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MOJO (Equator Beverage Co) Degree of Operating Leverage : 2.87 (As of Mar. 2025)


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What is Equator Beverage Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Equator Beverage Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.87. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Equator Beverage Co's Degree of Operating Leverage or its related term are showing as below:

MOJO's Degree of Operating Leverage is ranked worse than
71.17% of 111 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 0.98 vs MOJO: 2.87

Equator Beverage Co Degree of Operating Leverage Historical Data

The historical data trend for Equator Beverage Co'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.

Equator Beverage Co Degree of Operating Leverage Chart

Equator Beverage Co 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 - -10.29 1,147.44 -1.10 8.98

Equator Beverage Co 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 9.00 12.99 17.16 8.98 2.87

Competitive Comparison of Equator Beverage Co's Degree of Operating Leverage

For the Beverages - Non-Alcoholic subindustry, Equator Beverage Co'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.


Equator Beverage Co's Degree of Operating Leverage Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Equator Beverage Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Equator Beverage Co's Degree of Operating Leverage falls into.


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Equator Beverage Co Degree of Operating Leverage Calculation

Equator Beverage Co'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
=( -0.593 (Mar. 2025) / -0.269 (Mar. 2024) - 1 )/( 3.424 (Mar. 2025) / 2.413 (Mar. 2024) - 1 )
=1.2045/0.419
=2.87***

* 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.


Equator Beverage Co  (OTCPK:MOJO) 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.


Equator Beverage Co Degree of Operating Leverage Related Terms

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


Equator Beverage Co Business Description

Traded in Other Exchanges
N/A
Address
185 Hudson Street, Suite 2500, Jersey City, NJ, USA, 07302
Equator Beverage Co is engaged in developing, producing, distributing, and marketing new beverage products. Its beverages have been certified Non-GMO Project Verified and USDA Organic, and It offers both nonalcoholic and ready-to-drink alcoholic options. In addition, It has a line of sparkling energy beverages targeted towards female consumers. Its beverages can be found in North America, the Caribbean, and Bermuda. It is committed to sustainability and use 100 percent recyclable, eco-friendly packaging that has a minimal impact on the environment. Furthermore, its products are plant-based, renewable, and eco-friendly. Coconut water is nature's hydration drink for the skin and body.
Executives
Peter Spinner director, 10 percent owner, officer: Chief Operating Officer 101 HUDSON STREET, 21ST FLOOR, JERSEY CITY NJ 07302
Robert Kaufman director C/O MOJO ORGANICS, INC., 101 HUDSON STREET, 21ST FLOOR, JERSEY CITY NJ 07302
Jeffrey Devlin director 875 NORTH MICHIGAN AVENUE, 2929, CHICAGO IL 60611
Glenn Simpson director, 10 percent owner, officer: Chief Executive Officer 101 HUDSON STREET, 21ST FLOOR, JERSEY CITY NJ 07302
Richard X. Seet director 101 HUDSON STREET, 21ST FLOOR, JERSEY CITY NJ 07302

Equator Beverage Co Headlines