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XELB (Xcel Brands) Degree of Operating Leverage : 0.41 (As of Jun. 2024)


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What is Xcel Brands Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Xcel Brands's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 0.41. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XELB's Degree of Operating Leverage is ranked better than
59.3% of 1022 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.245 vs XELB: 0.41

Xcel Brands Degree of Operating Leverage Historical Data

The historical data trend for Xcel Brands'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.

Xcel Brands Degree of Operating Leverage Chart

Xcel Brands 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 -9.70 -16.49 -0.49 2.11 -11.45

Xcel Brands 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 78.67 -14.77 -11.45 -4.62 0.41

Competitive Comparison of Xcel Brands's Degree of Operating Leverage

For the Apparel Manufacturing subindustry, Xcel Brands'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.


Xcel Brands's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

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

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



Xcel Brands Degree of Operating Leverage Calculation

Xcel Brands'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
=( -18.967 (Jun. 2024) / -24.301 (Jun. 2023) - 1 )/( 10.062 (Jun. 2024) / 21.398 (Jun. 2023) - 1 )
=-0.2195/-0.5298
=0.41***

* 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.


Xcel Brands  (NAS:XELB) 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.


Xcel Brands Degree of Operating Leverage Related Terms

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


Xcel Brands Business Description

Traded in Other Exchanges
N/A
Address
550 Seventh Avenue, 11th Floor, New York, NY, USA, 10018
Xcel Brands Inc is a media and brand management company. It is engaged in design, merchandising and planning, sourcing and production, licensing, marketing, and brand development. The company offers branded apparel, footwear, accessories, jewelry, home goods, and other consumer products. Its brand portfolio consists of the Isaac Mizrahi, Judith Ripka, H Halston, C Wonder, and the Highline Collective brands. The company licenses its brands to third parties, provides certain design, production, and marketing services, and generates licensing, design, and service fee revenues through contractual arrangements and other agreements.
Executives
Seth Burroughs officer: See Remarks C/O XCEL BRANDS,INC., 475 10TH AVENUE, 4TH FLOOR, NEW YORK NY 10018
D Loren Robert W director, 10 percent owner, officer: CEO and Chairman 475 10TH AVENUE, 4TH FLOOR, NEW YORK NY 10018
Mark Disanto director, 10 percent owner C/O XCEL BRANDS, INC., 475 10TH AVENUE, 4TH FLOOR, NEW YORK NY 10018
James Haran officer: Chief Financial Officer 475 10TH AVENUE, 4TH FLOOR, NEW YORK NY 10018
Michael Francis director 6501 LEGACY DRIVE, PLANO TX 75024
James D Fielding director C/O XCEL BRANDS, INC., 1333 BROADWAY, 10TH FLOOR, NEW YORK NY 10018
Deborah Weinswig director C/O XCEL BRANDS, INC., 1333 BROADWAY, 10TH FLOOR, NEW YORK NY 10018
Howard M Liebman director C/O XCEL BRANDS, INC., 475 10TH AVENUE, 4TH FLOOR, NEW YORK NY 10018
Isaac Mizrahi 10 percent owner C/O XCEL BRANDS, INC., 475 10TH AVENUE, 4TH FLOOR, NEW YORK NY 10018
Hilco Trading, Llc 10 percent owner 5 REVERE DRIVE, SUITE 206, NORTHBROOK IL 60062
Jeffrey Bruce Hecktman 10 percent owner 5 REVERE DRIVE, SUITE 206, NORTHBROOK IL 60062
Edward Iii Jones director C/O XCEL BRANDS, INC., 475 10TH AVENUE, 4TH FLOOR, NEW YORK NY 10018
Richard Kirschenbaum director C/O XCEL BRANDS, INC., 1333 BROADWAY, 10TH FLOOR, NEW YORK NY 10018
Ben Malka director C/O XCEL BRANDS, INC., 475 10TH AVENUE, 4TH FLOOR, NEW YORK NY 10018
Buckingham Capital Management Inc 10 percent owner 485 LEXINGTON AVENUE, 3RD FL, NEW YORK NY 10017