GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Church & Dwight Co Inc (NYSE:CHD) » Definitions » Degree of Operating Leverage

CHD (Church & Dwight Co) Degree of Operating Leverage : 4.24 (As of Sep. 2024)


View and export this data going back to 1990. Start your Free Trial

What is Church & Dwight Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Church & Dwight Co's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 4.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CHD's Degree of Operating Leverage is ranked worse than
70.7% of 1833 companies
in the Consumer Packaged Goods industry
Industry Median: 1.19 vs CHD: 4.24

Church & Dwight Co Degree of Operating Leverage Historical Data

The historical data trend for Church & Dwight 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.

Church & Dwight Co Degree of Operating Leverage Chart

Church & Dwight Co 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 1.19 1.79 0.83 -12.19 8.29

Church & Dwight Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -3.71 8.29 9.36 11.30 4.24

Competitive Comparison of Church & Dwight Co's Degree of Operating Leverage

For the Household & Personal Products subindustry, Church & Dwight 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.


Church & Dwight Co's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Church & Dwight Co's Degree of Operating Leverage falls into.



Church & Dwight Co Degree of Operating Leverage Calculation

Church & Dwight Co's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 797 (Sep. 2024) / 662.2 (Sep. 2023) - 1 )/( 6053.1 (Sep. 2024) / 5775.9 (Sep. 2023) - 1 )
=0.2036/0.048
=4.24***

* 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.


Church & Dwight Co  (NYSE:CHD) 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.


Church & Dwight Co Degree of Operating Leverage Related Terms

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


Church & Dwight Co Business Description

Address
500 Charles Ewing Boulevard, Ewing, NJ, USA, 08628
Church & Dwight is the leading global producer of baking soda. Beyond baking soda, the products in its portfolio have vast category reach, including laundry products, cat litter, oral care, deodorant, and nasal care, all sold under the Arm & Hammer brand. Its mix also includes Batiste, OxiClean, Vitafusion, WaterPik, Hero, and TheraBreath, which together with Arm & Hammer constitute around 70% of its annual sales and profits. Even as it works to extend the reach of its products, Church & Dwight still derives more than 80% of its sales from its home market in the US.
Executives
Rick Spann officer: E.V.P. Global Operations 500 CHARLES EWING BLVD, EWING NJ 08628
Joseph James Longo officer: VP, Controller and CAO 500 CHARLES EWING BLVD, EWING NJ 08628
De Maynadier Patrick D officer: EVP, Gen. Counsel & Secretary
Bradley C Irwin director 469 NORTH HARRISON STREET, PRINCETON NJ 08543
Matthew Farrell officer: Vice President Finance and CFO
Arthur B Winkleblack director
Barry A. Bruno officer: EVP, International 500 CHARLES EWING BLVD, EWING NJ 08628
Carlen Hooker officer: EVP, Chief Commercial Officer 500 CHARLES EWING BLVD, EWING NJ 08628
Richard A Dierker officer: E.V.P. Finance & C.F.O. 500 CHARLES EWING BLVD, EWING NJ 08628
Ravichandra Krishnamurty Saligram director C/O NEWELL BRANDS INC., 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Robert K Shearer director 400 NORTH ELM STREET, GREENSBORO NC 27403
Penry W Price director 469 N. HARRISON STREET, PRINCETON NJ 08530
Michael Read officer: EVP, International 500 CHARLES EWING BLVD, EWING NJ 08628
Brian D Buchert officer: EVP of Strategy, M&A, and BP 500 CHARLES EWING BLVD, EWING NJ 08628
Rene Hemsey officer: E.V.P. HR 500 CHARLES EWING BLVD, EWING NJ 08628