GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Sonoco Products Co (NYSE:SON) » Definitions » Degree of Operating Leverage

SON (Sonoco Products Co) Degree of Operating Leverage : -6.64 (As of Mar. 2025)


View and export this data going back to 1972. Start your Free Trial

What is Sonoco Products Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sonoco Products Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -6.64. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SON's Degree of Operating Leverage is ranked better than
81.77% of 384 companies
in the Packaging & Containers industry
Industry Median: 1.03 vs SON: -6.64

Sonoco Products Co Degree of Operating Leverage Historical Data

The historical data trend for Sonoco Products 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.

Sonoco Products Co Degree of Operating Leverage Chart

Sonoco Products Co 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 10.27 -19.19 -141.01 -1.59 8.03

Sonoco Products Co 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 1.76 2.48 4.39 8.03 -6.64

Competitive Comparison of Sonoco Products Co's Degree of Operating Leverage

For the Packaging & Containers subindustry, Sonoco Products 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.


Sonoco Products Co's Degree of Operating Leverage Distribution in the Packaging & Containers Industry

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

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


;
;

Sonoco Products Co Degree of Operating Leverage Calculation

Sonoco Products Co'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
=( 247.96 (Mar. 2025) / 469.278 (Mar. 2024) - 1 )/( 5377.05 (Mar. 2025) / 5020.279 (Mar. 2024) - 1 )
=-0.4716/0.0711
=-6.64***

* 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.


Sonoco Products Co  (NYSE:SON) 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.


Sonoco Products Co Degree of Operating Leverage Related Terms

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


Sonoco Products Co Business Description

Traded in Other Exchanges
Address
1 N. Second Street, Hartsville, SC, USA, 29550
Over its 100-year-plus history, Sonoco Products has steadily assembled a diverse portfolio of industrial and consumer packaging product offerings such as flexible and rigid plastics, reels and spools, pallets, and composite cans. The company serves a variety of consumer and industrial end markets throughout North America. Sonoco has raised its dividend each year for more than 40 years.
Executives
John R Haley director SONOCO PRODUCTS COMPANY, 1 N SECOND STREET, HARTSVILLE SC 29550
R. Howard Coker officer: VP - RIGID PAPER & CLOSURES SONOCO PRODUCTS COMPANY, 1 N. SECOND STREET, HARTSVILLE SC 29550
Hill Robert R Jr director C/O SCBT FINANCIAL CORPORATION, 520 GERVAIS STREET, COLUMBIA SC 29201
Haynes Ernest D Iii officer: VP, Rigid Paper Containers, NA 1 NORTH 2ND STREET, HARTSVILLE SC 29550
John M Florence officer: Corporate Attorney ONE NORTH SECOND STREET, HARTSVILLE SC 29550
Adam Wood officer: VP, Industrial Europe ONE NORTH SECOND STREET, HARTSVILLE SC 29550
Russell K Grissett officer: VP, Global Flexible Packaging 1 NORTH 2ND STREET, HARTSVILLE SC 29550
Jeffrey S Tomaszewski officer: VP - Global RPC, D&P, Paper 1 N 2ND ST, HARTSVILLE SC 29550
Sean Cairns officer: Pres Global Rigid Paper&Closur 1 N 2ND ST, HARTSVILLE SC 29550
Steven L Boyd director 1 NORTH 2ND ST, HARTSVILLE SC 29550
Shawn B Munday officer: VP, Glbl Mergers & ACQ 1 N 2ND ST, HARTSVILLE SC 29550
Aditya Gandhi officer: CAO 1 NORTH SECOND STREET, HARTSVILLE SC 29550
Rodger D Fuller officer: DIV VP & GENERAL MANAGER - CPD C/O SONOCO PRODUCTS COMPANY, 1 N. SECOND STREET, HARTSVILLE SC 29550
Anne Marie Lopiccolo officer: VP, Global Human Resources 1 N 2ND ST, HARTSVILLE SC 29550
Elizabeth J Rhue officer: VP Global Envir&Sustainability 1 N. 2ND STREET, HARTSVILLE SC 29550