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SPH (Suburban Propane Partners LP) Degree of Operating Leverage : -1.84 (As of Mar. 2025)


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What is Suburban Propane Partners LP Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Suburban Propane Partners LP's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.84. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Suburban Propane Partners LP's Degree of Operating Leverage or its related term are showing as below:

SPH's Degree of Operating Leverage is ranked better than
80.12% of 488 companies
in the Utilities - Regulated industry
Industry Median: 0.835 vs SPH: -1.84

Suburban Propane Partners LP Degree of Operating Leverage Historical Data

The historical data trend for Suburban Propane Partners LP'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.

Suburban Propane Partners LP Degree of Operating Leverage Chart

Suburban Propane Partners LP Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.59 2.57 0.28 0.31 3.42

Suburban Propane Partners LP 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 -2.60 -1.24 3.42 4.11 -1.84

Competitive Comparison of Suburban Propane Partners LP's Degree of Operating Leverage

For the Utilities - Regulated Gas subindustry, Suburban Propane Partners LP'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.


Suburban Propane Partners LP's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Suburban Propane Partners LP's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Suburban Propane Partners LP's Degree of Operating Leverage falls into.


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Suburban Propane Partners LP Degree of Operating Leverage Calculation

Suburban Propane Partners LP'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
=( 172.431 (Mar. 2025) / 186.246 (Mar. 2024) - 1 )/( 1424.243 (Mar. 2025) / 1369.144 (Mar. 2024) - 1 )
=-0.0742/0.0402
=-1.84***

* 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.


Suburban Propane Partners LP  (NYSE:SPH) 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.


Suburban Propane Partners LP Degree of Operating Leverage Related Terms

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


Suburban Propane Partners LP Business Description

Traded in Other Exchanges
N/A
Address
240 Route 10 West, P.O. Box 206, Whippany, NJ, USA, 07981
Suburban Propane Partners LP distributes propane, fuel oil, and other refined fuels to customers in the East Coast and West Coast regions of the United States. Other operations include natural gas and electricity marketing in the deregulated New York and Pennsylvania markets. The company operates in three segments: Propane; Fuel Oil and Refined Fuels; and Natural Gas and Electricity. It generates maximum revenue from Propane segment.
Executives
Logan Harold R Jr director
Douglas Brinkworth officer: Vice President, Product Supply C/O SUBURBAN PROPANE PARTERS, L.P., 240 ROUTE 10 WEST, WHIPPANY NJ 07981
Michael A Schueler officer: Vice President-Product Supply C/O SUBURBAN PROPANE, 240 ROUTE 10 WEST, WHIPPANY NJ 07981
Terence J Connors director C/O SUBURBAN PROPANE, 240 ROUTE 10 WEST, WHIPPANY NJ 07981
Matthew J Chanin director C/O SUBURBAN PROPANE PARTNERS, L.P., 240 ROUTE 10 WEST, WHIPPANY NJ 07981
A Davin Dambrosio officer: Treasurer C/O SUBURBAN PROPANE PARTNERS LP, P O BOX 206, WHIPPANY NJ 07981
Jane Swift director C/O SUBURBAN PROPANE PARTNERS, L.P., 240 ROUTE 10 WEST, WHIPPANY NJ 07981-0206
Neil Scanlon officer: Vice President C/O SUBURBAN PROPANE PARTNERS, L.P., 240 ROUTE 10 WEST, WHIPPANY NJ 07981
Michael A Stivala officer: Controller C/O SUBURBAN PROPANE PARTNERS LP, P O BOX 206, WHIPPANY NJ 07981
Nandini Sankara officer: VP Mark. & Brand Strategy 240 ROUTE 10 WEST, WHIPPANY NJ 07981
Samuel Hodges officer: Vice President-Area Operations 240 ROUTE 10 WEST, WHIPPANY NJ 07981
Brent Stubbs officer: VP - Area Operations 240 ROUTE 10 WEST, WHIPPANY NJ 07981
Alejandro Centeno officer: VP, Operations 240 ROUTE 10 WEST, WHIPPANY NJ 07981
Rommel Oates director 240 ROUTE 10 WEST, WHIPPANY NJ 07981
Amy Adams director 240 ROUTE 10 WEST, WHIPPANY NJ 07981