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SJM (JM Smucker Co) Degree of Operating Leverage : 10.13 (As of Apr. 2025)


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What is JM Smucker Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. JM Smucker Co's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 10.13. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SJM's Degree of Operating Leverage is ranked worse than
83.86% of 1840 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs SJM: 10.13

JM Smucker Co Degree of Operating Leverage Historical Data

The historical data trend for JM Smucker 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.

JM Smucker Co Degree of Operating Leverage Chart

JM Smucker Co Annual Data
Trend Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24 Apr25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.23 537.50 -12.94 -190.50 -

JM Smucker Co Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 -190.50 1,076.79 56.82 10.13 -

Competitive Comparison of JM Smucker Co's Degree of Operating Leverage

For the Packaged Foods subindustry, JM Smucker 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.


JM Smucker Co's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

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


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JM Smucker Co Degree of Operating Leverage Calculation

JM Smucker Co's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -658.1 (Apr. 2025) / 1260.7 (Apr. 2024) - 1 )/( 8726.1 (Apr. 2025) / 8178.7 (Apr. 2024) - 1 )
=-1.522/0.0669
=-22.74***

* 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.


JM Smucker Co  (NYSE:SJM) 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.


JM Smucker Co Degree of Operating Leverage Related Terms

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


JM Smucker Co Business Description

Traded in Other Exchanges
Address
One Strawberry Lane, Orrville, OH, USA, 44667-0280
J.M. Smucker is a packaged food company that primarily sells through the US retail channel (78% of fiscal 2024 revenue came through its retail pet foods, coffee, and frozen handheld/spreads segments), with the remaining share consisting of Hostess and international (primarily Canada). Retail coffee is its largest category (33% of sales) with brands Folgers and Dunkin'. Pet foods (22% of sales) holds leading brands like Milk-Bone and Meow Mix. Of its remaining, approximately 22% comes from consumer foods, primarily peanut butter and jelly, through brands Jif and Smucker's. The company acquired Hostess Brands in fiscal 2024 to boost its snack and convenience store presence.
Executives
Jill R Penrose officer: Chief People & Admin Officer ONE STRAWBERRY LANE, ORRVILLE OH 44667
Jeannette L Knudsen officer: Chief Legal & Compliance Offic ONE STRAWBERRY LANE, ORRVILLE OH 44667
Tucker H Marshall officer: Chief Financial Officer ONE STRAWBERRY LANE, ORRVILLE OH 44667
Tarang Amin director C/O SCHIFF NUTRITION INTERNATIONAL, INC., 2002 SOUTH 5070 WEST, SALT LAKE CITY UT 84104
Mark T Smucker officer: Vice President
Amy C Held officer: Chief Strategy & Int'l Officer ONE STRAWBERRY LANE, ORRVILLE OH 44667
Mercedes Abramo director ONE STRAWBERRY LANE, ORRVILLE OH 44667
Richard K Smucker director, officer: President C/ WM WRIGLEY JR CO, 410 N MICHIGAN AVE, CHICAGO IL 60611
John P Brase officer: Chief Operating Officer ONE STRAWBERRY LANE, ORRVILLE OH 44667
Geoff E Tanner officer: Chief Marketing & Commercial ONE STRAWBERRY LANE, ORRVILLE OH 44667
Johnson Jonathan E Iii director 6322 S 300 S, STE 100, SALT LAKE CITY UT 84121
Nancy Lopez Knight director 2308 TARA DRIVE, ALBANY GA 31721
Jay L Henderson director 50 SOUTH LASALLE ST, CHICAGO IL 60603
Dawn C Willoughby director 1221 BROADWAY, OAKLAND CA 94612
Sandra Pianalto director 1000 EATON BOULEVARD, CLEVELAND OH 44122