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CVGW (Calavo Growers) Degree of Operating Leverage : 0.86 (As of Apr. 2025)


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What is Calavo Growers Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Calavo Growers's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 0.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CVGW's Degree of Operating Leverage is ranked better than
50.99% of 302 companies
in the Retail - Defensive industry
Industry Median: 0.9 vs CVGW: 0.86

Calavo Growers Degree of Operating Leverage Historical Data

The historical data trend for Calavo Growers'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.

Calavo Growers Degree of Operating Leverage Chart

Calavo Growers Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.28 335.38 7.78 46.93 -1.16

Calavo Growers 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 8.11 -0.13 -1.16 2.29 0.86

Competitive Comparison of Calavo Growers's Degree of Operating Leverage

For the Food Distribution subindustry, Calavo Growers'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.


Calavo Growers's Degree of Operating Leverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Calavo Growers's Degree of Operating Leverage distribution charts can be found below:

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


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Calavo Growers Degree of Operating Leverage Calculation

Calavo Growers'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
=( 21.07 (Apr. 2025) / 18.962 (Apr. 2024) - 1 )/( 694.486 (Apr. 2025) / 615.049 (Apr. 2024) - 1 )
=0.1112/0.1292
=0.86***

* 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.


Calavo Growers  (NAS:CVGW) 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.


Calavo Growers Degree of Operating Leverage Related Terms

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


Calavo Growers Business Description

Traded in Other Exchanges
N/A
Address
1141-A Cummings Road, Santa Paula, CA, USA, 93060
Calavo Growers Inc is in the avocado industry and an expanding provider of value-added fresh food. The group markets and distribute avocados, prepared avocado products, and other perishable foods to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers across the world. The company distributes its products both domestically and internationally and reports its operations in two different business segments: Grown and Prepared. The Grown segment consists of fresh avocados, tomatoes, and papayas. The Prepared segment comprises all other products including fresh-cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, guacamole, and salsa sold at retail and food service as well as avocado pulp sold to food service.
Executives
Lecil E Cole director, 10 percent owner, officer: Chairman of Board, CEO & Pres
Michael A Browne officer: VP-Fresh Operations C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
James E Snyder officer: Controller & Interim CFO 1141A CUMMINGS ROAD, SANTA PAULA CA 93060
Paul Alan Harrison officer: Executive Vice President C/O CALAVO GROWERS, INC., 1141-A CUMMINGS RD., SANTA PAULA CA 93060
Steve Hollister director 751 BEAR CANYON LANE, ARROYO GRANDE CA 93420
James D Helin director 1141A CUMMINGS RD, SANTA PAULA CA 93036
Helen Kurtz officer: SVP and GM - Prepared C/O CALAVO GROWERS, INC., 1141-A CUMMINGS RD., SANTA PAULA CA 93060
Danny Dumas officer: SVP & GM Grown C/O CALAVO GROWERS, INC., 1141-A CUMMINGS RD., SANTA PAULA CA 93060
Shawn Munsell officer: Chief Financial Officer C/O CALAVO GROWERS, INC., 1141-A CUMMINGS RD., SANTA PAULA CA 93060
Graciela Montgomery officer: Chief Human Resources Officer C/O CALAVO GROWERS, INC., 1141-A CUMMINGS RD, SANTA PAULA CA 93060
Brian W Kocher officer: Chief Executive Officer 1141-A CUMMINGS ROAD, SANTA PAULA CA 93060
Adriana Mendizabal director C/O CALAVO GROWERS, INC., 1141-A CUMMINGS RD., SANTA PAULA CA 93060
Mariela Irene Matute officer: Chief Financial Officer 1141-A CUMMINGS RD., SANTA PAULA CA 93060
Donald M Sanders director 2530 RED HILL AVE, SANTA ANA CA 92705
Michael Anthony Digregorio director C/O IRONCLAD PERFORMANCE WEAR CORP., 2201 PARK PLACE, SUITE 101, EL SEGUNDO CA 90245