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PRGO (Perrigo Co) Degree of Operating Leverage : -49.24 (As of Mar. 2025)


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What is Perrigo Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Perrigo Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -49.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PRGO's Degree of Operating Leverage is ranked better than
95.58% of 950 companies
in the Drug Manufacturers industry
Industry Median: 0.64 vs PRGO: -49.24

Perrigo Co Degree of Operating Leverage Historical Data

The historical data trend for Perrigo 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.

Perrigo Co Degree of Operating Leverage Chart

Perrigo Co Annual Data
Trend Jun15 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 -8.79 151.68 -12.64 192.20 5.84

Perrigo 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 -718.31 27.34 19.31 5.84 -49.24

Competitive Comparison of Perrigo Co's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo 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.


Perrigo Co's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Perrigo Co's Degree of Operating Leverage distribution charts can be found below:

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


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Perrigo Co Degree of Operating Leverage Calculation

Perrigo 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
=( 209.9 (Mar. 2025) / 62 (Mar. 2024) - 1 )/( 4335.2 (Mar. 2025) / 4555.9 (Mar. 2024) - 1 )
=2.3855/-0.0484
=-49.24***

* 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.


Perrigo Co  (NYSE:PRGO) 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.


Perrigo Co Degree of Operating Leverage Related Terms

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Perrigo Co Business Description

Traded in Other Exchanges
Address
The Sharp Building, Hogan Place, Dublin, IRL, D02 TY74
Perrigo is one of the largest consumer health companies in the world. Since 2018, Perrigo divested its animal health and generic pharmaceuticals businesses to solely focus on consumer self-care. In North America (two thirds of total sales), the firm's product mix is anchored in private-label consumer health goods, which are sold to major retailers like Walmart, Amazon, Costco, and CVS. Perrigo also plays in Europe, Australia, and parts of Asia where it primarily generates revenue through its national brands, including Compeed, Solpadeine, Coldrex, and ellaOne.
Executives
Geoffrey M. Parker director 15 RIORDAN PLACE, MENLO PARK CA 94025
Ronald Craig Janish officer: EVP, Global Op. & Supply Chain PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Jeffrey B Kindler director 35 E. 62ND ST, NEW YORK NY 10065
Katherine C. Doyle director 100 ABBOTT PARK ROAD, AP6C-1N D032L, ABBOTT PARK IL 60064
Svend Andersen director C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Alison Ives officer: EVP & Chief Scientific Officer C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Robert Willis officer: Acting CHRO C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Patrick Lockwood-taylor director, officer: CEO C/O PERRIGO COMPANY PLC, 430 MONROE AVE NW, GRAND RAPIDS MI 49503
Eduardo Guarita Bezerra officer: EVP & Chief Financial Officer C/O FRESH DEL MONTE PRODUCE INC., PO BOX 149222, CORAL GABLES FL 33134
Julia M Brown director C/O ABLE BRANDS CO., 30 HUDSON YARDS, NEW YORK NY 10001
Triona Schmelter officer: EVP & President CSCA 2021 SPRING ROAD, SUITE 600, OAK BROOK IL 60523
Murray S Kessler director, officer: CEO 714 GREEN VALLEY ROAD, GREENSBORO NC 27408
Thomas Farrington officer: Senior VP and CIO 4012 W. CANTERBURY CT., NEQUON WI 53092
Dillard James E Iii officer: EVP, Chief Scientific Officer 6601 WEST BROAD STREET, RICHMOND VA 23230
Grainne Quinn officer: EVP, Chief Medical Officer PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010