GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Stanley Lifestyles Ltd (NSE:STANLEY) » Definitions » Degree of Operating Leverage

Stanley Lifestyles (NSE:STANLEY) Degree of Operating Leverage : 4.14 (As of Mar. 2025)


View and export this data going back to 2024. Start your Free Trial

What is Stanley Lifestyles Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Stanley Lifestyles's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.14. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NSE:STANLEY's Degree of Operating Leverage is ranked worse than
73.46% of 422 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.215 vs NSE:STANLEY: 4.14

Stanley Lifestyles Degree of Operating Leverage Historical Data

The historical data trend for Stanley Lifestyles'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.

Stanley Lifestyles Degree of Operating Leverage Chart

Stanley Lifestyles Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
- 3.79 0.98 -1.19 4.14

Stanley Lifestyles Quarterly Data
Mar21 Mar22 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 -1.19 1.51 0.93 56.38 4.14

Competitive Comparison of Stanley Lifestyles's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Stanley Lifestyles'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.


Stanley Lifestyles's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

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

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


;
;

Stanley Lifestyles Degree of Operating Leverage Calculation

Stanley Lifestyles'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
=( 546 (Mar. 2025) / 581 (Mar. 2024) - 1 )/( 4262 (Mar. 2025) / 4325 (Mar. 2024) - 1 )
=-0.0602/-0.0146
=4.14***

* 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.


Stanley Lifestyles  (NSE:STANLEY) 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.


Stanley Lifestyles Degree of Operating Leverage Related Terms

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


Stanley Lifestyles Business Description

Traded in Other Exchanges
Address
Hosur Road, SY No. 16/2 and 16/3 Part, Veerasandra Village, Attibele Hobli, Anekal Taluk, Bengaluru, KA, IND, 560 100
Stanley Lifestyles Ltd designs and manufactures super-premium, luxury, and ultra-luxury furniture and sells it through its brand Stanley. The company designs, manufactures, and retails its products through its own network of pan-India stores. The Company has a single business segment namely, the business of manufacturing and trading of furniture and leather products.

Stanley Lifestyles Headlines

No Headlines