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CMP (Compass Minerals International) Degree of Operating Leverage : 29.77 (As of Jun. 2024)


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What is Compass Minerals International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Compass Minerals International's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 29.77. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Compass Minerals International's Degree of Operating Leverage or its related term are showing as below:

CMP's Degree of Operating Leverage is ranked worse than
94.04% of 721 companies
in the Metals & Mining industry
Industry Median: 0.76 vs CMP: 29.77

Compass Minerals International Degree of Operating Leverage Historical Data

The historical data trend for Compass Minerals International'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.

Compass Minerals International Degree of Operating Leverage Chart

Compass Minerals International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Sep21 Sep22 Sep23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.88 0.06 29.72 -1.10 -21.19

Compass Minerals International Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 113.62 -21.19 16.15 29.77 -

Competitive Comparison of Compass Minerals International's Degree of Operating Leverage

For the Other Industrial Metals & Mining subindustry, Compass Minerals International'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.


Compass Minerals International's Degree of Operating Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Compass Minerals International's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Compass Minerals International's Degree of Operating Leverage falls into.



Compass Minerals International Degree of Operating Leverage Calculation

Compass Minerals International's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -91.5 (Jun. 2024) / 100.1 (Jun. 2023) - 1 )/( 1142.2 (Jun. 2024) / 1220.5 (Jun. 2023) - 1 )
=-1.9141/-0.0642
=29.84***

* 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.


Compass Minerals International  (NYSE:CMP) 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.


Compass Minerals International Degree of Operating Leverage Related Terms

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


Compass Minerals International Business Description

Traded in Other Exchanges
Address
9900 West 109th Street, Suite 100, Overland Park, KS, USA, 66210
Compass Minerals currently produces two primary products: salt and specialty potash fertilizer. The company's main assets include rock salt mines in Ontario, Canada, the us state of Louisiana, and the United Kingdom. The fertilizer is produced from a brine operation at the Great Salt Lake in Utah that produces sulfate of potash and magnesium chloride. Compass' salt products are used for deicing and also by industrial and consumer end markets. The firm's sulfate of potash is used by growers of high-value crops that are sensitive to standard potash.
Executives
Joseph E Reece director ONE VALERO WAY, BUILDING D, SUITE 200, SAN ANTONIO TX 78249
James D. Standen officer: Interim CFO & Treasurer 9900 W. 109 STREET, SUITE 100, OVERLAND PARK KS 66210
Jill V Gardiner director C/O COMPASS MINERALS INTERNATIONAL, INC., 9900 W 109TH ST STE 100, OVERLAND PARK KS 66210
Shane T Wagnon director C/O COMPASS MINERALS INTERNATIONAL, INC., 9900 W 109TH ST STE 100, OVERLAND PARK KS 66210
Jon A Chisholm director C/O COMPASS MINERALS INTERNATIONAL, INC., 9900 W 109TH ST STE 100, OVERLAND PARK KS 66210
Km&t Investment Holdings, Llc director, 10 percent owner 4111 E 37TH ST N, WICHITA KS 67220
Koch Industries Inc director, 10 percent owner 4111 EAST 37TH STREET NORTH, WICHITA KS 67220
Melissa M Miller director 201 ISABELLA STREET, PITTSBURGH PA 15212
Kevin S Crutchfield director, officer: President and CEO ONE ALPHA PLACE, P.O. BOX 2345, ABINGDON VA 24212
Mary L Frontczak officer: Chief Legal Officer 9900 W 109TH STREET, SUITE 100, OVERLAND PARK KS 66210
Lori A Walker director
Amy Yoder director C/O SPECTRUM BRANDS, INC., 6 CONCOURSE PARKWAY, SUITE 3300, ATLANTA GA 30328
Richard P Dealy director 777 HIDDEN RIDGE, IRVING TX 75038
Edward C Dowling director 19 NEDS POINT ROAD, MATTAPOISETT MA 02739
Teresa D Cook officer: Chief Accounting Officer C/O COMPASS MINERALS INTERNATIONAL, INC., 9900 W 109TH ST STE 100, OVERLAND PARK KS 66210

Compass Minerals International Headlines