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Sanderson Design Group (STU:5H7) Degree of Operating Leverage : 6.73 (As of Jul. 2024)


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What is Sanderson Design Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sanderson Design Group's Degree of Operating Leverage for the quarter that ended in Jul. 2024 was 6.73. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:5H7's Degree of Operating Leverage is ranked worse than
76.25% of 421 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.34 vs STU:5H7: 6.73

Sanderson Design Group Degree of Operating Leverage Historical Data

The historical data trend for Sanderson Design 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.

Sanderson Design Group Degree of Operating Leverage Chart

Sanderson Design Group 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 10.39 -0.43 5.17 -27.84 1.54

Sanderson Design Group Semi-Annual Data
Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24
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 4.12 -27.84 -4.34 1.54 6.73

Competitive Comparison of Sanderson Design Group's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Sanderson Design 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.


Sanderson Design Group's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Sanderson Design Group's Degree of Operating Leverage distribution charts can be found below:

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



Sanderson Design Group Degree of Operating Leverage Calculation

Sanderson Design Group's Degree of Operating Leverage for the quarter that ended in Jul. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 6.92 (Jul. 2024) / 13.635 (Jul. 2023) - 1 )/( 120.574 (Jul. 2024) / 127.44 (Jul. 2023) - 1 )
=-0.4925/-0.0539
=9.14***

* 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.


Sanderson Design Group  (STU:5H7) 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.


Sanderson Design Group Degree of Operating Leverage Related Terms

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Sanderson Design Group Business Description

Traded in Other Exchanges
Address
Sandersons Lane, Voysey House, London, GBR, W4 4DS
Sanderson Design Group PLC is a luxury interior furnishings company that designs, manufactures, and markets wallpapers and fabrics together with a wide range of ancillary interior products. Its reportable segments are Brands, Licensing, and Manufacturing. Brands division comprising the design, marketing, sales, and distribution of Morris & Co., Sanderson, Zoffany, Clarke & Clarke, Harlequin, and Scion brands. The Licensing segment represents the licensing activities of various brands, and the Manufacturing segment represents the wallcovering and printed fabric manufacturing businesses operated by Anstey and Standfast & Barracks respectively. The company generates a majority of its revenue from the Brands segment. Geographically, it derives key revenue from the United Kingdom.

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