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SLVM (Sylvamo) Degree of Operating Leverage : 205.59 (As of Mar. 2025)


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What is Sylvamo Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sylvamo's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 205.59. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SLVM's Degree of Operating Leverage is ranked worse than
98.58% of 282 companies
in the Forest Products industry
Industry Median: 1.085 vs SLVM: 205.59

Sylvamo Degree of Operating Leverage Historical Data

The historical data trend for Sylvamo'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.

Sylvamo Degree of Operating Leverage Chart

Sylvamo Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 1.98 14.14 1.82 -8.25 5.50

Sylvamo Quarterly Data
Dec19 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 24.04 18.31 -3.44 5.50 205.59

Competitive Comparison of Sylvamo's Degree of Operating Leverage

For the Paper & Paper Products subindustry, Sylvamo'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.


Sylvamo's Degree of Operating Leverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Sylvamo's Degree of Operating Leverage distribution charts can be found below:

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


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Sylvamo Degree of Operating Leverage Calculation

Sylvamo'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
=( 433 (Mar. 2025) / 354 (Mar. 2024) - 1 )/( 3689 (Mar. 2025) / 3685 (Mar. 2024) - 1 )
=0.2232/0.0011
=205.59***

* 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.


Sylvamo  (NYSE:SLVM) 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.


Sylvamo Degree of Operating Leverage Related Terms

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


Sylvamo Business Description

Traded in Other Exchanges
N/A
Address
6077 Primacy Parkway, Memphis, TN, USA, 38119
Sylvamo Corp is an uncoated papers company with a broad portfolio of top-tier brands and low-cost, large-scale paper mills, it produces uncoated freesheet (UFS) for paper products such as cut size and offset paper, as well as market pulp. The company offers Copy and Printer papers, Commercial Printing papers, Converting papers and Specialty papers. It operates in three geographical segments: Europe, Latin America, and North America. Key revenue is generated from North America.
Executives
Jeanmichel Ribieras director, officer: Chairman and CEO C/O INTERNATIONAL PAPER COMPANY, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Peggy Maes officer: SVP & Chief People Officer C/O SYLVAMO CORPORATION, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Hirschfeld Tatiana Kalman officer: SVP & GM, Latin America C/O SYLVAMO CORPORATION, 6077 PRIMACY PARKWAY, MEMPHIS TN 38119
John V Sims director, officer: SVP & Chief Financial Officer C/O INTERNATIONAL PAPER COMPANY, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Karl L Meyers director C/O SYLVAMO CORPORATION, 6077 PRIMACY PARKWAY, MEMPHIS TN 38119
Kevin W Ferguson officer: VP, Controller,Chief Acct.Off. C/O SYLVAMO CORPORATION, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Thomas A Cleves officer: SVP, Corporate Affairs C/O SYLVAMO CORPORATION, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Mark Wilde director C/O SYLVAMO CORPORATION, 6077 PRIMACY PARKWAY, MEMPHIS TN 38119
Citigroup Inc 10 percent owner 388 GREENWICH STREET, NEW YORK NY 10013
International Paper Co /new/ 10 percent owner 6400 POPLAR AVENUE, MEMPHIS TN 38197
Matthew Barron officer: SVP, Gen Counsel & Secretary C/O SYLVAMO CORPORATION, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Atlas Capital Gp Iv Lp 10 percent owner 100 NORTHFIELD STREET, GREENWICH CT 06830
Atlas Capital Resources Gp Iv Llc 10 percent owner 100 NORTHFIELD STREET, GREENWICH CT 06830
Andrew M Bursky 10 percent owner
Timothy J Fazio 10 percent owner ATLAS HOLDINGS LLC, 100 NORTHFIELD STREET, GREENWICH CT 06830