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Saizeriya Co (TSE:7581) Degree of Operating Leverage : 0.56 (As of Feb. 2025)


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What is Saizeriya Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Saizeriya Co's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 0.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSE:7581's Degree of Operating Leverage is ranked better than
57.65% of 340 companies
in the Restaurants industry
Industry Median: 1.125 vs TSE:7581: 0.56

Saizeriya Co Degree of Operating Leverage Historical Data

The historical data trend for Saizeriya 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.

Saizeriya Co Degree of Operating Leverage Chart

Saizeriya Co Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.24 661.04 14.39 -0.66 4.29

Saizeriya Co Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 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 16.26 14.08 4.29 2.80 0.56

Competitive Comparison of Saizeriya Co's Degree of Operating Leverage

For the Restaurants subindustry, Saizeriya 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.


Saizeriya Co's Degree of Operating Leverage Distribution in the Restaurants Industry

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

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


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Saizeriya Co Degree of Operating Leverage Calculation

Saizeriya Co'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
=( 12159 (Feb. 2025) / 12974 (Feb. 2024) - 1 )/( 181183 (Feb. 2025) / 204008 (Feb. 2024) - 1 )
=-0.0628/-0.1119
=0.56***

* 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.


Saizeriya Co  (TSE:7581) 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.


Saizeriya Co Degree of Operating Leverage Related Terms

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Saizeriya Co Business Description

Traded in Other Exchanges
N/A
Address
2-5 Asahi, Yoshikawa City, JPN, 3420008
Saizeriya Co Ltd operates more than 1,000 casual Italian-style restaurants in Japan and close to another 300 of those restaurants in other Southeast Asian countries, particularly China. Saizeriya has a vertically integrated manufacturing and sales system that covers all stages from raw material purchasing and processing to restaurant service. Its business includes farms and factories in Japan, Australia, and Italy to grow vegetables and process meat and dairy. More than three fourths of the company's sales come from restaurants in Japan.

Saizeriya Co Headlines

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