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AES (The AES) Degree of Operating Leverage : -13.07 (As of Mar. 2025)


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What is The AES Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. The AES's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -13.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AES's Degree of Operating Leverage is ranked better than
93.03% of 488 companies
in the Utilities - Regulated industry
Industry Median: 0.83 vs AES: -13.07

The AES Degree of Operating Leverage Historical Data

The historical data trend for The AES'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.

The AES Degree of Operating Leverage Chart

The AES 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 4.93 -7.18 -54.32 123.96 -21.82

The AES 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 -11.46 -4.96 -9.20 -21.82 -13.07

Competitive Comparison of The AES's Degree of Operating Leverage

For the Utilities - Diversified subindustry, The AES'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.


The AES's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, The AES's Degree of Operating Leverage distribution charts can be found below:

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


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The AES Degree of Operating Leverage Calculation

The AES'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
=( 2065 (Mar. 2025) / 1462 (Mar. 2024) - 1 )/( 12119 (Mar. 2025) / 12514 (Mar. 2024) - 1 )
=0.4124/-0.0316
=-13.07***

* 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.


The AES  (NYSE:AES) 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.


The AES Degree of Operating Leverage Related Terms

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


The AES Business Description

Address
4300 Wilson Boulevard, 11th Floor, Arlington, VA, USA, 22203
AES is a global power company that operates in 15 countries. Its generation portfolio as of year-end 2024 totals over 32 gigawatts, including renewable energy (50%), gas (32%), coal (16%), and oil (2%). AES has majority ownership and operates six electric utilities distributing power to more than 2.5 million customers.
Executives
Sherry Kohan officer: Vice President & Controller 4300 WILSON BLVD., ARLINGTON VA 22203
Tish Mendoza officer: Sr. VP & Chief HR Officer 4300 WILSON BOULEVARD, ARLINGTON VA 22203
Santos Bernerd Da officer: Sr. VP and COO 4300 WILSON BOULEVARD, ARLINGTON VA 22203
Ricardo Manuel Falu officer: SVP & Chief Operating Officer 4300 WILSON BLVD, ARLINGTON VA 22203
Juan Ignacio Rubiolo officer: VP, MCAC SBU President 4300 WILSON BLVD., ARLINGTON VA 22203
Paul L Freedman officer: SVP and General Counsel 4300 WILSON BLVD, ARLINGTON VA 22203
Stephen Coughlin officer: EVP and CFO 4300 WILSON BLVD., 11TH FLOOR, ARLINGTON VA 22203
Andres Gluski officer: Executive VP & COO 4300 WILSON BOULEVARD, ARLINGTON VA 22203
Alain Monie director WORLDWIDE LEGAL DEPT 1600 E ST, SANTA ANA CA 92705
Julia M. Laulis director 210 E. EARLL DRIVE, PHOENIX AZ 85012
Maura Shaughnessy director 4300 WILSON BLVD., ARLINGTON VA 22203
Gerard M Anderson director ONE ENERGY PLAZA, LEGAL DEPARTMENT, DETROIT MI 48226
James H Miller director C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067
Teresa Mosley Sebastian director 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Jeffrey W Ubben director, other: See Remarks 1170 GORGAS AVENUE, SAN FRANCISCO CA 94129