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REMYY (Remy Cointreau) Degree of Operating Leverage : 0.18 (As of Sep. 2024)


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What is Remy Cointreau Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Remy Cointreau's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 0.18. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

REMYY's Degree of Operating Leverage is ranked better than
67.96% of 206 companies
in the Beverages - Alcoholic industry
Industry Median: 1.31 vs REMYY: 0.18

Remy Cointreau Degree of Operating Leverage Historical Data

The historical data trend for Remy Cointreau'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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Remy Cointreau Degree of Operating Leverage Chart

Remy Cointreau Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.17 -20.66 1.20 1.81 1.41

Remy Cointreau Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 1.31 1.81 2.67 1.41 0.18

Competitive Comparison of Remy Cointreau's Degree of Operating Leverage

For the Beverages - Wineries & Distilleries subindustry, Remy Cointreau'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.


Remy Cointreau's Degree of Operating Leverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Remy Cointreau's Degree of Operating Leverage distribution charts can be found below:

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



Remy Cointreau Degree of Operating Leverage Calculation

Remy Cointreau's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 289.155 (Sep. 2024) / 290.011 (Sep. 2023) - 1 )/( 1198.212 (Sep. 2024) / 1409.059 (Sep. 2023) - 1 )
=-0.003/-0.1496
=0.02***

* 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.


Remy Cointreau  (OTCPK:REMYY) 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.


Remy Cointreau Degree of Operating Leverage Related Terms

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Remy Cointreau Business Description

Address
Rue Joseph Pataa, Ancienne rue de la Champagne, Cognac, FRA, 16100
Remy Cointreau is the world's second-largest distiller of cognac by volume, with a 15.8% global volume share in 2022, according to Euromonitor. Cognac represented 72% of Remy's sales and 90% of EBIT in the same year. The remainder of Remy's portfolio is made up of much smaller group-owned brands, including Cointreau orange liqueur, Metaxa Greek spirit, Mount Gay rum, Bruichladdich single malt scotch, The Botanist gin, Hautes Glaces French whiskey, and Westland American whiskey. The company also distributes third-party brands and, in 2023, entered the fragrance business. Remy is controlled by the Andromede family, which owns 41% equity interest and consolidates the business in the Andromede Group. The Cointreau family owns a further 27%, and 41% of the equity is free float.

Remy Cointreau Headlines

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