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OLPX (Olaplex Holdings) Degree of Operating Leverage : 7.17 (As of Mar. 2025)


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What is Olaplex Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Olaplex Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 7.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OLPX's Degree of Operating Leverage is ranked worse than
80.33% of 1093 companies
in the Retail - Cyclical industry
Industry Median: 1.28 vs OLPX: 7.17

Olaplex Holdings Degree of Operating Leverage Historical Data

The historical data trend for Olaplex Holdings'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.

Olaplex Holdings Degree of Operating Leverage Chart

Olaplex Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.47 2.61 0.21 1.76 4.60

Olaplex Holdings Quarterly Data
Dec19 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 2.00 2.35 2.98 4.60 7.17

Competitive Comparison of Olaplex Holdings's Degree of Operating Leverage

For the Specialty Retail subindustry, Olaplex Holdings'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.


Olaplex Holdings's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

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

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


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Olaplex Holdings Degree of Operating Leverage Calculation

Olaplex Holdings'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
=( 76.23 (Mar. 2025) / 120.368 (Mar. 2024) - 1 )/( 420.742 (Mar. 2025) / 443.419 (Mar. 2024) - 1 )
=-0.3667/-0.0511
=7.17***

* 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.


Olaplex Holdings  (NAS:OLPX) 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.


Olaplex Holdings Degree of Operating Leverage Related Terms

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Olaplex Holdings Business Description

Traded in Other Exchanges
N/A
Address
432 Park Avenue South, Third Floor, New York, NY, USA, 10016
Olaplex Holdings Inc is a science-enabled, technology-driven beauty company. It offers science-backed solutions that improve hair health. It identifies the majority of consumers' relevant haircare concerns in collaboration with the community of professional hairstylists and consumers and strives to address them through its proprietary technology and innovation capabilities. It offers products through an omnichannel platform that serves professional, specialty retail, and DTC channels. The company derives its revenue through the sale of its hair care products. The company generates the majority of revenue from Professional sales channels followed by Specialty Retail and then DTC. Geographically the company generates the majority of its revenue from the International market.
Executives
John P Bilbrey director
Kristi A Belhumeur officer: See Remarks 6312 S FIDDLERS GREEN CIRCLE, SUITE 200N, GREENWOOD VILLAGE CO 80111
Eric Tiziani officer: Chief Financial Officer 1187 COAST VILLAGE ROAD, SUITE 1-520, SANTA BARBARA CA 93108
Advent International Gp, Llc director, 10 percent owner 800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199
David M Mussafer director C/O ADVENT INTERNATIONAL CORP, 75 STATE ST 29TH FLOOR, BOSTON MA 02104
Tricia Glynn director C/O ADVENT INERNATIONAL CORPORATION, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199
Michael James White director C/O ADVENT INTERNATIONAL, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199
Morfitt Martha A M director P.O. BOX 1441, MINNEAPOLIS MN 55440-1441
Advent International Corp/ma director, 10 percent owner 800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199
Advent Partners Gpe Ix-b Cayman Limited Partnership director, 10 percent owner C/O ADVENT INTERNATIONAL CORPORATION, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199-8069
Emily White director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Christine Dagousset director 9 W 57TH STREET, C/O CHANEL, NEW YORK NY 10019
Tiffany Walden director, officer: See Remarks 1187 COAST VILLAGE ROAD, SUITE 1-520, SANTA BARBARA CA 93108
Paula Zusi director 481 MYRTLE AVENUE, OCEANPORT NJ 07757
Janet Gurwitch director 1284 NORTH TELEGRPAH, MONROE MI 48162