GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Performance Food Group Co (NYSE:PFGC) » Definitions » Degree of Operating Leverage

PFGC (Performance Food Group Co) Degree of Operating Leverage : 0.40 (As of Mar. 2025)


View and export this data going back to 2015. Start your Free Trial

What is Performance Food Group Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Performance Food Group Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PFGC's Degree of Operating Leverage is ranked better than
58.8% of 301 companies
in the Retail - Defensive industry
Industry Median: 0.89 vs PFGC: 0.40

Performance Food Group Co Degree of Operating Leverage Historical Data

The historical data trend for Performance Food Group 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.

Performance Food Group Co Degree of Operating Leverage Chart

Performance Food Group Co 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 -5.07 -14.01 1.02 9.42 4.90

Performance Food Group 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 12.69 4.90 1.24 -0.48 0.40

Competitive Comparison of Performance Food Group Co's Degree of Operating Leverage

For the Food Distribution subindustry, Performance Food Group 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.


Performance Food Group Co's Degree of Operating Leverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Performance Food Group Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Performance Food Group Co's Degree of Operating Leverage falls into.


;
;

Performance Food Group Co Degree of Operating Leverage Calculation

Performance Food Group 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
=( 828.6 (Mar. 2025) / 808.5 (Mar. 2024) - 1 )/( 61549.2 (Mar. 2025) / 57957.2 (Mar. 2024) - 1 )
=0.0249/0.062
=0.40***

* 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.


Performance Food Group Co  (NYSE:PFGC) 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.


Performance Food Group Co Degree of Operating Leverage Related Terms

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


Performance Food Group Co Business Description

Traded in Other Exchanges
Address
12500 West Creek Parkway, Richmond, VA, USA, 23238
Performance Food Group Co , markets and distributes national and company-branded food and food-related products. The company also specializes in distributing candy, snacks, beverages, cigarettes, other tobacco products, health and beauty care products and other items to vending distributors, box retailers, theaters, convenience stores, drug stores, grocery stores, travel providers, and hospitality providers. The company has three reportable segments: Foodservice, Vistar, and Convenience.
Executives
Craig Howard Hoskins officer: See Remarks C/O PERFORMANCE FOOD GROUP COMPANY, 12500 WEST CREEK PARKWAY, RICHMOND VA 23238
Hugh Patrick Hatcher officer: See Remarks 12500 WEST CREEK PARKWAY, RICHMOND VA 23238
George L Holm director, officer: See Remarks 3000 69TH STREET EAST, PALMETTO FL 34221
Donald S. Bulmer officer: See Remarks 12500 WEST CREEK PARKWAY, RICHMOND VA 23238
Patrick T. Hagerty officer: See Remarks C/O PERFORMANCE FOOD GROUP COMPANY, 12500 WEST CREEK PARKWAY, RICHMOND VA 23238
A Brent King officer: See Remarks 4951 LAKE BROOK DR, STE 500, GLEN ALLEN VA 23060
Scott E Mcpherson officer: See Remarks 395 OYSTER POINT BLVD, SUITE 415, SAN FRANCISCO CA 94080
Kimberly Grant director 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
David V Singer director 13024 BALLANTYNE CORPORATE PL, SUITE 900, CHARLOTTE NC 28277
Christine R Vlahcevic officer: See Remarks 1021 EAST CARY STREET, PO BOX 2350, RICHMOND VA 23218-2350
Matthew C Flanigan director LEGGETT & PLATT INC, NO 1 LEGGETT ROAD, CARTHAGE MO 64836
Laura Jean Flanagan director 395 OYSTER POINT BLVD, SUITE 415, SOUTH SAN FRANCISCO CA 94080
James D Hope officer: See Remarks 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Warren M Thompson director 4951 LAKE BROOK DRIVE, SUITE 500, GLEN ALLEN VA 23060
Barbara Beck director 5301 N IRONWOOD RD, MILWAUKEE WI 53217