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SLGN (Silgan Holdings) Degree of Operating Leverage : -3.75 (As of Mar. 2025)


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What is Silgan Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Silgan Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -3.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SLGN's Degree of Operating Leverage is ranked better than
80.16% of 383 companies
in the Packaging & Containers industry
Industry Median: 1.36 vs SLGN: -3.75

Silgan Holdings Degree of Operating Leverage Historical Data

The historical data trend for Silgan Holdings'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.

Silgan Holdings Degree of Operating Leverage Chart

Silgan Holdings 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 4.45 0.81 0.35 0.13 6.13

Silgan Holdings 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 0.30 0.05 0.12 6.13 -3.75

Competitive Comparison of Silgan Holdings's Degree of Operating Leverage

For the Packaging & Containers subindustry, Silgan Holdings'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.


Silgan Holdings's Degree of Operating Leverage Distribution in the Packaging & Containers Industry

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

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


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Silgan Holdings Degree of Operating Leverage Calculation

Silgan Holdings'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
=( 532.864 (Mar. 2025) / 575.927 (Mar. 2024) - 1 )/( 6004.317 (Mar. 2025) / 5886.962 (Mar. 2024) - 1 )
=-0.0748/0.0199
=-3.75***

* 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.


Silgan Holdings  (NYSE:SLGN) 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.


Silgan Holdings Degree of Operating Leverage Related Terms

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


Silgan Holdings Business Description

Traded in Other Exchanges
Address
4 Landmark Square, Suite 400, Stamford, CT, USA, 06901
Silgan Holdings manufactures about half of the metal food containers in North America. Its major customers include Campbell Soup, Nestle, and Del Monte. Silgan's other business segments include plastic dispensers and containers for personal and healthcare products and a closures business that manufactures metal and plastic lids and caps.
Executives
Adam J Greenlee officer: EVP - Operations SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Robert B Lewis officer: EVP and CFO 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Anthony J Allott officer: President and COO 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Stacey J. Mcgrath officer: Vice President, Tax C/O SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Jay A Martin officer: Vice President P O BOX 5311, NEW CASTLE PA 16105
B. Frederick Prinzen officer: Vice President, Corp. Dev. SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, STAMFORD CT 06901
Thomas James Snyder officer: President - Silgan Containers C/O SILGAN CONTAINERS LLC, 21600 OXNARD STREET, SUITE 1600, WOODLAND HILLS CA 91367
Joseph M Jordan director C/O SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Shawn C Fabry officer: SVP, Corporate Development C/O SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Kimberly Irene Ulmer officer: Vice President & Controller 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Niharika Ramdev director C/O XL HYBRIDS, INC., 145 NEWTON STREET, BOSTON MA 02135
Daniel Patrick Murphy officer: Vice President & Controller C/O SILGAN HOLDINGS INC., 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
D Greg Horrigan director, 10 percent owner, officer: Co-Chairman and Co-CEO 4 LANDMARK SQUARE, SUITE 400, STAMFORD CT 06901
Kimberly A Fields director C/O ALLEGHENY TECHNOLOGIES INCORPORATED, 1000 SIX PPG PLACE, PITTSBURGH PA 15217
William T Donovan director C/O SILGAN HOLDINGS INC., 4 LANDMARK SQUARE SUITE 400, STAMFORD CT 06901