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AVO (Mission Produce) Degree of Operating Leverage : 5.64 (As of Jan. 2025)


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What is Mission Produce Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Mission Produce's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 5.64. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AVO's Degree of Operating Leverage is ranked worse than
78.55% of 303 companies
in the Retail - Defensive industry
Industry Median: 1.04 vs AVO: 5.64

Mission Produce Degree of Operating Leverage Historical Data

The historical data trend for Mission Produce'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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Mission Produce Degree of Operating Leverage Chart

Mission Produce Annual Data
Trend Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.41 11.15 -7.91 16.10 19.78

Mission Produce Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 56.30 -29.35 -10.57 19.78 5.64

Competitive Comparison of Mission Produce's Degree of Operating Leverage

For the Food Distribution subindustry, Mission Produce'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.


Mission Produce's Degree of Operating Leverage Distribution in the Retail - Defensive Industry

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

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


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Mission Produce Degree of Operating Leverage Calculation

Mission Produce's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 77.2 (Jan. 2025) / 28 (Jan. 2024) - 1 )/( 1310.2 (Jan. 2025) / 999.1 (Jan. 2024) - 1 )
=1.7571/0.3114
=5.64***

* 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.


Mission Produce  (NAS:AVO) 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.


Mission Produce Degree of Operating Leverage Related Terms

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


Mission Produce Business Description

Traded in Other Exchanges
Address
2710 Camino Del Sol, Oxnard, CA, USA, 93030
Mission Produce Inc is engaged in the business of producing and distributing avocados, serving retail, wholesale, and food service customers. Also, the company provides additional services like ripening, bagging, custom packing, and logistical management. The company's operating segments include Marketing and Distribution, International Farming and Blueberries. It generates maximum revenue from the Marketing and Distribution segment. The Marketing and Distribution segment sources fruit mainly from growers and then distributes fruit through a distribution network. Geographically distributed across North America, China, Europe, and the U.K.
Executives
Juan R Wiesner officer: See Remarks C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Taylor Family Investments, Llc 10 percent owner C/O TAYLOR FARMS, 911-B BLANCO CIRCLE, SALINAS CA 93901
Luis A Gonzalez director, 10 percent owner C/O MISSION PRODUCE,INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Stephen J Barnard director, officer: PRESIDENT AND CEO C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Bryan E Giles officer: CHIEF FINANCIAL OFFICER C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Jay A Pack director C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Tony B Sarsam director 850 76TH STREET SW, PO BOX 8700, GRAND RAPIDS MI 49518
Timothy Bulow officer: President and COO 2710 CAMINO DEL SOL, OXNARD CA 93030
Bonnie Cruickshank Lind director 3460 PRESTON RIDGE ROAD, ALPHARETTA GA 30005
Shaunte Danielle Mears-watkins director 2710 CAMINO DEL SOL, OXNARD CA 93030
Joanne C Wu officer: General Counsel and Secretary C/O MISSION PRODUCE, INC., 2710 CAMINO DEL SOL, OXNARD CA 93030
Michael A Browne officer: CHIEF OPERATING OFFICER C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Ross W Wileman officer: See Remarks C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Bruce C. Taylor director, 10 percent owner C/O TAYLOR FARMS, 911-B BLANCO CIRCLE, SALINAS CA 93901
Steve A Beebe director C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036