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CPB (The Campbell's Co) Degree of Operating Leverage : -2.42 (As of Apr. 2025)


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What is The Campbell's Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. The Campbell's Co's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was -2.42. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CPB's Degree of Operating Leverage is ranked better than
75.35% of 1838 companies
in the Consumer Packaged Goods industry
Industry Median: 0.98 vs CPB: -2.42

The Campbell's Co Degree of Operating Leverage Historical Data

The historical data trend for The Campbell's 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.

The Campbell's Co Degree of Operating Leverage Chart

The Campbell's Co Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.84 -15.83 -24.35 1.41 -7.90

The Campbell's Co 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 -0.57 -7.90 -2.80 -1.53 -2.42

Competitive Comparison of The Campbell's Co's Degree of Operating Leverage

For the Packaged Foods subindustry, The Campbell's 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.


The Campbell's Co's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

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


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The Campbell's Co Degree of Operating Leverage Calculation

The Campbell's Co'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
=( 950 (Apr. 2025) / 1202 (Apr. 2024) - 1 )/( 10225 (Apr. 2025) / 9411 (Apr. 2024) - 1 )
=-0.2097/0.0865
=-2.42***

* 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.


The Campbell's Co  (NAS:CPB) 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.


The Campbell's Co Degree of Operating Leverage Related Terms

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


The Campbell's Co Business Description

Address
1 Campbell Place, Camden, NJ, USA, 08103-1799
Over the past 150-plus years, Campbell has evolved into a leading packaged food manufacturer in North America, with a portfolio that extends beyond its iconic red-and-white labeled canned soup. In fiscal 2024, snacks accounted for nearly half of its revenue, followed by soup (28%), other simple meals (17%), and beverages (7%). Outside its namesake, its brands include Pepperidge Farm, Goldfish, Snyder's of Hanover, Swanson, Pacific Foods, Prego, Pace, V8, and recently acquired Rao's (a deal that closed in March 2024). Around 90% of its revenue results from the US and the remainder from Canada and Latin America.
Executives
Anthony Sanzio officer: Executive Vice President 1 CAMPBELL PLACE, CAMDEN NJ 08103
Stanley Polomski officer: Vice President and Controller ONE CAMPBELL PLACE, CAMDEN NJ 08103
Carrie L Anderson officer: Executive Vice President & CFO 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515
Adam Grey Ciongoli officer: Senior Vice President ONE CAMPBELL PLACE, CAMDEN NJ 08103
Bennett Jr Dorrance director 1, CAMPBELL PLACE, CAMDEN NJ 08103
Craig Slavtcheff officer: Senior Vice President 1 CAMPBELL PLACE, CAMDEN NJ 08103
Daniel L Poland officer: EVP, Chief Supply Chain Off. 399 JEFFERSON ROAD, PARSIPPANY NJ 07054
May Diane Johnson officer: Executive VP & CHRO C/O KRAFT FOODS GROUP, INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
Grant Hill director 121 ORANGE AVE, SUITE 1500, ORLANDO FL 32801
Valerie Oswalt officer: Executive Vice President 1 CAMPBELL PLACE, ATTN: LEGAL DEPARTMENT, CAMDEN NJ 08103
Mick J Beekhuizen officer: Senior Vice President & CFO C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Robert Furbee officer: Senior Vice President ONE CAMPBELL PLACE, CAMDEN NJ 08103
Randall W Larrimore director OLIN CORPORATION, 190 CARONDELET PLAZA, SUITE 1530, CLAYTON MO 63105
Christopher Foley officer: Senior Vice President CAMPBELL SOUP COMPANY, ONE CAMPBELL PLACE, CAMDEN NJ 08103
John P Bilbrey director