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CRL (Charles River Laboratories International) Degree of Operating Leverage : 3.79 (As of Sep. 2024)


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What is Charles River Laboratories International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Charles River Laboratories International's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 3.79. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Charles River Laboratories International's Degree of Operating Leverage or its related term are showing as below:

CRL's Degree of Operating Leverage is ranked worse than
79.34% of 213 companies
in the Medical Diagnostics & Research industry
Industry Median: 0.43 vs CRL: 3.79

Charles River Laboratories International Degree of Operating Leverage Historical Data

The historical data trend for Charles River Laboratories International'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.

Charles River Laboratories International Degree of Operating Leverage Chart

Charles River Laboratories International 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 0.36 4.00 0.19 1.87 1.36

Charles River Laboratories International 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 2.68 1.36 -11.43 3.80 3.79

Competitive Comparison of Charles River Laboratories International's Degree of Operating Leverage

For the Diagnostics & Research subindustry, Charles River Laboratories International'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.


Charles River Laboratories International's Degree of Operating Leverage Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Charles River Laboratories International's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Charles River Laboratories International's Degree of Operating Leverage falls into.



Charles River Laboratories International Degree of Operating Leverage Calculation

Charles River Laboratories International'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
=( 650.209 (Sep. 2024) / 755.444 (Sep. 2023) - 1 )/( 4060.916 (Sep. 2024) / 4215.776 (Sep. 2023) - 1 )
=-0.1393/-0.0367
=3.79***

* 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.


Charles River Laboratories International  (NYSE:CRL) 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.


Charles River Laboratories International Degree of Operating Leverage Related Terms

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Charles River Laboratories International Business Description

Traded in Other Exchanges
Address
251 Ballardvale Street, Wilmington, MA, USA, 01887
Charles River Laboratories was founded in 1947 and is a leading provider of drug discovery and development services. The company's research model & services segment is the leading provider of animal models for laboratory testing, which breeds and delivers animal research models with specific genetic characteristics for preclinical studies around the world. The discovery & safety assessment segment includes services required to take a drug through the early development process, including discovery services. The manufacturing support segment includes microbial solutions, which provides in vitro (non-animal) testing products, biologics testing services, and avian vaccine services.
Executives
Richard F Wallman director HONEYWELL, 101 COLUMBIA ROAD, MORRISTOWN NJ 07962
Joseph W Laplume officer: EVP, Corp Strategy & Develop 251 BALLARDVALE STREET, WILMINGTON MA 01887
James C Foster director, officer: President and CEO 251 BALLARDVALE ST, WILMINGTON MA 01887
George Massaro director
Michael Gunnar Knell officer: CSVP&Chief Accounting Officer BRUKER CORPORATION, 40 MANNING ROAD, BILLERICA MA 01821
Victoria L Creamer officer: EVP & Chief People Officer 164 PINE HILL ROAD, NEW FAIRFIELD CT 06812
William D Barbo officer: Corporate Executive VP & CCO 251 BALLARDVALE STREET, WILMINGTON MA 01887
Shannon M Parisotto officer: CEVP, Disc & Safety Assessment 251 BALLARDVALE ST, WILMINGTON MA 01887
Birgit Girshick officer: Corporate Executive VP 251 BALLARDVALE STREET, WILMINGTON MA 01887
Flavia Pease officer: Corporate Executive VP 251 BALLARDVALE STREET, WILMINGTON MA 01887
David Ross Smith officer: Corporate Executive VP & CFO 251 BALLARDVALE STREET, WILMINGTON MA 01887
Deborah Turner Kochevar director 251 BALLARDVALE STREET, WILMINGTON MA 01887
Milne George M Jr director
Stephen D Chubb director C/O MATRITECH INC, 330 NEVADA STREET, NEWTON MA 02460
George Llado director 251 BALLARDVALE STREET, WILMINGTON MA 01887