GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » SLD Entertainment Inc (TSE:3223) » Definitions » Degree of Operating Leverage

SLD Entertainment (TSE:3223) Degree of Operating Leverage : -1.07 (As of Feb. 2025)


View and export this data going back to 2015. Start your Free Trial

What is SLD Entertainment Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. SLD Entertainment's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was -1.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSE:3223's Degree of Operating Leverage is ranked better than
71.8% of 344 companies
in the Restaurants industry
Industry Median: 1.26 vs TSE:3223: -1.07

SLD Entertainment Degree of Operating Leverage Historical Data

The historical data trend for SLD Entertainment'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.

SLD Entertainment Degree of Operating Leverage Chart

SLD Entertainment Annual Data
Trend Mar16 Mar17 Mar18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 107.40 -20.67 -27.88 -9.69 -1.07

SLD Entertainment Quarterly Data
Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Feb25
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 -5.75 -9.69 -22.14 -82.41 -1.07

Competitive Comparison of SLD Entertainment's Degree of Operating Leverage

For the Restaurants subindustry, SLD Entertainment'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.


SLD Entertainment's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, SLD Entertainment's Degree of Operating Leverage distribution charts can be found below:

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


;
;

SLD Entertainment Degree of Operating Leverage Calculation

SLD Entertainment's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 126.548 (Feb. 2025) / 129.468 (Feb. 2024) - 1 )/( 3661.043 (Feb. 2025) / 3585.627 (Feb. 2024) - 1 )
=-0.0226/0.021
=-1.07***

* 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.


SLD Entertainment  (TSE:3223) 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.


SLD Entertainment Degree of Operating Leverage Related Terms

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


SLD Entertainment Business Description

Traded in Other Exchanges
N/A
Address
1-20-2 Shinoni-ku, Daiichi Shimizu Building (Reception: 2nd Floor), Tokyo, JPN, 150-0041
SLD Entertainment Inc operates chain of restaurants. It operates a dining cafe under the kawara CAFE & DINING brand name; and food and beverage outlets under the LOOP brand name. Geographically, the activities are carried out through the region of Japan.

SLD Entertainment Headlines

No Headlines