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SGMD (Sugarmade) Degree of Operating Leverage : 0.00 (As of Jun. 2023)


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What is Sugarmade Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sugarmade's Degree of Operating Leverage for the quarter that ended in Jun. 2023 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SGMD's Degree of Operating Leverage is not ranked *
in the Forest Products industry.
Industry Median: 1.16
* Ranked among companies with meaningful Degree of Operating Leverage only.

Sugarmade Degree of Operating Leverage Historical Data

The historical data trend for Sugarmade'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.

Sugarmade Degree of Operating Leverage Chart

Sugarmade Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Degree of Operating Leverage
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Sugarmade Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Jun23
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Competitive Comparison of Sugarmade's Degree of Operating Leverage

For the Paper & Paper Products subindustry, Sugarmade'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.


Sugarmade's Degree of Operating Leverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Sugarmade's Degree of Operating Leverage distribution charts can be found below:

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


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Sugarmade Degree of Operating Leverage Calculation

Sugarmade's Degree of Operating Leverage for the quarter that ended in Jun. 2023 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 0.419 (Jun. 2023) / -9.56 (Jun. 2022) - 1 )/( 2.397 (Jun. 2023) / 4.716 (Jun. 2022) - 1 )
=-1.0438/-0.4917
=2.12***

* 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.


Sugarmade  (OTCPK:SGMD) 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.


Sugarmade Degree of Operating Leverage Related Terms

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


Sugarmade Business Description

Traded in Other Exchanges
N/A
Address
20529 East Walnut Drive North, Walnut, CA, USA, 91789
Sugarmade Inc is engaged in the marketing and distribution of environmentally friendly non-tree-based paper products. It offers products such as double poly paper cups for cold beverages; disposable, clear, plastic cold cups, paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, food containers, soup containers, plastic spoons, and many other similar products for this market sector. The company operates under through Carry Out Supplies Subsidiary brand. In addition, it is also involved in the manufacturing and distribution of products and technologies that support the legal cultivation and processing of cannabis and other agricultural products.
Executives
Khoi Dang director 17785 CENTER COURT DRIVE, SUITE 750, CERRITOS CA 90703
Chenlong Tan director, 10 percent owner, other: Investor 2399 BATEMAN AVE., IRWINDALE CA 91010
Allan James Huang 10 percent owner, other: INVESTOR 750 ROYAL OAKS DR., #108, MONROVIA CA 91016
Jimmy Chan director, 10 percent owner, officer: CEO and Director 167 N. SUNSET AVE., CITY OF INDUSTRY CA 91744
Er Wang director 949 S. HOPE ST., APT. 201, LOS ANGELES CA 90015
Waylon Huang director 1510 JELLICK AVE., ROWLAND HEIGHTS CA 91748
Kevin M Kearney director 2051 COFFEE LANE, SABASTOPOL CA 95472
Stephan Pinto director 3000 DANVILLE BLVD F421, ALAMO CA 94507
Edward Roffman director 2330 MARINSHIP WAY #300, SAUSALITO CA 94965
Sanford Salzberg director C/O SUGARMADE, INC., 2280 LINCOLN AVENUE, SUITE 200, SAN JOSE CA 95125
C James Jensen director C/O ASPEN GROUP, INC., 276 FIFTH AVENUE, SUITE 505, NEW YORK NY 10001
Leung Clifton Kuok Wai director, 10 percent owner C/O SUGARMADE, INC., 2280 LINCOLN AVE, #200, SAN JOSE CA 95125
Diversified Opportunities, Inc. 10 percent owner 750 ROYAL OAKS DR. STE. 108, MONROVIA CA 91016
Jonathan Shultz other: 10% owner until 5/9/2011 6440 LUSK BOULEVARD, SUITE 200, SAN DIEGO CA 92121
Scott Lantz director, 10 percent owner, officer: CEO C/O SUGARMADE, INC., 2280 LINCOLN AVE, #200, SAN JOSE CA 95125

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