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TPB (Turning Point Brands) Degree of Operating Leverage : 0.27 (As of Dec. 2024)


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What is Turning Point Brands Degree of Operating Leverage?

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

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

TPB's Degree of Operating Leverage is ranked better than
62% of 50 companies
in the Tobacco Products industry
Industry Median: 0.855 vs TPB: 0.27

Turning Point Brands Degree of Operating Leverage Historical Data

The historical data trend for Turning Point 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.

Turning Point Brands Degree of Operating Leverage Chart

Turning Point 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 7.54 3.50 1.01 20.56 0.27

Turning Point Brands Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 20.56 -52.75 -44.48 -192.89 0.27

Competitive Comparison of Turning Point Brands's Degree of Operating Leverage

For the Tobacco subindustry, Turning Point 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.


Turning Point Brands's Degree of Operating Leverage Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Turning Point Brands's Degree of Operating Leverage distribution charts can be found below:

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


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Turning Point Brands Degree of Operating Leverage Calculation

Turning Point Brands's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 78.939 (Dec. 2024) / 76.71 (Dec. 2023) - 1 )/( 360.66 (Dec. 2024) / 325.064 (Dec. 2023) - 1 )
=0.0291/0.1095
=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.


Turning Point Brands  (NYSE:TPB) 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.


Turning Point Brands Degree of Operating Leverage Related Terms

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


Turning Point Brands Business Description

Traded in Other Exchanges
Address
5201 Interchange Way, Louisville, KY, USA, 40229
Turning Point Brands Inc operates as manufacturer, marketer, provider of consumer products that include Other Tobacco Products (OTP) in the U.S. The company offers a wide variety across the OTP spectrum including moist snuff tobacco (MST), loose-leaf chewing tobacco, premium cigarette papers, make- your-own (MYO) cigar wraps, cigars, liquid vapor products, and tobacco vaporizer products. It operates in two segments namely Zig-Zag products and Stoker's products segment. The company generates maximum revenue from the Zig-Zag products segment.
Executives
Baxter Gregory H.a. director C/O SPECIAL DIVERSIFIED OPPORTUNITIES, 1521 CONCORD PIKE, SUITE 301, WILMINGTON DE 19803
Lawrence Wexler director, officer: President and CEO 393 CARTER STREET, NEW CANAAN CT 06840
Stephen Usher director 5201 INTERCHANGE WAY, LOUISVILLE KY 40229
David Edward Glazek director, officer: Executive Chairman 767 FIFTH AVENUE 12TH FL, NEW YORK NY 10153
Graham Purdy officer: President & CEO 12442 POPLAR WOOD DRIVE, GOSHEN KY 40026
Brittani Cushman officer: Sr VP, General Counsel 5201 INTERCHANGE WAY, LOUISVILLE KY 40229
Luis Reformina officer: Sr VP, CFO 5201 INTERCHANGE WAY, LOUISVILLE KY 40229
Rohith Reddy director 5201 INTERCHANGE WAY, LOUISVILLE KY 40229
Zimmerman Arnold director 925 PARK AVE, 2A, NEW YORK NY 10028
Assia Grazioli-venier director C/O MARQUEE RAINE ACQUISITION CORP., 65 EAST 55TH STREET, 24TH FLOOR, NEW YORK NY 10022
Ashley Davis Frushone director 5201 INTERCHANGE WAY, LOUISVILLE KY 40229
Diao H.c. Charles director 1775 TYSONS BOULEVARD, TYSONS VA 22102
Standard General L.p. 10 percent owner 767 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10153
Yavor Efremov director 1 ALLIED DRIVE, SUITE 1705, LITTLE ROCK TX 72202
Standard Diversified Inc. 10 percent owner 767 5TH AVENUE, 12TH FLOOR, NEW YORK NY 10153