GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Matthews International Corp (NAS:MATW) » Definitions » Degree of Operating Leverage

MATW (Matthews International) Degree of Operating Leverage : 16.10 (As of Mar. 2025)


View and export this data going back to 1994. Start your Free Trial

What is Matthews International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Matthews International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 16.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MATW's Degree of Operating Leverage is ranked worse than
88.99% of 545 companies
in the Conglomerates industry
Industry Median: 1.19 vs MATW: 16.10

Matthews International Degree of Operating Leverage Historical Data

The historical data trend for Matthews International'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.

Matthews International Degree of Operating Leverage Chart

Matthews International 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 1,018.47 -13.28 -55.18 -31.51 27.02

Matthews International 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 -111.90 314.65 27.02 17.21 16.10

Competitive Comparison of Matthews International's Degree of Operating Leverage

For the Conglomerates subindustry, Matthews International'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.


Matthews International's Degree of Operating Leverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Matthews International's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Matthews International Degree of Operating Leverage Calculation

Matthews International'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
=( -34.047 (Mar. 2025) / 74.827 (Mar. 2024) - 1 )/( 1703.999 (Mar. 2025) / 1873.285 (Mar. 2024) - 1 )
=-1.455/-0.0904
=16.10***

* 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.


Matthews International  (NAS:MATW) 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.


Matthews International Degree of Operating Leverage Related Terms

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


Matthews International Business Description

Traded in Other Exchanges
Address
Two Northshore Center, Pittsburgh, PA, USA, 15212-5851
Matthews International Corp is a personal services company that provides brand solution services, memorialization products, and industrial products in the United States and Europe. The majority of Matthews' revenue is derived from its SGK Brand Solutions business, which provides brand development services, printing equipment, creative design services, and embossing tools to the consumer packaged goods and packaging industries. The company's Memorialization segment, which sells bronze and granite memorials, caskets, and cremation equipment to the cemetery and funeral home industries, also contributes an important amount. Maximum amount of Matthews' revenue is generated from sales made in the North America, while European customers also contribute a sizable percentage.
Executives
Aleta W. Richards director TWO NORTHSHORE CENTER, PITTSBURGH PA 15212
Joseph C Bartolacci officer: President, York Casket Divisio
Ronald C Awenowicz officer: SVP, Global Compliance & HR TWO NORTHSHORE CENTER, PITTSBURGH PA 15212
Lee Lane officer: SVP Matthews Automation Soluti TWO NORTHSHORE CENTER, PITTSBURGH PA 15212
Reena Gurtner officer: SVP, Global Talent & HR 241 RIVER VALLEY ROAD, GIANURN BUILDING, LEVEL 4, SINGAPORE U0 238298
Brian J Dunn officer: President, Marking Products Di
Steven F Nicola officer: Chief Financial Officer
David A Schawk director, officer: President, Brand Solutions 674 SKYE LANE, BARRINGTON IL 60010
Lillian Etzkorn director 1570 FOREST LANE, BLOOMFIELD HILLS MI 48301
Brady Edward M Jr officer: Chief Information Officer TWO NORTH SHORE CENTER, PITTSBURGH PA 15212
Tunon Alvaro Garcia director
Davor Brkovich officer: Chief Information Officer 252 PARKWEST DRIVE, PITTSBURGH PA 15275
Gary Raymond Kohl officer: President SGK 52 WOODLAND AVENUE, GLEN RIDGE NJ 07028
Robert M Marsh officer: Treasurer 108 NANTUCKET DRIVE, PITTSBURGH PA 15238
Brian D Walters officer: V.P. and General Counsel TWO NORTHSHORE CENTER, PITTSBURGH PA 15212