12612 W. ALAMEDA PARKWAY, LAKEWOOD CO 80228
Elizabeth Isely director, officer: Executive Vice President 12612 W. ALAMEDA PARKWAY, LAKEWOOD CO 80228