GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Ocado Group PLC (OTCPK:OCDGF) » Definitions » Degree of Operating Leverage

OCDGF (Ocado Group) Degree of Operating Leverage : 2.75 (As of Nov. 2024)


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

What is Ocado Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ocado Group's Degree of Operating Leverage for the quarter that ended in Nov. 2024 was 2.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OCDGF's Degree of Operating Leverage is ranked worse than
74.83% of 302 companies
in the Retail - Defensive industry
Industry Median: 0.9 vs OCDGF: 2.75

Ocado Group Degree of Operating Leverage Historical Data

The historical data trend for Ocado 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.

Ocado Group Degree of Operating Leverage Chart

Ocado Group Annual Data
Trend Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.11 -423.65 391.79 0.92 2.75

Ocado Group Semi-Annual Data
May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24
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 391.79 10.04 0.92 1.72 2.75

Competitive Comparison of Ocado Group's Degree of Operating Leverage

For the Grocery Stores subindustry, Ocado 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.


Ocado Group's Degree of Operating Leverage Distribution in the Retail - Defensive Industry

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

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


;
;

Ocado Group Degree of Operating Leverage Calculation

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

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -313.503 (Nov. 2024) / -249.502 (Nov. 2023) - 1 )/( 1547.261 (Nov. 2024) / 1395.647 (Nov. 2023) - 1 )
=0.2565/0.1086
=2.36***

* 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.


Ocado Group  (OTCPK:OCDGF) 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.


Ocado Group Degree of Operating Leverage Related Terms

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


Ocado Group Business Description

Traded in Other Exchanges
Address
Mosquito Way, Buildings One and Two Trident Place, Hatfield Business Park, Hatfield, Hertfordshire, GBR, AL10 9UL
Founded in 2000, Ocado provides warehouse automation and logistics solutions to grocers. Ocado operates in two segments: logistics and solutions. Logistics provides fulfillment and delivery services in the United Kingdom. Solutions is based on the Ocado Smart Platform, a modular, automated online retail fulfillment and delivery solution that provides software, fulfillment hardware, and support services to corporate customers in return for upfront and recurring fees. Partners include leading grocers around the world, like Sobeys, Morrisons, ICA, Groupe Casino, Bon Preu, Kroger, and Coles. Ocado also has a 50% stake in Ocado Retail, a pure-play e-grocery business. The other 50% is owned by Marks & Spencer.

Ocado Group Headlines

From GuruFocus

Full Year 2021 Ocado Group PLC Earnings Call Transcript

By GuruFocus Research 02-14-2024

Ocado Group PLC Trading Statement Call Transcript

By GuruFocus Research 02-14-2024

Half Year 2021 Ocado Group PLC Earnings Call Transcript

By GuruFocus Research 02-14-2024

Full Year 2020 Ocado Group PLC Earnings Call Transcript

By GuruFocus Research 02-14-2024

Ocado Group PLC Cash Flow Modelling Seminar Transcript

By GuruFocus Research 02-14-2024

Q1 2021 Ocado Group PLC Trading Statement Call Transcript

By GuruFocus Research 02-14-2024

Q3 2020 Ocado Group PLC Trading Statement Call Transcript

By GuruFocus Research 02-14-2024

Q3 2022 Ocado Retail Trading Statement Call Transcript

By GuruFocus Research 02-14-2024

Half Year 2022 Ocado Group PLC Earnings Call Transcript

By GuruFocus Research 02-14-2024