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EL (The Estee Lauder) Degree of Operating Leverage : 37.43 (As of Mar. 2025)


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What is The Estee Lauder Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. The Estee Lauder's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 37.43. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EL's Degree of Operating Leverage is ranked worse than
93.86% of 1841 companies
in the Consumer Packaged Goods industry
Industry Median: 1.15 vs EL: 37.43

The Estee Lauder Degree of Operating Leverage Historical Data

The historical data trend for The Estee Lauder'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 Estee Lauder Degree of Operating Leverage Chart

The Estee Lauder Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.20 14.16 -0.92 4.70 16.01

The Estee Lauder Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 5.49 16.01 57.13 -975.78 37.43

Competitive Comparison of The Estee Lauder's Degree of Operating Leverage

For the Household & Personal Products subindustry, The Estee Lauder'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 Estee Lauder's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

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


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The Estee Lauder Degree of Operating Leverage Calculation

The Estee Lauder's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -508 (Mar. 2025) / 1389 (Mar. 2024) - 1 )/( 14786 (Mar. 2025) / 15346 (Mar. 2024) - 1 )
=-1.3657/-0.0365
=37.43***

* 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 Estee Lauder  (NYSE:EL) 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 Estee Lauder Degree of Operating Leverage Related Terms

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The Estee Lauder Business Description

Address
767 Fifth Avenue, New York, NY, USA, 10153
Estee Lauder is a leader in the global prestige beauty market, participating across skin care (51% of fiscal 2024 sales), makeup (29%), fragrance (16%), and hair care (4%) categories, with top-selling brands such as Estee Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 30% of revenue from the Americas, 39% from Europe, the Middle East and Africa (including travel retail), and 31% from Asia-Pacific. Estee Lauder sells its products through department stores, travel retail, specialty multibrand beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.
Executives
Paul J Fribourg director 667 MADISON AVE, NEW YORK NY 10021
Fabrizio Freda officer: President and COO 767 FIFTH AVENUE, NEW YORK NY 10153
Charlene Barshefsky director
Lynn Forester director C/O ESTEE LAUDER COMPANIES INC, 767 FIFTH AVENUE, NEW YORK NY 10153
Jane Lauder director 767 FIFTH AVENUE, NEW YORK NY 10153
Peter Jueptner officer: President, International
Tracey Thomas Travis officer: EVP-CFO
Deirdre Stanley officer: EVP & General Counsel 4 IRVING PLACE, ROOM 16-205, NEW YORK NY 10003
Jennifer Hyman director 767 FIFTH AVENUE, C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Hudis Jane Hertzmark officer: Group President C/O THE ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
Carl P. Haney officer: EVP-Global R&D C/O ESTEE LAUDER COMPANIES INC., 767 FIFTH AVENUE, NEW YORK NY 10153
De La Faverie Stephane officer: Executive Group President C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Michael O'hare officer: EVP-Global Human Resources 767 FIFTH AVENUE, NEW YORK NY 10153
Wei Sun Christianson director MORGAN STANLEY, TOWER 1, 18 TAIPINGQIAO ST. XICHENG DIST, BEIJING F4 1000032
Barry S Sternlicht director STARWOOD CAPITAL GROUP GLOBAL LP, 1601 WASHINGTON AVENUE, SUITE 800, MIAMI BEACH FL 33139