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IMKTA (Ingles Markets) Degree of Operating Leverage : 7.75 (As of Mar. 2025)


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What is Ingles Markets Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ingles Markets's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 7.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

IMKTA's Degree of Operating Leverage is ranked worse than
86.09% of 302 companies
in the Retail - Defensive industry
Industry Median: 0.9 vs IMKTA: 7.75

Ingles Markets Degree of Operating Leverage Historical Data

The historical data trend for Ingles Markets'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.

Ingles Markets Degree of Operating Leverage Chart

Ingles Markets Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.12 3.39 0.63 -5.70 10.78

Ingles Markets 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 -18.90 -23.97 10.78 7.20 7.75

Competitive Comparison of Ingles Markets's Degree of Operating Leverage

For the Grocery Stores subindustry, Ingles Markets'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.


Ingles Markets's Degree of Operating Leverage Distribution in the Retail - Defensive Industry

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

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


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Ingles Markets Degree of Operating Leverage Calculation

Ingles Markets'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
=( 101.288 (Mar. 2025) / 255.418 (Mar. 2024) - 1 )/( 5410.456 (Mar. 2025) / 5867.406 (Mar. 2024) - 1 )
=-0.6034/-0.0779
=7.75***

* 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.


Ingles Markets  (NAS:IMKTA) 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.


Ingles Markets Degree of Operating Leverage Related Terms

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


Ingles Markets Business Description

Traded in Other Exchanges
Address
2913 U.S. Highway 70 West, Black Mountain, NC, USA, 28711
Ingles Markets Inc is a U.S.-based company that is principally engaged in operating a supermarket chain. The company operates the business in the southeast United States, mainly in Georgia, North Carolina, South Carolina, and Tennessee, with a few stores in Virginia and Alabama as well. The company locates its stores majorly in suburban areas, small towns, and neighborhood areas. It offers a broad range of goods, including food products, pharmacies, health and beauty care products, and general merchandise. The retail business contributes the majority of the company's revenue. The company's real estate ownership of a material portion of total stores enables it to generate rental income.
Executives
Sharp Laura Ingle director 2913 U.S. HWY. 70 WEST, BLACK MOUNTAIN NC 28711
Michael David Hogan officer: President of Subsidiary Milkco C/O INGLES MARKETS, INCORPORATED, P.O. BOX 6676, ASHEVILLE NC 28816
Patricia Jackson officer: CFO P.O. BOX 6676, ASHEVILLE NC 28816
James W Lanning director, officer: President, other: Profit Sharing Plan Trustee
John R Lowden director 140 GREENWICH AVE, GREENWICH CT 06830
Ernest E. Ferguson director P.O. BOX 6676, ASHEVILLE NC 28816
Fred Ayers director 2913 US HIGHWAY 70 WEST, BLACK MOUNTAIN NC 28711
Brenda S Tudor director, officer: VP Finance, Treasurer, CFO
L. Keith Collins director P.O. BOX 6676, ASHEVILLE NC 28816
Laura Anne Laxton Ingle 2011 Irrevocable Trust Dated September 8, 2011 10 percent owner P.O. BOX 6676, ASHEVILLE NC 28816
Robert Ingle, Sr. Administrative Trust Uta Robert Pierce Ingle Living Trust Dated December 24, 2010 10 percent owner 2913 US HIGHWAY 70 WEST, BLACK MOUNTAIN NC 28711
Robert P Ingle director, officer: Chairman and CEO, other: Profit Sharing Plan Trustee
Ingles Markets Inc Investment/profit Sharing Plan Trust 10 percent owner
Ronald B Freeman director, officer: Chief Financial Officer, other: Profit Sharing Plan Trustee P.O. BOX 6676, ASHEVILLE NC 28816
Ingle Robert P Ii director, officer: VP - Operations PO BOX 6676, ASHEVILLE NC 28816