GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Generation Pass Co Ltd (TSE:3195) » Definitions » Degree of Operating Leverage

Generation Pass Co (TSE:3195) Degree of Operating Leverage : -28.03 (As of Oct. 2024)


View and export this data going back to 2014. Start your Free Trial

What is Generation Pass Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Generation Pass Co's Degree of Operating Leverage for the quarter that ended in Oct. 2024 was -28.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Generation Pass Co's Degree of Operating Leverage or its related term are showing as below:

TSE:3195's Degree of Operating Leverage is ranked better than
94.05% of 1093 companies
in the Retail - Cyclical industry
Industry Median: 1.35 vs TSE:3195: -28.03

Generation Pass Co Degree of Operating Leverage Historical Data

The historical data trend for Generation Pass Co'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.

Generation Pass Co Degree of Operating Leverage Chart

Generation Pass Co Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.90 -22.10 -91.87 15.87 -28.03

Generation Pass Co Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Oct24
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 28.65 15.87 8.83 12.04 -28.03

Competitive Comparison of Generation Pass Co's Degree of Operating Leverage

For the Internet Retail subindustry, Generation Pass Co'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.


Generation Pass Co's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Generation Pass Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Generation Pass Co's Degree of Operating Leverage falls into.


;
;

Generation Pass Co Degree of Operating Leverage Calculation

Generation Pass Co's Degree of Operating Leverage for the quarter that ended in Oct. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -71.308 (Oct. 2024) / 70.955 (Oct. 2023) - 1 )/( 16235.491 (Oct. 2024) / 15151.862 (Oct. 2023) - 1 )
=-2.005/0.0715
=-28.03***

* 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.


Generation Pass Co  (TSE:3195) 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.


Generation Pass Co Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Generation Pass Co's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Generation Pass Co Business Description

Traded in Other Exchanges
N/A
Address
Nishishinjuku Parkwest Bldg. 5th Floor, 6-12-1, Nishishinjuku, Shinjuku-ku, Tokyo, JPN, 160-0023
Generation Pass Co Ltd provides e-commerce marketing and support services in Japan. It offers internet shop management, new products net marketing, new store openings, and sales and operational support of the internet shopping.

Generation Pass Co Headlines

No Headlines