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Premier Farnell (STU:PML) Degree of Operating Leverage : 0.00 (As of Jul. 2015)


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What is Premier Farnell Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Premier Farnell's Degree of Operating Leverage for the quarter that ended in Jul. 2015 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:PML's Degree of Operating Leverage is not ranked *
in the Hardware industry.
Industry Median: 1
* Ranked among companies with meaningful Degree of Operating Leverage only.

Premier Farnell Degree of Operating Leverage Historical Data

The historical data trend for Premier Farnell'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.

Premier Farnell Degree of Operating Leverage Chart

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Competitive Comparison of Premier Farnell's Degree of Operating Leverage

For the Electronics & Computer Distribution subindustry, Premier Farnell'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.


Premier Farnell's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Premier Farnell's Degree of Operating Leverage distribution charts can be found below:

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


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Premier Farnell Degree of Operating Leverage Calculation

Premier Farnell's Degree of Operating Leverage for the quarter that ended in Jul. 2015 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 101.444 (Jul. 2015) / 102.523 (Jul. 2014) - 1 )/( 1332.089 (Jul. 2015) / 1172.535 (Jul. 2014) - 1 )
=-0.0105/0.1361
=-0.08***

* 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.


Premier Farnell  (STU:PML) 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.


Premier Farnell Degree of Operating Leverage Related Terms

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Premier Farnell Business Description

Industry
Traded in Other Exchanges
N/A
Address
Premier Farnell PLC was incorporated on April 6, 1966 and is domiciled in the UK. The Company's business activities are providing electronic, electrical and industrial products and services to the design, maintenance and repair sectors. The Company is organized into two reportable business segments: the Marketing and Distribution Division, comprising the Americas, Europe and Asia Pacific and Other Distribution Businesses, and the Industrial Products Division. The Marketing and Distribution Division (MDD) supports customers around the world who range from engineers to purchasing professionals and electronics enthusiasts. MDD includes both the element14 businesses in Americas, Europe and Asia Pacific as well as CPC and MCM. The Industrial Products Division comprises Akron Brass, an innovator in life safety and the world leader in the manufacture of high-performance components for fire-fighting.

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