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Schwalbchen Molkerei Jakob Berz AG (FRA:SMB) Degree of Operating Leverage : 1.18 (As of Dec. 2024)


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What is Schwalbchen Molkerei Jakob Berz AG Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Schwalbchen Molkerei Jakob Berz AG's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.18. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Schwalbchen Molkerei Jakob Berz AG's Degree of Operating Leverage or its related term are showing as below:

FRA:SMB's Degree of Operating Leverage is ranked worse than
51.9% of 1842 companies
in the Consumer Packaged Goods industry
Industry Median: 1.025 vs FRA:SMB: 1.18

Schwalbchen Molkerei Jakob Berz AG Degree of Operating Leverage Historical Data

The historical data trend for Schwalbchen Molkerei Jakob Berz AG'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.

Schwalbchen Molkerei Jakob Berz AG Degree of Operating Leverage Chart

Schwalbchen Molkerei Jakob Berz AG 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 6.34 63.26 -6.58 125.81 1.18

Schwalbchen Molkerei Jakob Berz AG Semi-Annual Data
Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.34 63.26 -6.58 125.81 1.18

Competitive Comparison of Schwalbchen Molkerei Jakob Berz AG's Degree of Operating Leverage

For the Packaged Foods subindustry, Schwalbchen Molkerei Jakob Berz AG'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.


Schwalbchen Molkerei Jakob Berz AG's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Schwalbchen Molkerei Jakob Berz AG's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Schwalbchen Molkerei Jakob Berz AG's Degree of Operating Leverage falls into.


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Schwalbchen Molkerei Jakob Berz AG Degree of Operating Leverage Calculation

Schwalbchen Molkerei Jakob Berz AG's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 8.056 (Dec. 2024) / 8.833 (Dec. 2023) - 1 )/( 207.786 (Dec. 2024) / 224.554 (Dec. 2023) - 1 )
=-0.088/-0.0747
=1.18***

* 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.


Schwalbchen Molkerei Jakob Berz AG  (FRA:SMB) 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.


Schwalbchen Molkerei Jakob Berz AG Degree of Operating Leverage Related Terms

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Schwalbchen Molkerei Jakob Berz AG Business Description

Traded in Other Exchanges
N/A
Address
Bad Schwalbach, Bad Schwalbach, DEU, 65307
Schwalbchen Molkerei Jakob Berz AG is engaged in processing and distribution of milk and milk products, the wholesale of dairy products and related foodstuffs. The company acts as a regional brand supplier of fresh and long-life milk, as well as fresh produce such as yogurt, whipped cream, sour cream, natural and fruit quark, cream, and sponge cake under the name SCHWALBCHEN. Specialties such as the coffee beverage Caffreddo and ethnic items such as Ayran are marketed nationwide. The company is engaged in the wholesale consumer trade segment.