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PTVE (Pactiv Evergreen) Degree of Operating Leverage : -41.43 (As of Dec. 2024)


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What is Pactiv Evergreen Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pactiv Evergreen's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -41.43. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PTVE's Degree of Operating Leverage is ranked better than
93.52% of 386 companies
in the Packaging & Containers industry
Industry Median: 1.055 vs PTVE: -41.43

Pactiv Evergreen Degree of Operating Leverage Historical Data

The historical data trend for Pactiv Evergreen'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.

Pactiv Evergreen Degree of Operating Leverage Chart

Pactiv Evergreen 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 3.77 0.81 17.88 8.30 -41.43

Pactiv Evergreen Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 8.30 4.41 -5.25 -11.50 -41.43

Competitive Comparison of Pactiv Evergreen's Degree of Operating Leverage

For the Packaging & Containers subindustry, Pactiv Evergreen'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.


Pactiv Evergreen's Degree of Operating Leverage Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Pactiv Evergreen's Degree of Operating Leverage distribution charts can be found below:

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


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Pactiv Evergreen Degree of Operating Leverage Calculation

Pactiv Evergreen's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 134 (Dec. 2024) / 36 (Dec. 2023) - 1 )/( 5148 (Dec. 2024) / 5510 (Dec. 2023) - 1 )
=2.7222/-0.0657
=-41.43***

* 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.


Pactiv Evergreen  (NAS:PTVE) 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.


Pactiv Evergreen Degree of Operating Leverage Related Terms

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


Pactiv Evergreen Business Description

Traded in Other Exchanges
N/A
Address
1900 West Field Court, Lake Forest, IL, USA, 60045
Pactiv Evergreen Inc is engaged in the business of manufacturing and distributing fresh foodservice and food merchandising products and fresh beverage cartons. It operates in two segments: Foodservice; and Food and Beverage Merchandising. These segments manufacture products such as food containers, drinkware, tableware, service ware, ready-to-eat food containers, clear rigid-display containers, trays for meat and poultry, molded fiber egg cartons, printed cartons, spouts & filling machines, and other products. It generates the majority of its revenue from Food and Beverage Merchandising. The company's geographical segments are the United States, the Rest of North America, and Others, of which the vast majority of its revenue comes from the United States.
Executives
Allen Hugli director C/O RANK GROUP, LEVEL II, 148 QUAY ST, AUCKLAND Q2 00000
Duncan Hawkesby director C/O PACTIV EVERGREEN INC., 1900 W. FIELD COURT, LAKE FOREST IL 60045
Tim A. Levenda officer: President, Foodservice 1900 W. FIELD COURT, LAKE FOREST IL 60045
Jonathan Baksht officer: Chief Financial Officer 5847 SAN FELIPE, SUITE 3300, HOUSTON TX 77057
Eric Wulf officer: President, Food Merchandising 1900 W. FIELD COURT, LAKE FOREST IL 60045
Chandra J Mitchell officer: Chief Legal Officer & Sec. C/O 7 ACQUISITION CORPORATION, 750 EAST MAIN STREET, SUITE 600, STAMFORD CT 06902
Douglas Owenby officer: Chief Operations Officer C/O PACTIV EVERGREEN INC, 1900 W FIELD COURT, LAKE FOREST IL 60045
Byron Jason Racki officer: Pres., Beverage Merchandising 3460 PRESTON RIDGE ROAD, SUITE 600, ALPHARETTA GA 30005
Michael Jack King director 1900 W. FIELD COURT, LAKE FOREST IL 60045
Rolf Stangl director 1900 W. FIELD COURT, LAKE FOREST IL 60045
John P. Rooney officer: Pres, Beverage Merchandising 1900 W. FIELD COURT, LAKE FOREST IL 60045
Michael Ragen officer: COO and CFO 1900 W. FIELD COURT, LAKE FOREST IL 60045
Jonathan D Rich director 1144 EAST MARKET STREET, AKRON OH 44316-0001
John T. Mcgrath director, officer: Chief Executive Officer 1900 W. FIELD COURT, LAKE FOREST IL 60045
Felicia D Thornton director 250 PARKCENTER BLVD PO BOX 20, BOISE ID 83726