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BTTR (Better Choice Co) Degree of Operating Leverage : 10.82 (As of Dec. 2024)


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What is Better Choice Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Better Choice Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 10.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BTTR's Degree of Operating Leverage is ranked worse than
84.94% of 1839 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs BTTR: 10.82

Better Choice Co Degree of Operating Leverage Historical Data

The historical data trend for Better Choice Co'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.

Better Choice Co Degree of Operating Leverage Chart

Better Choice Co Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.42 -14.12 -36.36 1.52 10.82

Better Choice Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 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 1.52 2.23 4.22 2.83 10.82

Competitive Comparison of Better Choice Co's Degree of Operating Leverage

For the Packaged Foods subindustry, Better Choice Co'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.


Better Choice Co's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Better Choice Co's Degree of Operating Leverage distribution charts can be found below:

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


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Better Choice Co Degree of Operating Leverage Calculation

Better Choice Co'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
=( 0.308 (Dec. 2024) / -21.415 (Dec. 2023) - 1 )/( 34.975 (Dec. 2024) / 38.592 (Dec. 2023) - 1 )
=-1.0144/-0.0937
=10.82***

* 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.


Better Choice Co  (AMEX:BTTR) 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.


Better Choice Co Degree of Operating Leverage Related Terms

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


Better Choice Co Business Description

Traded in Other Exchanges
N/A
Address
12400 Race Track Road, Tampa, FL, USA, 33626
Better Choice Co Inc is a pet health and wellness portfolio company, offering consumers a wide variety of recognized premium pet products and hemp-derived CBD supplements. Its portfolio includes kibble and canned dog and cat food, freeze-dried raw dog food and treats, vegan dog food and treats, oral care products, supplements and grooming aids. Its core products sold under the Halo brand are sustainably sourced, derived from real whole meat and no rendered meat meal and include non-GMO fruits and vegetables. Its core products sold under the TruDog brand are made according to nutritional philosophy of fresh, meat-based nutrition and minimal processing.
Executives
Lionel F. Conacher director C/O DESTINATION XL GROUP, INC., 555 TURNPIKE STREET, CANTON MA 02021
Michael Young director 12400 RACE TRACK ROAD, TAMPA FL 33626
Donald Young officer: EVP, Sales 12400 RACE TRACK ROAD, TAMPA FL 33626
Robert Sauermann officer: COO 12400 RACE TRACK ROAD, TAMPA FL 33626
Scott Lerner officer: CEO 12400 RACE TRACK ROAD, TAMPA FL 33626
Sharla A Cook officer: CFO 12400 RACE TRACK ROAD, TAMPA FL 33626
Word John M Iii director, 10 percent owner 12400 RACE TRACK ROAD, TAMPA FL 33626
Arlene Dickinson director 12400 RACE TRACK ROAD, TAMPA FL 33626
Gil Fronzaglia director 12400 RACE TRACK ROAD, TAMPA FL 33626
Jeff D Davis director 12400 RACE TRACK ROAD, TAMPA FL 33626
Lori Taylor director 12400 RACE TRACK ROAD, TAMPA FL 33626
David Richard Lelong director, 10 percent owner, officer: President 70 WASHINGTON ST., APT. 6K, BROOKLYN NY 11201
Michael S Morrow director, 10 percent owner, officer: Chairman and President 4791 S KINGS ROW DRIVE APT 23, SALT LAKE CITY X1 84117-5993