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LOCL (Local Bounti) Degree of Operating Leverage : -0.73 (As of Mar. 2025)


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What is Local Bounti Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Local Bounti's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.73. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LOCL's Degree of Operating Leverage is ranked better than
68.03% of 1839 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs LOCL: -0.73

Local Bounti Degree of Operating Leverage Historical Data

The historical data trend for Local Bounti'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.

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Local Bounti Degree of Operating Leverage Chart

Local Bounti Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 0.78 0.03 0.10 -0.99

Local Bounti Quarterly Data
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 0.35 2.93 2.19 -0.99 -0.73

Competitive Comparison of Local Bounti's Degree of Operating Leverage

For the Farm Products subindustry, Local Bounti'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.


Local Bounti's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

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


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Local Bounti Degree of Operating Leverage Calculation

Local Bounti'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
=( -65.374 (Mar. 2025) / -93.484 (Mar. 2024) - 1 )/( 41.36 (Mar. 2025) / 29.242 (Mar. 2024) - 1 )
=-0.3007/0.4144
=-0.73***

* 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.


Local Bounti  (NYSE:LOCL) 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.


Local Bounti Degree of Operating Leverage Related Terms

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


Local Bounti Business Description

Traded in Other Exchanges
N/A
Address
490 Foley Lane, Hamilton, MT, USA, 59840
Local Bounti Corp is a controlled environment agriculture company. Its business model is based on building local facilities, operated by local teams, to deliver fresh and quality produce to local communities while maintaining a limited carbon footprint. Using proprietary technology to grow leafy greens and herbs in smart greenhouses with a cultivation process that uses less water and land than conventional agriculture, free from herbicides or pesticides, it delivers products that have a longer shelf life, and are good in taste.
Executives
Charles R. Schwab 10 percent owner PO BOX 2226, PALM BEACH FL 33480
Travis M. Joyner director, officer: Co-Chief Executive Officer C/O LOCAL BOUNTI CORPORATION, 490 FOLEY LANE, HAMILTON MT 59840
Kathleen Valiasek officer: Chief Financial Officer AMYRIS, INC., 5850 HOLLIS STREET SUITE 100, EMERYVILLE CA 94608
Craig M. Hurlbert director, officer: Co-Chief Executive Officer C/O LOCAL BOUNTI CORPORATION, 490 FOLEY LANE, HAMILTON MT 59840
Jennifer Carr-smith director 28 LIBERTY STREET, NEW YORK NY 10005
Mark Joseph Nelson director LOCAL BOUNTI CORPORATION, 220 W MAIN STREET, HAMILTON MT 59840
B. David Vosburg officer: Chief Innovation Officer C/O LOCAL BOUNTI CORPORATION, 490 FOLEY LANE, HAMILTON MT 59840
Anna M. Fabrega officer: Chief Executive Officer C/O AMERICAN PUBLIC EDUCATION, INC., 111 WEST CONGRESS STREET, CHARLES TOWN WV 25414
Edward C Forst director 85 BROAD STREET, NEW YORK NY 10004
Matthew Nordby director C/O LOCAL BOUNTI CORPORATION, 490 FOLEY LANE, HAMILTON MT 59840
Brian C. Cook officer: President C/O LOCAL BOUNTI CORPORATION, 490 FOLEY LANE, HAMILTON MT 59840
Margaret Mccandless officer: General Counsel & Secretary C/O ROYAL GOLD, 1144 15TH STREET, SUITE 2500, DENVER CO 80202
Mark Alan Mckinney officer: Chief Operating Officer C/O LOCAL BOUNTI CORPORATION, 490 FOLEY LANE, HAMILTON MT 59840
Gary Hilberg officer: Chief Sustainability Officer C/O LOCAL BOUNTI CORPORATION, 490 FOLEY LANE, HAMILTON MT 59840
Pamela Brewster director C/O LOCAL BOUNTI CORPORATION, 490 FOLEY LANE, HAMILTON MT 59840