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WEST (Westrock Coffee Co) Degree of Operating Leverage : 53.25 (As of Mar. 2025)


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What is Westrock Coffee Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Westrock Coffee Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 53.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

WEST's Degree of Operating Leverage is ranked worse than
95.87% of 1840 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs WEST: 53.25

Westrock Coffee Co Degree of Operating Leverage Historical Data

The historical data trend for Westrock Coffee 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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Westrock Coffee Co Degree of Operating Leverage Chart

Westrock Coffee Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- -3.98 -14.49 112.40 -167.75

Westrock Coffee Co Quarterly Data
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 4.07 7.31 -31.57 -167.75 53.25

Competitive Comparison of Westrock Coffee Co's Degree of Operating Leverage

For the Packaged Foods subindustry, Westrock Coffee 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.


Westrock Coffee Co's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

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

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


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Westrock Coffee Co Degree of Operating Leverage Calculation

Westrock Coffee 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
=( -46.117 (Mar. 2025) / -20.353 (Mar. 2024) - 1 )/( 872.022 (Mar. 2025) / 851.772 (Mar. 2024) - 1 )
=1.2659/0.0238
=53.25***

* 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.


Westrock Coffee Co  (NAS:WEST) 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.


Westrock Coffee Co Degree of Operating Leverage Related Terms

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Westrock Coffee Co Business Description

Traded in Other Exchanges
Address
4009 North Rodney Parham Road, 4th Floor, Little Rock, AR, USA, 72212
Westrock Coffee Co is an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the U.S, providing coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to retail, foodservice and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries around the world. The company's segment includes Beverage Solutions and Sustainable Sourcing and Traceability. It generates maximum revenue from the Beverage Solutions segment.
Executives
Joe T Ford director C/O ENPRO INDUSTRIES INC, 5605 CARNEGIE BLVD, CHARLOTTE NC 28209-4674
Robert Patrick Kruczek 10 percent owner 100 RIVER BLUFF DRIVE, SUITE 210, LITTLE ROCK AR 72202
William A Ford officer: GROUP PRESIDENT, OPERATIONS 100 RIVER BLUFF DRIVE, SUITE 210, LITTLE ROCK AR 72202
Mark A Edmunds director 6100 N WESTERN AVENUE, OKLAHOMA CITY OK 73118
Oluwatoyin Umesiri director 100 RIVER BLUFF DRIVE, SUITE 210, LITTLE ROCK AR 72202
Hf Direct Investments Pool, Llc 10 percent owner 502 UNION AVENUE, KNOXVILLE TN 37919
Thomas Christopher Pledger officer: CHIEF FINANCIAL OFFICER 100 RIVER BLUFF DRIVE, SUITE 210, LITTLE ROCK AR 72202
Josie C Natori director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
Hugh Iii Mccoll director 100 RIVER BLUFF DRIVE, SUITE 210, LITTLE ROCK AR 72202
Rbm Acquisition, Llc other: Prior 10% Owner 55 EAST MAIN STREET, SUITE 102, CHATTANOOGA TN 37408
Rbm Investments, Llc other: Prior 10% Owner 55 EAST MAIN STREET, SUITE 102, CHATTANOOGA TN 37408
Riverview Sponsor Partners, Llc other: Prior 10% Owner 55 E. MAIN STREET, SUITE 102, CHATTANOOGA TN 37408
R Brad Martin director
Brown Brothers Harriman & Co 10 percent owner 140 BROADWAY, NEW YORK NY 10005-1101
Stephens Group, Llc 10 percent owner 100 RIVER BLUFF DRIVE, SUITE 500, LITTLE ROCK AR 72202