GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » AMETEK Inc (NYSE:AME) » Definitions » Degree of Operating Leverage

AME (AMETEK) Degree of Operating Leverage : 2.09 (As of Mar. 2025)


View and export this data going back to 1930. Start your Free Trial

What is AMETEK Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. AMETEK's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.09. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AME's Degree of Operating Leverage is ranked worse than
63.4% of 2937 companies
in the Industrial Products industry
Industry Median: 1.09 vs AME: 2.09

AMETEK Degree of Operating Leverage Historical Data

The historical data trend for AMETEK'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.

AMETEK Degree of Operating Leverage Chart

AMETEK 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 -0.07 0.52 1.47 1.61 0.98

AMETEK 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 1.34 1.31 0.95 0.98 2.09

Competitive Comparison of AMETEK's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, AMETEK'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.


AMETEK's Degree of Operating Leverage Distribution in the Industrial Products Industry

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

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


;
;

AMETEK Degree of Operating Leverage Calculation

AMETEK'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
=( 1811.133 (Mar. 2025) / 1704.622 (Mar. 2024) - 1 )/( 6936.971 (Mar. 2025) / 6736.013 (Mar. 2024) - 1 )
=0.0625/0.0298
=2.09***

* 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.


AMETEK  (NYSE:AME) 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.


AMETEK Degree of Operating Leverage Related Terms

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


AMETEK Business Description

Address
1100 Cassatt Road, Berwyn, PA, USA, 19312-1177
Founded in 1930 and transformed over the decades through the acquisition of dozens of esteemed brands, Ametek owns a collection of over 40 autonomous industrial businesses operating within the research, aerospace, energy, medical, and manufacturing industries. Ametek segments its business into two operating groups: the electronic instruments group and the electromechanical group. The EIG sells a broad portfolio of analytical, test, and measurement instruments, while the EMG sells highly engineered components, interconnects, and specialty metals. The company emphasizes product differentiation and market leadership in the niche markets where it operates.
Executives
Thomas A Amato director 38505 WOODWARD AVENUE, SUITE 200, BLOOMFIELD HILLS MI 48304
Steven W Kohlhagen director AMETEK, INC., 1100 CASSATT ROAD, BERWYN PA 19312
Emanuela Speranza officer: CHIEF COMMERCIAL OFFICER 1100 CASSATT ROAD, BERWYN PA 19312
David A Zapico officer: Pres. - Electronic Instruments AMETEK, INC., 1100 CASSATT ROAD, BERWYN PA 19312
Tony J Ciampitti officer: PRES. - ELECTRONIC INSTRUMENTS 1100 CASSATT ROAD, BERWYN PA 19312
John Wesley Hardin officer: PRES. - ELECTRONIC INSTRUMENTS AMETEK,INC., 1100 CASSATT ROAD, BERWYN PA 19312
David F. Hermance officer: PRESIDENT - ELECTROMECHANICAL 1100 CASSATT ROAD, BERWYN PA 19312
William Joseph Burke officer: SR. VP-Comptroller & Treasurer AMETEK, INC., 1100 CASSATT ROAD, BERWYN PA 19312
Thomas M Montgomery officer: SR. VP. - COMPTROLLER AMETEK, INC., 1100 CASSATT ROAD, BERWYN PA 19312
Thomas C Marecic officer: PRES. - ELECTRONIC INSTRUMENTS AMETEK, INC., 1100 CASSATT ROAD, BERWYN PA 19312
Ronald J Oscher officer: PRES. - ELECTRONIC INSTRUMENTS AMETEK, INC., 1100 CASSATT ROAD, BERWYN PA 19312
Anthony James Conti director 76 GOLFVIEW DRIVE, IVYLAND PA 18974
Gretchen W Mcclain director XYLEM INC., 1133 WESTCHESTER AVENUE, SUITE N200, WHITE PLAINS NY 10604
Suzanne Stefany director JELD-WEN HOLDING, INC., 440 S. CHURCH STREET, SUITE 400, CHARLOTTE NC 28202
Dean Seavers director 70 SUFFOLK ROAD, CHESTNUT HILL MA 02467