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CNM (Core & Main) Degree of Operating Leverage : -0.06 (As of Apr. 2025)


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What is Core & Main Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Core & Main's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was -0.06. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CNM's Degree of Operating Leverage is ranked better than
69.54% of 151 companies
in the Industrial Distribution industry
Industry Median: 1.07 vs CNM: -0.06

Core & Main Degree of Operating Leverage Historical Data

The historical data trend for Core & Main'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.

Core & Main Degree of Operating Leverage Chart

Core & Main Annual Data
Trend Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial 2.59 2.73 3.26 -5.89 -0.26

Core & Main Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 -1.73 -1.51 -0.60 -0.26 -0.06

Competitive Comparison of Core & Main's Degree of Operating Leverage

For the Industrial Distribution subindustry, Core & Main'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.


Core & Main's Degree of Operating Leverage Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Core & Main's Degree of Operating Leverage distribution charts can be found below:

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


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Core & Main Degree of Operating Leverage Calculation

Core & Main's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 722 (Apr. 2025) / 727 (Apr. 2024) - 1 )/( 7611 (Apr. 2025) / 6869 (Apr. 2024) - 1 )
=-0.0069/0.108
=-0.06***

* 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.


Core & Main  (NYSE:CNM) 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.


Core & Main Degree of Operating Leverage Related Terms

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


Core & Main Business Description

Traded in Other Exchanges
Address
1830 Craig Park Court, Saint Louis, MO, USA, 63146
Core & Main Inc is a specialty distributor focusing on water, wastewater, storm drainage, and fire protection products and services. Catering to municipalities, private water companies, and contractors, it serves municipal, non-residential, and residential markets nationwide. Its diverse product line includes pipes, valves, fittings, storm drainage products, fire protection products, and meter products. Revenue is principally generated from pipes, valves, and fittings. The company operates across three construction sectors: municipal, non-residential, and residential, contributing to reliable infrastructure development nationwide.
Executives
John Weldon Stephens officer: VP, Corp. Controller C/O CORE & MAIN, INC., 1830 CRAIG PARK COURT, ST. LOUIS MO 63146
John R Schaller officer: President, Waterworks C/O CORE & MAIN, INC., 1830 CRAIG PARK COURT, ST. LOUIS MO 63146
Bradford A Cowles officer: President, Fire Protection C/O CORE & MAIN, INC., 1830 CRAIG PARK COURT, ST. LOUIS MO 63146
Mark G Whittenburg officer: General Counsel and Secretary C/O CORE & MAIN, INC., 1830 CRAIG PARK COURT, ST. LOUIS MO 63146
Margaret Newman director KEURIG DR PEPPER INC., 53 SOUTH AVE., BURLINGTON MA 01803
Stephen O Leclair director, officer: Chief Executive Officer 3100 CUMBERLAND BLVD, SUITE 1700, ATLANTA GA 30339
Jeffrey D Giles officer: VP, Corporate Department C/O CORE & MAIN, INC., 1830 CRAIG PARK COURT, ST. LOUIS MO 63146
Dennis G Gipson director C/O CORE & MAIN, INC., 1830 CRAIG PARK COURT, ST. LOUIS MO 63146
James G Castellano director C/O CORE & MAIN, INC., 1830 CRAIG PARK COURT, ST. LOUIS MO 63146
Mark R Witkowski officer: Chief Financial Officer C/O CORE & MAIN, INC., 1830 CRAIG PARK COURT, ST. LOUIS MO 63146
Orvin T Kimbrough director C/O CORE & MAIN, INC., 1830 CRAIG PARK COURT, ST. LOUIS MO 63146
Laura K Schneider officer: Chief Human Resources Officer C/O CORE & MAIN, INC., 1830 CRAIG PARK COURT, ST. LOUIS MO 63146
Cd&r Fund X Waterworks B1, L.p. 10 percent owner C/O CLAYTON, DUBILIER & RICE, LLC, 375 PARK AVENUE, 18TH FLOOR, NEW YORK NY 10152
Robert M Buck director 260 JIMMY ANN DRIVE, DAYTONA BEACH FL 32114
Bhavani Amirthalingam director 1901 CHOUTEAU AVENUE, P.O. BOX 66149, ST. LOUIS MO 63166-6149