GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Sow Good Inc (NAS:SOWG) » Definitions » Degree of Operating Leverage

SOWG (Sow Good) Degree of Operating Leverage : -0.27 (As of Sep. 2024)


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

What is Sow Good Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sow Good's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -0.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SOWG's Degree of Operating Leverage is ranked better than
66.72% of 1833 companies
in the Consumer Packaged Goods industry
Industry Median: 1.19 vs SOWG: -0.27

Sow Good Degree of Operating Leverage Historical Data

The historical data trend for Sow Good'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.

Sow Good Degree of Operating Leverage Chart

Sow Good Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 0.15 -0.02

Sow Good Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 0.02 -0.02 -0.02 -0.07 -0.27

Competitive Comparison of Sow Good's Degree of Operating Leverage

For the Packaged Foods subindustry, Sow Good'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.


Sow Good's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

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



Sow Good Degree of Operating Leverage Calculation

Sow Good's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 3.723 (Sep. 2024) / -9.418 (Sep. 2023) - 1 )/( 40.13 (Sep. 2024) / 6.595 (Sep. 2023) - 1 )
=-1.3953/5.0849
=-0.27***

* 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.


Sow Good  (NAS:SOWG) 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.


Sow Good Degree of Operating Leverage Related Terms

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


Sow Good Business Description

Traded in Other Exchanges
Address
1440 North Union Bower Road, Irving, TX, USA, 75061
Sow Good Inc is engaged in manufacturing and marketing freeze-dried fruits, vegetables, snacks, smoothies, and soups. The company also sells gluten-free granola products under the Sow Good brand. The company is developing a freeze-dried candy market and snack manufacturing to provide consumers with flavorful freeze-dried treats.
Executives
Lyle Berman director, 10 percent owner 10275 WAYZATA BOULEVARD, SUITE 100, MINNETONKA MN 55305
Ira Goldfarb director, 10 percent owner, officer: Executive Chairman (1) 1918 N. OLIVE ST, DALLAS TX 75201
Brad Berman director, 10 percent owner C/O LAKES ENTERTAINMENT, INC., 130 CHESHIRE LANE, MINNETONKA MN 55305
Claudia Goldfarb director, 10 percent owner, officer: Chief Executive Officer (2) 1918 N. OLIVE STREET, APT. 3302, DALLAS TX 75201
Joe Mueller director 6927 ALTAMONTE DRIVE, ROGERS AR 72758
Timothy James Creed director 3418 GOLF CLUB LN., NASHVILLE TN 37215
Brad Burke officer: Interim CFO 4049 PURDUE AVE, DALLAS TX 77225
Chris Ludeman director 6154 PARK LANE, DALLAS TX 75225
Greg Creed director 1441 GARDINER LANE, LOUISVILLE KY 40213
S-fdf, Llc 10 percent owner 1440 N. UNION BOWER RD., IRVIN TX 75061
Benjamin S Oehler director 10275 WAYZATA BLVD. SUITE 100, MINNETONKA MN 55305
Joseph J Lahti director 2975 SOMERSET LANE, LONG LAKE MN 55356
Kenneth Decubellis officer: Chief Executive Officer 10275 WAYZATA BOULEVARD, SUITE 310, MINNETONKA MN 55305
Neil I Sell 10 percent owner 3300 WELLS FARGO CENTER, 90 SOUTH 7TH STREET, MINNEAPOLIS MN 55402
Michael Eisele officer: Chief Operating Officer 10275 WAYZATA BOULEVARD, MINNETONKA MN 55305