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SDXOF (Sodexo) Degree of Operating Leverage : 0.67 (As of Feb. 2025)


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What is Sodexo Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sodexo's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 0.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SDXOF's Degree of Operating Leverage is ranked better than
57.37% of 1011 companies
in the Business Services industry
Industry Median: 0.99 vs SDXOF: 0.67

Sodexo Degree of Operating Leverage Historical Data

The historical data trend for Sodexo'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.

Sodexo Degree of Operating Leverage Chart

Sodexo Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.88 60.35 8.58 0.74 5.37

Sodexo Semi-Annual Data
Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 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 0.99 0.74 3.44 5.37 0.67

Competitive Comparison of Sodexo's Degree of Operating Leverage

For the Specialty Business Services subindustry, Sodexo'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.


Sodexo's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Sodexo's Degree of Operating Leverage distribution charts can be found below:

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


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Sodexo Degree of Operating Leverage Calculation

Sodexo'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
=( 1156.855 (Feb. 2025) / 1139.15 (Feb. 2024) - 1 )/( 25891.154 (Feb. 2025) / 25110.644 (Feb. 2024) - 1 )
=0.0155/0.0311
=0.50***

* 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.


Sodexo  (OTCPK:SDXOF) 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.


Sodexo Degree of Operating Leverage Related Terms

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


Sodexo Business Description

Industry
Address
255, quai de la Bataille-de-Stalingrad, Issy-les-Moulineaux, Cedex 9, Paris, FRA, 92130
Sodexo is one of the largest food service companies globally, operating in 45 countries with annual sales of more than EUR 20 billion. Sodexo's model rests on operating on-premises catering facilities, rather than centralized industrial kitchens. Food services remains the largest business segment, contributing 66% of revenue in 2024. Sodexo has its own group purchasing organization, or GPO, Entegra, with annual purchasing of over EUR 37 billion. The company spun off its benefits and service business, Pluxee, and now focuses on food services and its second business, facilities-management services.

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