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QRTEA (Qurate Retail) Degree of Operating Leverage : 11.44 (As of Jun. 2024)


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What is Qurate Retail Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Qurate Retail's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 11.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

QRTEA's Degree of Operating Leverage is ranked worse than
83.01% of 1089 companies
in the Retail - Cyclical industry
Industry Median: 1.29 vs QRTEA: 11.44

Qurate Retail Degree of Operating Leverage Historical Data

The historical data trend for Qurate Retail'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.

Qurate Retail Degree of Operating Leverage Chart

Qurate Retail Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.50 -128.83 25.79 19.38 13.00

Qurate Retail Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 27.70 12.74 13.00 12.01 11.44

Competitive Comparison of Qurate Retail's Degree of Operating Leverage

For the Internet Retail subindustry, Qurate Retail'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.


Qurate Retail's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Qurate Retail's Degree of Operating Leverage distribution charts can be found below:

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



Qurate Retail Degree of Operating Leverage Calculation

Qurate Retail's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 364 (Jun. 2024) / -2033 (Jun. 2023) - 1 )/( 10371 (Jun. 2024) / 11563 (Jun. 2023) - 1 )
=-1.179/-0.1031
=11.44***

* 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.


Qurate Retail  (NAS:QRTEA) 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.


Qurate Retail Degree of Operating Leverage Related Terms

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


Qurate Retail Business Description

Address
12300 Liberty Boulevard, Englewood, CO, USA, 80112
Qurate Retail Inc, through its subsidiaries, is engaged in the video and online commerce industries. Its segments include QxH, which includes QVC U.S. and HSN market and sell a wide variety of consumer products in the United States, using their televised shopping programs and via the Internet through their websites and mobile applications; QVC International segment markets and sells a wide variety of consumer products in several foreign countries, using its televised shopping programs and via the Internet through its international websites and mobile applications; and Zulily markets and sells a wide variety of consumer products in the United States and several foreign countries. Geographically, the company operates in U.S, which generates key revenue, Japan, Germany and other regions.
Executives
Renee L Wilm officer: Chief Legal Officer 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
David Rawlinson officer: President/CEO-Elect C/O NIELSEN HOLDINGS PLC, 85 BROAD ST, NEW YORK NY 10004
Brian J Wendling officer: CAO/PFO 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
Albert E Rosenthaler officer: Senior Vice President 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Michael A George director
John C Malone director, 10 percent owner, officer: Chairman of the Board 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Andrea L Wong director 12300 LIBERTY BLVD., ENGLEWOOD CO 80112
David E Rapley director 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Gregory B Maffei director, officer: Chief Executive Officer 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Mark C Vadon director 705 FIFTH AVE S STE 900, SEATTLE WA 98104
Fiona P Dias director
Gilchrist Malcolm Ian Grant director 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Richard N Baer officer: SVP, General Counsel
Richard N Barton director C/O IAC, 152 WEST 57TH STREET, NEW YORK NY 10019
Mark D Carleton officer: Chief Financial Officer 12300 LIBERTY BLVD., ENGLEWOOD CO 80112