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Keurig Dr Pepper (FRA:DP5) Degree of Operating Leverage : 6.84 (As of Sep. 2024)


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What is Keurig Dr Pepper Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Keurig Dr Pepper's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 6.84. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Keurig Dr Pepper's Degree of Operating Leverage or its related term are showing as below:

FRA:DP5's Degree of Operating Leverage is ranked worse than
82.57% of 109 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 1.31 vs FRA:DP5: 6.84

Keurig Dr Pepper Degree of Operating Leverage Historical Data

The historical data trend for Keurig Dr Pepper'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.

Keurig Dr Pepper Degree of Operating Leverage Chart

Keurig Dr Pepper 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 1.80 0.09 4.36 -2.48 6.47

Keurig Dr Pepper 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 0.05 6.47 15.80 12.58 6.84

Competitive Comparison of Keurig Dr Pepper's Degree of Operating Leverage

For the Beverages - Non-Alcoholic subindustry, Keurig Dr Pepper'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.


Keurig Dr Pepper's Degree of Operating Leverage Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Keurig Dr Pepper's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Keurig Dr Pepper's Degree of Operating Leverage falls into.



Keurig Dr Pepper Degree of Operating Leverage Calculation

Keurig Dr Pepper'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
=( 3225.223 (Sep. 2024) / 2775.792 (Sep. 2023) - 1 )/( 13885.928 (Sep. 2024) / 13784.266 (Sep. 2023) - 1 )
=0.1619/0.0074
=21.95***

* 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.


Keurig Dr Pepper  (FRA:DP5) 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.


Keurig Dr Pepper Degree of Operating Leverage Related Terms

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Keurig Dr Pepper Business Description

Traded in Other Exchanges
Address
53 South Avenue, Burlington, MA, USA, 01803
Keurig Dr Pepper was established in 2018 following a merger between Keurig Green Mountain Coffee and Dr Pepper Snapple. The company manufactures and distributes coffee systems (including coffee brewers and single-serve coffee pods) under the Keurig and Green Mountain brands, as well as ready-to-drink beverages including flavored (non-cola) sparkling soft drinks under well-known brands such as Dr Pepper, Snapple, and Canada Dry. The company controls production and route to market for its own brands through in-house manufacturing plants and distribution infrastructure and leverages these facilities to manufacture and distribute for third-party coffee and beverage brands via licensing and partnership agreements. The US and Canada make up 95% of revenue, with the rest from Mexico.

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