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Altarea SCA (XPAR:ALTA) Degree of Operating Leverage : -58.37 (As of Dec. 2024)


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What is Altarea SCA Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Altarea SCA's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -58.37. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XPAR:ALTA's Degree of Operating Leverage is ranked better than
94.28% of 734 companies
in the REITs industry
Industry Median: 1.205 vs XPAR:ALTA: -58.37

Altarea SCA Degree of Operating Leverage Historical Data

The historical data trend for Altarea SCA'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.

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Altarea SCA Degree of Operating Leverage Chart

Altarea SCA 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 150.57 140.17 -75.46 19.38 -58.37

Altarea SCA Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 -75.46 7.26 19.38 42.56 -58.37

Competitive Comparison of Altarea SCA's Degree of Operating Leverage

For the REIT - Residential subindustry, Altarea SCA'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.


Altarea SCA's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Altarea SCA's Degree of Operating Leverage distribution charts can be found below:

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


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Altarea SCA Degree of Operating Leverage Calculation

Altarea SCA's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 171.2 (Dec. 2024) / -551.5 (Dec. 2023) - 1 )/( 2709.8 (Dec. 2024) / 2650.3 (Dec. 2023) - 1 )
=-1.3104/0.0225
=-58.37***

* 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.


Altarea SCA  (XPAR:ALTA) 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.


Altarea SCA Degree of Operating Leverage Related Terms

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Altarea SCA Business Description

Industry
Traded in Other Exchanges
Address
87 rue de Richelieu, Paris, FRA, 75008
Altarea SCA is a real estate investment trust predominantly engaged in the acquisition, development, and management of properties throughout Western and Southern Europe. The company's real estate portfolio is composed of residential, retail, office, and mixed-use spaces. Altarea derives the majority of its revenue from rental income related to the leasing of its real estate assets. Its operating segments are; Retail; Residential; Business property; New businesses; and Others. Maximum rental income is generated from the Retail segment which consists of shopping centers under management or development. Geographically, it generates maximum revenue from France and the rest from Italy, Spain, and other regions.

Altarea SCA Headlines

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