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TAP (Molson Coors Beverage Co) Degree of Operating Leverage : -0.41 (As of Mar. 2025)


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What is Molson Coors Beverage Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Molson Coors Beverage Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.41. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TAP's Degree of Operating Leverage is ranked better than
73.91% of 207 companies
in the Beverages - Alcoholic industry
Industry Median: 1.37 vs TAP: -0.41

Molson Coors Beverage Co Degree of Operating Leverage Historical Data

The historical data trend for Molson Coors Beverage 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.

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Molson Coors Beverage Co Degree of Operating Leverage Chart

Molson Coors Beverage 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 16.98 -78.07 -21.34 73.78 -31.36

Molson Coors Beverage 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 163.35 41.06 103.43 -31.36 -0.41

Competitive Comparison of Molson Coors Beverage Co's Degree of Operating Leverage

For the Beverages - Brewers subindustry, Molson Coors Beverage 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.


Molson Coors Beverage Co's Degree of Operating Leverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Molson Coors Beverage Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Molson Coors Beverage Co's Degree of Operating Leverage falls into.


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Molson Coors Beverage Co Degree of Operating Leverage Calculation

Molson Coors Beverage 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
=( 1674.5 (Mar. 2025) / 1639.7 (Mar. 2024) - 1 )/( 11334.7 (Mar. 2025) / 11952.2 (Mar. 2024) - 1 )
=0.0212/-0.0517
=-0.41***

* 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.


Molson Coors Beverage Co  (NYSE:TAP) 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.


Molson Coors Beverage Co Degree of Operating Leverage Related Terms

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


Molson Coors Beverage Co Business Description

Address
BC555, P.O. Box 4030, Golden, CO, USA, 80401
Molson Coors owns well-known beer brands including Miller, Coors, Blue Moon, and Carling and ranks as the second-largest beer maker in both value and volume terms in the US, Canada, and the United Kingdom. Through licensing agreements, the firm also brews and distributes beer and hard seltzer under partner brands from Heineken, Anheuser-Busch InBev, Asahi, and Coca-Cola. The brewer uses independent distributors in the US, given the three-tier distribution requirements, while using a combination of distributors and an in-house sales team in Canada and Europe. North America remains its largest market, contributing over 80% of total revenue.
Executives
Geoffrey E. Molson director 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Winnefeld James A Jr director 870 WINTER STREET, WALTHAM MA 02451
Tracey Joubert officer: Chief Financial Officer 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Natalie G. Maciolek officer: Chief Legal & Govt Affairs Off 3939 W HIGHLAND BLVD, MILWAUKEE WI 53208
Williams Leroy James Jr director 10 LONGS PEAK DRIVE, BROOMFIELD CO 80021-2510
Anne-marie W D'angelo officer: Chief Legal & Govt Affairs Off 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Louis Vachon director 1155 METCALFE STREET, MONTREAL QUEBEC CANADA E6 0000
Julia M Brown director C/O ABLE BRANDS CO., 30 HUDSON YARDS, NEW YORK NY 10001
Simon Cox officer: Pres&CEO, Molson Coors Europe 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Roxanne Stelter officer: VP,Controller & Chf Acct Off 3939 W HIGHLAND BLVD, MILWAUKEE WI 53208
Andrew Thomas Molson director 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
David S. Coors director P.O. BOX 4030, NH353, GOLDEN CO 80401
Nessa O'sullivan director P.O. BOX 4030, NH353, GOLDEN CO 80401
Peter H Coors director, other: Chairman of the Board 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Peter John Marino officer: President of Emerging Growth 250 SOUTH WACKER DRIVE, CHICAGO IL 60606