GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Amcor PLC (OTCPK:AMCCF) » Definitions » Degree of Operating Leverage

Amcor (AMCCF) Degree of Operating Leverage : -6.78 (As of Mar. 2025)


View and export this data going back to 2009. Start your Free Trial

What is Amcor Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Amcor's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -6.78. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AMCCF's Degree of Operating Leverage is ranked better than
84.86% of 383 companies
in the Packaging & Containers industry
Industry Median: 1.38 vs AMCCF: -6.78

Amcor Degree of Operating Leverage Historical Data

The historical data trend for Amcor'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.

Amcor Degree of Operating Leverage Chart

Amcor Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.86 9.65 -0.41 20.32 2.59

Amcor Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 2.74 2.59 1.92 -4.92 -6.78

Competitive Comparison of Amcor's Degree of Operating Leverage

For the Packaging & Containers subindustry, Amcor'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.


Amcor's Degree of Operating Leverage Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Amcor's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Amcor Degree of Operating Leverage Calculation

Amcor's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1352 (Mar. 2025) / 1170 (Mar. 2024) - 1 )/( 13462 (Mar. 2025) / 13778 (Mar. 2024) - 1 )
=0.1556/-0.0229
=-6.78***

* 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.


Amcor  (OTCPK:AMCCF) 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.


Amcor Degree of Operating Leverage Related Terms

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


Amcor Business Description

Address
83 Tower Road North, Warmley, Bristol, GBR, BS30 8XP
Amcor is a global producer of plastic packaging primarily for the fast-moving consumer goods industry. About 90% of earnings are exposed to the flexible packaging business. This is soft disposable plastic for a variety of food, drink, healthcare, and hygiene products. The remainder of earnings are from the Latin and North American rigids business, which is primarily beverage bottling for the soft drink industry. Operating in more than 35 countries, Amcor has market share in its established regions of North America, Latin America, Europe, and Asia-Pacific. About half of group sales are derived from North America and the remainder is split equally between Western Europe and emerging markets. Australia and New Zealand sales make up less than 5% of group sales.