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LANC (Lancaster Colony) Degree of Operating Leverage : 13.75 (As of Mar. 2025)


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What is Lancaster Colony Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lancaster Colony's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 13.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LANC's Degree of Operating Leverage is ranked worse than
87.77% of 1840 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs LANC: 13.75

Lancaster Colony Degree of Operating Leverage Historical Data

The historical data trend for Lancaster Colony'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.

Lancaster Colony Degree of Operating Leverage Chart

Lancaster Colony 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 0.20 0.24 -1.46 1.83 10.62

Lancaster Colony 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 6.27 10.62 23.13 10.45 13.75

Competitive Comparison of Lancaster Colony's Degree of Operating Leverage

For the Packaged Foods subindustry, Lancaster Colony'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.


Lancaster Colony's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

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


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Lancaster Colony Degree of Operating Leverage Calculation

Lancaster Colony'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
=( 225.827 (Mar. 2025) / 206.256 (Mar. 2024) - 1 )/( 1886.52 (Mar. 2025) / 1873.595 (Mar. 2024) - 1 )
=0.0949/0.0069
=13.75***

* 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.


Lancaster Colony  (NAS:LANC) 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.


Lancaster Colony Degree of Operating Leverage Related Terms

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


Lancaster Colony Business Description

Traded in Other Exchanges
Address
380 Polaris Parkway, Suite 400, Westerville, OH, USA, 43082
Lancaster Colony Corp is a manufacturer and marketer of speciality food products. The company's segments include Retail and Foodservice. The key products and brands are salad dressing and sauces (Cardini's, Girard's, Marzetti), frozen garlic breads (New York Brand Bakery, Mamma Bella), vegetable dips and fruit dips (Marzetti), frozen parkerhouse-style yeast rolls and dinner rolls (Sister Schubert's, Mary B's), premium dry egg noodles (Amish Kitchen), frozen speciality noodles (Reames, Aunt Vi's), croutons and salad toppings, flatbread wraps, and pizza crusts.
Executives
David Alan Ciesinski officer: President & COO H. J. HEINZ COMPANY, P.O. BOX 57, PITTSBURGH PA 15230
Elliot K. Fullen director 380 POLARIS PARKWAY, SUITE 400, WESTERVILLE OH 43082
Knight George F. Iii director 380 POLARIS PARKWAY, SUITE 400, WESTERVILLE OH 43082
Kristin Bird officer: President-Foodservice Division 380 POLARIS PARKWAY, SUITE 400, WESTERVILLE OH 43082
Zena Srivatsa Arnold director 2500 BEE CAVE ROAD, BLDG. 1, SUITE 200, ROLLINGWOOD TX 78746
Luis Viso officer: Chief Supply Chain Officer 380 POLARIS PARKWAY, SUITE 400, WESTERVILLE OH 43082
Carl R. Stealey officer: President-T Marzetti Retail 380 POLARIS PARKWAY, SUITE 400, WESTERVILLE OH 43082
David S. Nagle officer: SVP-T Marzetti Co Supply Chain 380 POLARIS PARKWAY, WESTERVILLE OH 43082
K. Pigott Thomas officer: CFO and Asst. Secretary C/O MGP INGREDIENTS, INC., 100 COMMERCIAL STREET, ATCHISON KS 66002
Alan F Harris director
Gerlach John B Jr director, officer: Chairman & CEO LANCASTER COLONY CORP, 37 W. BROAD ST., COLUMBUS OH 43215
Barbara L Brasier director C/O MEADWESTVACO CORP, ONE HIGH RIDGE PARK, STAMFORD CT 06905
Michael H Keown director P O BOX 77057, FORT WORTH TX 76177
Timothy A. Tate officer: SVP-TMarzettiFoodservice Sales 380 POLARIS PARKWAY, WESTERVILLE OH 43082
Neeli Bendapudi director FISHER COLLEGE OF BUSINESS, 556 FISHER H, 2100 NEIL AVENUE, COLUMBUS OH 43210