GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Vera Bradley Inc (NAS:VRA) » Definitions » Degree of Operating Leverage

VRA (Vera Bradley) Degree of Operating Leverage : 14.83 (As of Jan. 2025)


View and export this data going back to 2010. Start your Free Trial

What is Vera Bradley Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Vera Bradley's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 14.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VRA's Degree of Operating Leverage is ranked worse than
88.6% of 1009 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 0.99 vs VRA: 14.83

Vera Bradley Degree of Operating Leverage Historical Data

The historical data trend for Vera Bradley'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.

Vera Bradley Degree of Operating Leverage Chart

Vera Bradley Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.05 6.88 25.36 28.37 14.83

Vera Bradley Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 28.37 15.37 6.22 35.51 14.83

Competitive Comparison of Vera Bradley's Degree of Operating Leverage

For the Footwear & Accessories subindustry, Vera Bradley'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.


Vera Bradley's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vera Bradley's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Vera Bradley Degree of Operating Leverage Calculation

Vera Bradley's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -33.519 (Jan. 2025) / 15.871 (Jan. 2024) - 1 )/( 371.967 (Jan. 2025) / 470.786 (Jan. 2024) - 1 )
=-3.112/-0.2099
=14.83***

* 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.


Vera Bradley  (NAS:VRA) 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.


Vera Bradley Degree of Operating Leverage Related Terms

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


Vera Bradley Business Description

Traded in Other Exchanges
Address
12420 Stonebridge Road, Roanoke, IN, USA, 46783
Vera Bradley Inc designs women's handbags, travel items, and accessories. Each category comprises a substantial component of total sales, with the bags category comprising the majority of the company's sales are made directly to customers through Vera Bradley's retail stores and e-commerce sites. The company also has a substantial wholesale business selling to specialty retail and department stores. Almost all company sales are in the United States. Vera Bradley uses third-party manufacturers in Asia to produce its products, and the company distributes the products through its distribution center in Indiana. The Company has three reportable segments: Vera Bradley Direct, Vera Bradley Indirect, and Pura Vida. The majority of revenue is from the Vera Bradley Direct segment.
Executives
Mary Lou Kelley director 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Michael Schwindle officer: CHIEF FINANCIAL OFFICER 2400 WEST CENTRAL ROAD, HOFFMAN ESTATES IL 60192
Alison Hiatt officer: Chief Marketing Officer C/O VERA BRADLEY, INC., 12420 STONEBRIDGE ROAD, ROANOKE IN 46783
Jacqueline Ardrey director, officer: President and CEO C/O VERA BRADLEY, INC., 12420 STONEBRIDGE ROAD, ROANOKE IN 46783
Frances P Philip director ONE ALBION ROAD, LINCOLN RI 02865
Edward M Schmults director C/O VERA BRADLEY, INC., 2208 PRODUCTION ROAD, FORT WAYNE IN 46808
Robert Wallstrom director, officer: President & Chief Exec Officer 12 E. 49TH STREET, NEW YORK NY 10017
Daren Hull officer: Chief Customer Officer C/O VERA BRADLEY, INC., 12420 STONEBRIDGE ROAD, ROANOKE IN 46783
John Enwright officer: VP, Interim Chief Fin. Officer C/O VERA BRADLEY, INC., 12420 STONEBRIDGE RD., ROANOKE IN 46873
Mark C Dely officer: VP - Chief Legal Off. and Sec. 4300 NEW GETWELL RD, MEMPHIS TN 38118
P. Michael Miller director, 10 percent owner C/O VERA BRADLEY, INC., 2208 PRODUCTION ROAD, FORT WAYNE IN 46808
Patricia R. Miller director, 10 percent owner C/O VERA BRADLEY, INC., 2208 PRODUCTION ROAD, FORT WAYNE IN 46808
Nancy Twine director C/O VERA BRADLEY, INC., 12420 STONEBRIDGE ROAD, ROANOKE IN 46783
James Bradley Byrne 10 percent owner 12 CHURCHILL ROAD, MARBLEHEAD MA 01945
Byrne Thomas Farrell Ii 10 percent owner 13114 PERRY LAKE COURT, FORT WAYNE IN 46845