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AECOM (ACM) Degree of Operating Leverage : 17.15 (As of Dec. 2024)


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What is AECOM Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. AECOM's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 17.15. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ACM's Degree of Operating Leverage is ranked worse than
91.63% of 1673 companies
in the Construction industry
Industry Median: 0.99 vs ACM: 17.15

AECOM Degree of Operating Leverage Historical Data

The historical data trend for AECOM'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.

AECOM Degree of Operating Leverage Chart

AECOM Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.50 85.15 -1.48 -4.66 11.86

AECOM 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 -3.23 -3.46 4.46 11.86 17.15

Competitive Comparison of AECOM's Degree of Operating Leverage

For the Engineering & Construction subindustry, AECOM'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.


AECOM's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, AECOM's Degree of Operating Leverage distribution charts can be found below:

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


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AECOM Degree of Operating Leverage Calculation

AECOM'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
=( 986.762 (Dec. 2024) / 390.922 (Dec. 2023) - 1 )/( 16219.73 (Dec. 2024) / 14896.026 (Dec. 2023) - 1 )
=1.5242/0.0889
=17.15***

* 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.


AECOM  (NYSE:ACM) 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.


AECOM Degree of Operating Leverage Related Terms

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


AECOM Business Description

Industry
Traded in Other Exchanges
Address
13355 Noel Road, Suite 400, Dallas, TX, USA, 75240
Aecom is one of the largest global providers of design, engineering, construction, and management services. It serves a broad spectrum of end markets including infrastructure, water, transportation, and energy. Based in Los Angeles, Aecom has a presence in over 150 countries and employs 51,000. The company generated $16.1 billion in sales in fiscal 2024.
Executives
David Y. Gan officer: Chief Legal Officer C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
Gaurav Kapoor officer: SVP, Global Controller (PAO) C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90210
Troy Rudd officer: EVP, CFO C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90064
Douglas Stotlar director C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Van 't Noordende Alexander M director C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Lara Poloni officer: Chief Executive, EMIA C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
Daniel R. Tishman director, officer: Vice Chairman 555 S. FLOWER STREET, SUITE 3700, LOS ANGELES CA 90071
Todd Battley officer: Chief Strategy Officer C/O AECOM, 300 SOUTH GRAND AVENUE, 9TH FLOOR, LOS ANGELES CA 90071
Kristy Pipes director C/O PS BUSINESS PARKS, INC., 701 WESTERN AVENUE, GLENDALE CA 91201
Diane C Creel director 249 BAY SHORE AVENUE, N/A, LONG BEACH CA 90803
Lydia H Kennard director 155 N LAKE AVE, PASADENA CA 91101
Shirley A Adams officer: Chief Human Resources Officer C/O AECOM, 300 SOUTH GRAND AVENUE, 9TH FLOOR, LOS ANGELES CA 90071
Brad W Buss director 198 CHAMPION COURT, SAN JOSE CA 95134
Chuan-sheng Chiao officer: President, Asia Pacific C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
John C. Vollmer officer: Group President, MS C/O AECOM, 1999 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90067