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PPC (Pilgrims Pride) Degree of Operating Leverage : 49.31 (As of Mar. 2025)


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What is Pilgrims Pride Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pilgrims Pride's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 49.31. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PPC's Degree of Operating Leverage is ranked worse than
95.76% of 1838 companies
in the Consumer Packaged Goods industry
Industry Median: 1.12 vs PPC: 49.31

Pilgrims Pride Degree of Operating Leverage Historical Data

The historical data trend for Pilgrims Pride'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.

Pilgrims Pride Degree of Operating Leverage Chart

Pilgrims Pride 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 -10.30 -0.78 21.67 85.29 59.64

Pilgrims Pride 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 -3.74 43.04 75.27 59.64 49.31

Competitive Comparison of Pilgrims Pride's Degree of Operating Leverage

For the Packaged Foods subindustry, Pilgrims Pride'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.


Pilgrims Pride's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

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


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Pilgrims Pride Degree of Operating Leverage Calculation

Pilgrims Pride'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
=( 1737.381 (Mar. 2025) / 796.284 (Mar. 2024) - 1 )/( 17979.366 (Mar. 2025) / 17558.523 (Mar. 2024) - 1 )
=1.1819/0.024
=49.31***

* 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.


Pilgrims Pride  (NAS:PPC) 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.


Pilgrims Pride Degree of Operating Leverage Related Terms

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


Pilgrims Pride Business Description

Traded in Other Exchanges
Address
1770 Promontory Circle, Greeley, CO, USA, 80634-9038
Pilgrim's Pride is the second-largest poultry producer in the US (59% of 2024 sales), the UK (29% including other European sales), and Mexico (12%). Its UK and European arm also includes pork operations from the 2019 acquisition of Tulip. Pilgrim's sells to chain restaurants, food processors, food distributors, and retail chains. most of its US and Mexican sales come from fresh chicken, while prepared chicken and pork constitute most of its UK and European sales. JBS owns more than 80% of Pilgrim's Pride's outstanding shares, though it failed to acquire the remaining stake in 2021 after a special board committee deemed JBS' offer undervalued Pilgrim's Pride.
Executives
Matthew R Galvanoni officer: Chief Financial Officer 5 WESTBROOK CORPORATE CENTER, WESTBROOK IL 60154
Fabio Sandri officer: Chief Financial Officer 1770 PROMONTORY CIRCLE, GREELEY CO 80634-9038
Batista Filho Wesley Mendonca director 1770 PROMONTORY CIRCLE, GREELEY CO 80634
Raul Padilla director C/O BUNGE LTD, 50 MAIN STREET, WHITE PLAINS NY 10606
Maestri Karoleski Joanita Maria director C/O PILGRIM'S PRIDE CORP, 1770 PROMONTORY CIRCLE, GREELEY CO 80634
Ajay Menon director C/O CONVERA CORPORATION, 1921 GALLOWS RD., VIENNA VA 22182
Jayson Penn officer: CEO 1770 PROMONTORY CIRCLE, GREELEY CO 80634
Arquimedes Celis director 1770 PROMONTORY CIRCLE, GREELEY CO 80634
Farha Aslam director 1770 N PROMOTORY CIRCLE, GREELEY CO 80634
William W Lovette director, officer: CEO and President 2210 WEST OAKLAWN DRIVE, SPRINGDALE AR 72762
Michael L. Cooper director 4845 US HIGHWAY 271N, PITTSBURG TX 75686
Vasconcellos Wallim Cruz De Jr director 116 RUA VISCONDE DE ITAUNA, 116, RIO DE JANEIRO D5 22460140
David E Bell director C/O BOSTON ACOUSTICS, INC., 300 JUBILEE DRIVE, PEABODY MA 01960
Charles Macaluso director
Denilson Molina director 1770 PROMONTORY CIRCLE, GREELEY CO 80634