TOYRF (Toys R Us ANZ) Degree of Operating Leverage : 0.00 (As of Jan. 2018)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Toys R Us ANZ Degree of Operating Leverage?

Toys R Us ANZ TOYRF +400.00% Degree of Operating Leverage is 0.00 as of Jan. 2018.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Toys R Us ANZ's Degree of Operating Leverage for the quarter that ended in Jan. 2018 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Toys R Us ANZ's Degree of Operating Leverage or its related term are showing as below:

TOYRF's Degree of Operating Leverage is not ranked *
in the Retail - Cyclical industry.
Industry Median: 1.22
* Ranked among companies with meaningful Degree of Operating Leverage only.

Toys R Us ANZ  (OTCPK:TOYRF) 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.


Toys R Us ANZ Degree of Operating Leverage Related Terms


Toys R Us ANZ Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Toys R Us ANZ'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.

Toys R Us ANZ Degree of Operating Leverage Chart

Toys R Us ANZ Annual Data
Trend Dec07 Dec08 Dec09 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.73 3.91 -8.79 0.96 -1.14

Toys R Us ANZ Semi-Annual Data
Dec07 Jun08 Dec08 Jun09 Dec09 Jan11 Jul11 Jan12 Jul12 Jan13 Jul13 Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18
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 4.21 0.96 -6.53 -1.14 4.64

TOYRF vs BWMG, AS, HAS: Degree of Operating Leverage Comparison

For the Specialty Retail subindustry, Toys R Us ANZ'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.


Toys R Us ANZ Degree of Operating Leverage vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Toys R Us ANZ's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Toys R Us ANZ's Degree of Operating Leverage falls into.



Toys R Us ANZ Degree of Operating Leverage Calculation

Toys R Us ANZ's Degree of Operating Leverage for the quarter that ended in Jan. 2018 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 9.972 (Jan. 2018) / -12.335 (Jan. 2017) - 1 )/( 33.745 (Jan. 2018) / 55.304 (Jan. 2017) - 1 )
=-1.8084/-0.3898
=4.64***

* 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?
Toys R Us ANZ (TOYRF) has a Degree of Operating Leverage of 0.00 as of Jan. 2018. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Toys R Us ANZ and its competitors.
Is Toys R Us ANZ's Degree of Operating Leverage too high?
Toys R Us ANZ's current Degree of Operating Leverage is 0.00.
How does Toys R Us ANZ's Degree of Operating Leverage compare to BWMG and AS?
Toys R Us ANZ's Degree of Operating Leverage of 0.00 can be compared against companies in the Retail - Cyclical 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 Retail - Cyclical company?
The median Degree of Operating Leverage among Retail - Cyclical companies is 1.22, based on 1,103 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 Toys R Us ANZ and its competitors. For the Retail - Cyclical 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. Toys R Us ANZ'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 Toys R Us ANZ stock overvalued right now?
Toys R Us ANZ (TOYRF) 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 Toys R Us ANZ (TOYRF), the current Degree of Operating Leverage is 0.00 as of Jan. 2018. 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.

Toys R Us ANZ Business Description

Address 45-49 McNaughton Road, Unit 3, Clayton, VIC, AUS, 3168
Toys R Us ANZ Ltd is a brand builder and distributor of toys, sporting, and lifestyle products. The company is organised into two operating segments based on differences in products sold: Business to Consumer (B2C) and Corporate. The Business to Consumer segment is involved in sale of consumer products (toys, hobby and baby goods) to the consumers and Corporate relates to the corporate running costs of the Group. The company generates majority of its revenue from its B2C segment. Geographically the company operates in Australia.