GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » KENKO Mayonnaise Co Ltd (TSE:2915) » Definitions » Degree of Operating Leverage

KENKO Mayonnaise Co (TSE:2915) Degree of Operating Leverage : 10.69 (As of Mar. 2025)


View and export this data going back to 1984. Start your Free Trial

What is KENKO Mayonnaise Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. KENKO Mayonnaise Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 10.69. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSE:2915's Degree of Operating Leverage is ranked worse than
84.53% of 1842 companies
in the Consumer Packaged Goods industry
Industry Median: 1.025 vs TSE:2915: 10.69

KENKO Mayonnaise Co Degree of Operating Leverage Historical Data

The historical data trend for KENKO Mayonnaise 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.

* Premium members only.

KENKO Mayonnaise Co Degree of Operating Leverage Chart

KENKO Mayonnaise Co Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.81 -1.72 -6.90 56.94 10.69

KENKO Mayonnaise 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 56.94 104.69 91.11 - 10.69

Competitive Comparison of KENKO Mayonnaise Co's Degree of Operating Leverage

For the Packaged Foods subindustry, KENKO Mayonnaise 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.


KENKO Mayonnaise Co's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where KENKO Mayonnaise Co's Degree of Operating Leverage falls into.


;
;

KENKO Mayonnaise Co Degree of Operating Leverage Calculation

KENKO Mayonnaise 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
=( 5186 (Mar. 2025) / 3816 (Mar. 2024) - 1 )/( 91703 (Mar. 2025) / 88724 (Mar. 2024) - 1 )
=0.359/0.0336
=10.69***

* 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.


KENKO Mayonnaise Co  (TSE:2915) 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.


KENKO Mayonnaise Co Degree of Operating Leverage Related Terms

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


KENKO Mayonnaise Co Business Description

Traded in Other Exchanges
N/A
Address
3-8-13, Takaito Higashi, Suginami-ku, Tokyo, JPN
KENKO Mayonnaise Co Ltd is a food processing company, based in Japan. The company is engaged in the manufacturing, processing, and distribution of a variety of food products such as salads, delicatessen, mayonnaise, dressings, sauces and egg products. Also, the group is engaged in the shop operation and overseas business. Some of its products include GLOBAL mayonnaise; KENKO Restaurant Mayonnaise; Triple Balance Non Oil Bonito; Garlic Butter sauce; SOUZAITEI Frozen Thick Omelet H and others.

KENKO Mayonnaise Co Headlines

No Headlines