GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » TWC Enterprises Ltd (TSX:TWC) » Definitions » Degree of Operating Leverage

TWC Enterprises (TSX:TWC) Degree of Operating Leverage : -1.81 (As of Mar. 2025)


View and export this data going back to 1997. Start your Free Trial

What is TWC Enterprises Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. TWC Enterprises's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.81. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSX:TWC's Degree of Operating Leverage is ranked better than
74.63% of 808 companies
in the Travel & Leisure industry
Industry Median: 1.155 vs TSX:TWC: -1.81

TWC Enterprises Degree of Operating Leverage Historical Data

The historical data trend for TWC Enterprises'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.

TWC Enterprises Degree of Operating Leverage Chart

TWC Enterprises Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.94 -55.70 -9.05 -0.51 9.35

TWC Enterprises Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 0.82 0.30 1.44 9.35 -1.81

Competitive Comparison of TWC Enterprises's Degree of Operating Leverage

For the Leisure subindustry, TWC Enterprises'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.


TWC Enterprises's Degree of Operating Leverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, TWC Enterprises's Degree of Operating Leverage distribution charts can be found below:

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


;
;

TWC Enterprises Degree of Operating Leverage Calculation

TWC Enterprises's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 58.457 (Mar. 2025) / 44.261 (Mar. 2024) - 1 )/( 221.622 (Mar. 2025) / 269.288 (Mar. 2024) - 1 )
=0.3207/-0.177
=-1.81***

* 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.


TWC Enterprises  (TSX:TWC) 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.


TWC Enterprises Degree of Operating Leverage Related Terms

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


TWC Enterprises Business Description

Traded in Other Exchanges
Address
15675 Dufferin Street, King City, ON, CAN, L7B 1K5
TWC Enterprises Ltd is a leisure services provider in Canada. Its core business is Golf club operations under the brand name ClubLink One Membership More Golf. The company's geographical segment includes Canadian golf club operations and United States golf club operations. It generates maximum revenue from the Canadian golf club operation segment.
Executives
Kuldip Rai Sahi 10% Security Holder, Director, Director or Senior Officer of 10% Security Holder, Senior Officer
Andrew Tamlin Senior Officer
Johannes Lokker Director

TWC Enterprises Headlines

From GuruFocus

Hedge Fund Titan Ken Griffin (Citadel) - Unfiltered 25 Minute Interview

By Canadian Value Canadian Value 08-04-2014

Triple Play: The Paid TV Industry

By Vanina Egea Vanina Egea 09-20-2013

52-Week High Companies: TWC, GR, NGG, TDC, DG

By GuruFocus GuruFocus 03-12-2012

TIME WARNER CABLE INC (TWC) Chairman & CEO Glenn Britt sells 47,507 Shares

By GuruFocus Research GuruFocus Editor 03-17-2011

Pioneer Investments Purchases Time Warner Cable, Kohl's in Q4

By Sheila Dang Sheila Dang 02-10-2015

HOTCHKIS & WILEY Sells Stake in Time Warner Cable

By David Goodloe David Goodloe 09-08-2015

Should You Be Long Time Warner Cable?

By Fede Zaldua Fede Zaldua 11-27-2013