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4Front Ventures (XCNQ:FFNT) Degree of Operating Leverage : 1.84 (As of Sep. 2024)


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What is 4Front Ventures Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. 4Front Ventures's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 1.84. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for 4Front Ventures's Degree of Operating Leverage or its related term are showing as below:

XCNQ:FFNT's Degree of Operating Leverage is ranked worse than
63.03% of 944 companies
in the Drug Manufacturers industry
Industry Median: 0.87 vs XCNQ:FFNT: 1.84

4Front Ventures Degree of Operating Leverage Historical Data

The historical data trend for 4Front Ventures'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.

4Front Ventures Degree of Operating Leverage Chart

4Front Ventures Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.15 -0.41 -0.92 -5.07 -41.88

4Front Ventures Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -278.47 -41.88 -26.07 -20.03 1.84

Competitive Comparison of 4Front Ventures's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, 4Front Ventures'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.


4Front Ventures's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, 4Front Ventures's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where 4Front Ventures's Degree of Operating Leverage falls into.


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4Front Ventures Degree of Operating Leverage Calculation

4Front Ventures's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -24.979 (Sep. 2024) / -50.175 (Sep. 2023) - 1 )/( 102.425 (Sep. 2024) / 141.002 (Sep. 2023) - 1 )
=-0.5022/-0.2736
=1.84***

* 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.


4Front Ventures  (XCNQ:FFNT) 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.


4Front Ventures Degree of Operating Leverage Related Terms

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4Front Ventures Business Description

Traded in Other Exchanges
Address
7010 E. Chauncey Lane, Suite 235, Phoenix, AZ, USA, 85054
4Front Ventures Corp is a Canadian-based company. It is engaged in the cultivation, processing, extracting, manufacturing, and distribution of cannabis products. It operates in two segments: THC Cannabis and CBD Wellness. The THC Cannabis segment engages in the production and cultivation of THC cannabis, manufacturing and distribution of cannabis products to owned dispensaries and third-party retail customers. The CBD Wellness segment encompasses the production and sale of CBD products to third-party customers.

4Front Ventures Headlines

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