SWYDF (Stornoway Diamond) Degree of Operating Leverage : 0.00 (As of Jun. 2019)

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What is Stornoway Diamond Degree of Operating Leverage?

Stornoway Diamond SWYDF Degree of Operating Leverage is 0.00 as of Jun. 2019.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Stornoway Diamond's Degree of Operating Leverage for the quarter that ended in Jun. 2019 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SWYDF's Degree of Operating Leverage is not ranked *
in the Metals & Mining industry.
Industry Median: 1.22
* Ranked among companies with meaningful Degree of Operating Leverage only.

Stornoway Diamond  (OTCPK:SWYDF) 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.


Stornoway Diamond Degree of Operating Leverage Related Terms


Stornoway Diamond Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Stornoway Diamond'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.

Stornoway Diamond Degree of Operating Leverage Chart

Stornoway Diamond Annual Data
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Stornoway Diamond Quarterly Data
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SWYDF vs DYNR, CTDT: Degree of Operating Leverage Comparison

For the Other Precious Metals & Mining subindustry, Stornoway Diamond'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.


Stornoway Diamond Degree of Operating Leverage vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Stornoway Diamond's Degree of Operating Leverage distribution charts can be found below:

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



Stornoway Diamond Degree of Operating Leverage Calculation

Stornoway Diamond's Degree of Operating Leverage for the quarter that ended in Jun. 2019 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -423.081 (Jun. 2019) / -148.609 (Jun. 2018) - 1 )/( 222.282 (Jun. 2019) / 170.774 (Jun. 2018) - 1 )
=1.8469/0.3016
=6.12***

* 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.

What does a Degree of Operating Leverage of 0.00 mean?
Stornoway Diamond (SWYDF) has a Degree of Operating Leverage of 0.00 as of Jun. 2019. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Stornoway Diamond and its competitors.
Is Stornoway Diamond's Degree of Operating Leverage too high?
Stornoway Diamond's current Degree of Operating Leverage is 0.00.
How does Stornoway Diamond's Degree of Operating Leverage compare to DYNR and CTDT?
Stornoway Diamond's Degree of Operating Leverage of 0.00 can be compared against companies in the Metals & Mining industry. The industry median Degree of Operating Leverage is 1.22. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Metals & Mining company?
The median Degree of Operating Leverage among Metals & Mining companies is 1.22, based on 743 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Stornoway Diamond and its competitors. For the Metals & Mining industry, the median Degree of Operating Leverage is 1.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stornoway Diamond's current Degree of Operating Leverage is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stornoway Diamond stock overvalued right now?
Stornoway Diamond (SWYDF) has a current Degree of Operating Leverage of 0.00. The current Degree of Operating Leverage is 0.00. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Stornoway Diamond (SWYDF), the current Degree of Operating Leverage is 0.00 as of Jun. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Stornoway Diamond Business Description

Address 1111 St. Charles Street West, Tour Ouest, Suite 400, Longueuil, QC, CAN, J4K 5G4
Stornoway Diamond Corp is a leading Canadian diamond exploration and producing company. Its principal business is the development of its flagship asset, the fully-owned Renard Mine, located in Quebec, Canada. The company intends to grow its business through the exploration and development of its mines. Stornoway also holds interests in a portfolio of exploration assets across Canada through owned properties and joint ventures. These properties and joint ventures include projects such as Adamantin, Qilalugaq and Pikoo.