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RPM (RPM International) Degree of Operating Leverage : -0.38 (As of Feb. 2025)


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What is RPM International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. RPM International's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was -0.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RPM's Degree of Operating Leverage is ranked better than
65.55% of 1521 companies
in the Chemicals industry
Industry Median: 1.02 vs RPM: -0.38

RPM International Degree of Operating Leverage Historical Data

The historical data trend for RPM International'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.

RPM International Degree of Operating Leverage Chart

RPM International Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.54 4.43 -0.80 1.30 16.45

RPM International Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 16.45 -20.96 88.98 -0.38

Competitive Comparison of RPM International's Degree of Operating Leverage

For the Specialty Chemicals subindustry, RPM International'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.


RPM International's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, RPM International's Degree of Operating Leverage distribution charts can be found below:

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


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RPM International Degree of Operating Leverage Calculation

RPM International's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 881.542 (Feb. 2025) / 879.521 (Feb. 2024) - 1 )/( 7298.832 (Feb. 2025) / 7343.324 (Feb. 2024) - 1 )
=0.0023/-0.0061
=-0.38***

* 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.


RPM International  (NYSE:RPM) 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.


RPM International Degree of Operating Leverage Related Terms

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


RPM International Business Description

Traded in Other Exchanges
Address
2628 Pearl Road, P.O. Box 777, Medina, OH, USA, 44256
RPM International Inc manufactures and sells a variety of paints, coatings, and adhesives. The firm organizes itself into four segments based on product type. The construction products group sells coatings, roofing, insulation, and other products to distributors, contractors, and end consumers globally. The performance coatings group produces coatings that are used in construction and industrial applications like floorings and corrosion control. The consumer group sells paint, finishes, and similar products to individual consumers through hardware and craft stores. The specialty products group sells a line of products ranging from niche applications of the other groups to marine finishes, to edible food colorings. The majority of revenue comes from North America.
Executives
Frederick R. Nance director 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Michael J. Laroche officer: VP, Controller & CAO 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Matthew T Ratajczak officer: VP-Global Tax and Treasurer 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Frank C Sullivan director, officer: President and CEO
Russell L Gordon officer: VP and CFO 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Timothy R. Kinser officer: VP-Operations 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Edward W. Moore officer: VP, Gen. Counsel & Secretary 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
Ellen M Pawlikowski director 870 WINTER STREET, WALTHAM MA 02451
Elizabeth F Whited director 1400 DOUGLAS ST, OMAHA NE 68179
Thomas Gross director DANAHER CORP, 2099 PENNSYLVANIA AVE NW 12TH FL, WASHINGTON DC 20006
David A. Daberko director C/O MARATHON PETROLEUM CORPORATION, 539 S. MAIN STREET, FINDLAY OH 45840
Michael Hobart Sullivan officer: VP, Operations and CRO 2628 PEARL ROAD, P.O. BOX 777, MEDINA OH 44258
John M Ballbach director
Kirkland B Andrews director C/O EVERGY, INC., 1200 MAIN STREET, KANSAS CITY MO 64105
Robert Livingston director C/O DOVER CORPORATION, 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515