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FBIN (Fortune Brands Innovations) Degree of Operating Leverage : -0.76 (As of Mar. 2025)


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What is Fortune Brands Innovations Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Fortune Brands Innovations's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.76. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Fortune Brands Innovations's Degree of Operating Leverage or its related term are showing as below:

FBIN's Degree of Operating Leverage is ranked better than
73.05% of 1666 companies
in the Construction industry
Industry Median: 1 vs FBIN: -0.76

Fortune Brands Innovations Degree of Operating Leverage Historical Data

The historical data trend for Fortune Brands Innovations'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.

Fortune Brands Innovations Degree of Operating Leverage Chart

Fortune Brands Innovations Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.35 1.20 1.86 9.43 -39.11

Fortune Brands Innovations 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 -7.75 0.44 0.61 -39.11 -0.76

Competitive Comparison of Fortune Brands Innovations's Degree of Operating Leverage

For the Building Products & Equipment subindustry, Fortune Brands Innovations'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.


Fortune Brands Innovations's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Fortune Brands Innovations's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Fortune Brands Innovations's Degree of Operating Leverage falls into.


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Fortune Brands Innovations Degree of Operating Leverage Calculation

Fortune Brands Innovations'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
=( 668.7 (Mar. 2025) / 651.5 (Mar. 2024) - 1 )/( 4532.6 (Mar. 2025) / 4695.8 (Mar. 2024) - 1 )
=0.0264/-0.0348
=-0.76***

* 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.


Fortune Brands Innovations  (NYSE:FBIN) 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.


Fortune Brands Innovations Degree of Operating Leverage Related Terms

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


Fortune Brands Innovations Business Description

Traded in Other Exchanges
Address
520 Lake Cook Road, Suite 300, Deerfield, IL, USA, 60015-5611
Fortune Brands Innovations is a leading home and security products company that has three reportable segments. The company's $2.6 billion water segment, led by the Moen brand, sells faucets, showers, and other plumbing fixtures; the $1.4 billion outdoors segment primarily sells entry doors under the Therma-Tru brand name and Fiberon-branded patio decking; and the $700 million security segment sells locks and other security devices under the Master Lock, SentrySafe, Yale, and August brand names.
Executives
Ron Wilson officer: EVP, Chief Supply Chain FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
Ann F Hackett director
Ronald V Waters director 75 EAST ELM STREET, CHICAGO IL 60611
Cheri M Phyfer officer: EVP, Group President 520 LAKE COOK ROAD, DEERFIELD IL 60015
Amee Chande director 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Stephanie L. Pugliese director 170 COUNTRYSIDE DRIVE, BELLEVILLE WI 53508
David V. Barry officer: EVP & CFO FORTUNE BRANDS INNOVATIONS, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
Lee John Dong Gu officer: EVP Chief Strategy & Growth 520 LAKE COOK ROAD, DEERFIELD IL 60015
Hiranda S Donoghue officer: EVP Chief Legal & Secretary 520 LAKE COOK ROAD, DEERFIELD IL 60015
Sheri Grissom officer: EVP, CHRO & Transformation 13000 WEST SILVER SPRING DRIVE, BUTLER WI 53007
Nicholas I. Fink director, officer: Chief Executive Officer 510 LAKE COOK ROAD, DEERFIELD IL 60015
Patrick D Hallinan officer: EVP & CFO FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
Mackay A D David director
Martin Thomas officer: SVP Ops &Supply Chain Strategy FORTUNE BRANDS HOME & SECURITY, INC., SUITE 300, DEERFIELD IL 60015
May Russell officer: SVP & CDO 520 LAKE COOK ROAD, DEERFIELD IL 60015