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SIG (Signet Jewelers) Degree of Operating Leverage : 2.90 (As of Apr. 2025)


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What is Signet Jewelers Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Signet Jewelers's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 2.90. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SIG's Degree of Operating Leverage is ranked worse than
66.18% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.305 vs SIG: 2.90

Signet Jewelers Degree of Operating Leverage Historical Data

The historical data trend for Signet Jewelers'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.

Signet Jewelers Degree of Operating Leverage Chart

Signet Jewelers Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 61.85 12.42 -33.70 -412.31 -41.94

Signet Jewelers Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 -6.67 -11.02 -18.15 3.05 2.90

Competitive Comparison of Signet Jewelers's Degree of Operating Leverage

For the Luxury Goods subindustry, Signet Jewelers'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.


Signet Jewelers's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

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

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


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Signet Jewelers Degree of Operating Leverage Calculation

Signet Jewelers's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 516.5 (Apr. 2025) / 584 (Apr. 2024) - 1 )/( 6734.6 (Apr. 2025) / 7013.9 (Apr. 2024) - 1 )
=-0.1156/-0.0398
=2.90***

* 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.


Signet Jewelers  (NYSE:SIG) 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.


Signet Jewelers Degree of Operating Leverage Related Terms

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


Signet Jewelers Business Description

Traded in Other Exchanges
Address
2 Church Street, Clarendon House, Hamilton, BMU, HM11
Signet Jewelers Ltd is a retailer of diamond jewelry. Its merchandise mix includes bridal, fashion, watches, and others. The bridal category includes engagement, wedding and anniversary purchases. Its segments are the North America segment, the International segment, and the Other segment. The North America segment contributes to the majority of the revenue. The North America segment generates revenue from Mall and Off-Mall & Outlet.
Executives
Andre Branch director 375 GHENT RD, AKRON OH 44333
Helen Mccluskey director 2211 REDDING ROAD, FAIRFIELD CT 06430
Eugenia Ulasewicz director CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Vincent Ciccolini officer: Chief Accounting Officer 375 GHENT RD, AKRON OH 44333
Joan M Hilson officer: Chief Financial Officer 150 THORN HILL DRIVE, WARRENDALE PA 15086-7528
Oded Edelman officer: President of JamesAllen.com CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Mary Elizabeth Finn officer: Chief People Officer 770 BROADWAY, NEW YORK NY 10003
Virginia Drosos director, officer: Chief Executive Officer CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Jamie Singleton officer: See Remarks 9797 ROMBAUER, DALLAS TX 75019
Rebecca Wooters officer: Chief Digital Officer 375 GHENT RD, AKRON OH 44333
Stash Ptak officer: * See Remarks 375 GHENT RD, AKRON OH 44333
H. Todd Stitzer director CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
William Brace officer: See Remarks 375 GHENT RD, AKRON OH 44333
Howard A Melnick officer: Chief Information Officer C/O SIGNET JEWELERS LIMITED, 375 GHENT ROAD, AKRON OH 44333
Stephen E. Lovejoy officer: Chief Supply Chain Officer C/O SIGNET JEWELERS LIMITED, 375 GHENT ROAD, AKRON OH 44333