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STCB (Starco Brands) Degree of Operating Leverage : 3.91 (As of Mar. 2025)


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What is Starco Brands Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Starco Brands's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.91. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STCB's Degree of Operating Leverage is ranked worse than
70.24% of 1838 companies
in the Consumer Packaged Goods industry
Industry Median: 1.12 vs STCB: 3.91

Starco Brands Degree of Operating Leverage Historical Data

The historical data trend for Starco Brands'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.

Starco Brands Degree of Operating Leverage Chart

Starco Brands 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 -1.37 9.77 -0.14 -6.23 7.80

Starco Brands 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 29.34 7.98 59.35 7.80 3.91

Competitive Comparison of Starco Brands's Degree of Operating Leverage

For the Packaged Foods subindustry, Starco Brands'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.


Starco Brands's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

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


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Starco Brands Degree of Operating Leverage Calculation

Starco Brands'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
=( -10.089 (Mar. 2025) / -48.058 (Mar. 2024) - 1 )/( 54.046 (Mar. 2025) / 67.74 (Mar. 2024) - 1 )
=-0.7901/-0.2022
=3.91***

* 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.


Starco Brands  (OTCPK:STCB) 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.


Starco Brands Degree of Operating Leverage Related Terms

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


Starco Brands Business Description

Traded in Other Exchanges
N/A
Address
250 26th Street, Suite 200, Santa Monica, CA, USA, 90402
Starco Brands Inc is engaged in the direct response marketing of consumer products. The company involves marketing, distributing, & developing consumer products to be sold through retail. It mainly selects products invented by others for use in a direct response marketing program and also develops its products for sale as well. The company retails various products in the following categories: household, DIY/hardware, automotive, food products, personal care, suncare, spirits & beverages. It has three segments, Starco Brands. Skylar and Soylent. The Soylent segment generates the majority of revenue through the sale of nutritional products, mainly drinks. The Skylar segment generates revenue through the sale of fragrances.
Executives
Ross Jeffery Sklar director 3137 EAST 26TH STREET, VERNON CA 90058
Ah Parallel Fund Iv-a, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
A16z Seed-iii, Llc 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Ah Equity Partners Iv, L.l.c. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Ah Equity Partners Iii, L.l.c. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Andreessen Horowitz Fund Iii-a, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Andreessen Horowitz Fund Iii-b, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Andreessen Horowitz Fund Iii, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Andreessen Horowitz Fund Iii-q, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Gv 2016 Gp, L.p. 10 percent owner 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
Gv 2016 Gp, L.l.c. 10 percent owner 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW MA 94043
2016, L.p. Gv 10 percent owner 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
Alphabet Inc. 10 percent owner 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
Ah Parallel Fund Iv-q, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Ah Parallel Fund Iv-b, L.p. 10 percent owner 2865 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025