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Leef Brands (STU:H3G) Degree of Operating Leverage : 24.12 (As of Sep. 2024)


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What is Leef Brands Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Leef Brands's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 24.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:H3G's Degree of Operating Leverage is ranked worse than
92.7% of 945 companies
in the Drug Manufacturers industry
Industry Median: 0.93 vs STU:H3G: 24.12

Leef Brands Degree of Operating Leverage Historical Data

The historical data trend for Leef Brands'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.

Leef Brands Degree of Operating Leverage Chart

Leef Brands Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul19 Jul20 Jul21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.01 -0.48 1.60 1.32

Leef Brands Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 33.01 1.32 -49.77 3.40 24.12

Competitive Comparison of Leef Brands's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Leef Brands'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.


Leef Brands's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Leef Brands's Degree of Operating Leverage distribution charts can be found below:

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



Leef Brands Degree of Operating Leverage Calculation

Leef Brands'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
=( -17.666 (Sep. 2024) / -35.488 (Sep. 2023) - 1 )/( 26.116 (Sep. 2024) / 27.202 (Sep. 2023) - 1 )
=-0.5022/-0.0399
=12.58***

* 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.


Leef Brands  (STU:H3G) 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.


Leef Brands Degree of Operating Leverage Related Terms

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Leef Brands Business Description

Traded in Other Exchanges
Address
1055 West Georgia Street, Suite 1500, Vancouver, BC, CAN, V6E 4N7
Leef Brands Inc is a manufacturer of cannabis-branded products manufacturer based in California. It offers products under brand names like Real Deal Resin, Ganja Gold, Heady, and Leef. Geographically, it derives a majority of its revenue from the United States. It has one operation of the Company located in Canada and the United States. The Company has one reportable business segment in the cannabis sector. It generates the majority of its revenue from the USA.

Leef Brands Headlines

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