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AMPS (Altus Power) Degree of Operating Leverage : 9.42 (As of Dec. 2024)


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What is Altus Power Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Altus Power's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 9.42. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AMPS's Degree of Operating Leverage is ranked worse than
90.05% of 402 companies
in the Utilities - Independent Power Producers industry
Industry Median: 0.61 vs AMPS: 9.42

Altus Power Degree of Operating Leverage Historical Data

The historical data trend for Altus Power'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.

Altus Power Degree of Operating Leverage Chart

Altus Power Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 2.92 3.10 -1.36 9.42

Altus Power Quarterly Data
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 -1.36 0.08 8.35 -1.97 9.42

Competitive Comparison of Altus Power's Degree of Operating Leverage

For the Utilities - Renewable subindustry, Altus Power'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.


Altus Power's Degree of Operating Leverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Altus Power's Degree of Operating Leverage distribution charts can be found below:

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


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Altus Power Degree of Operating Leverage Calculation

Altus Power'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
=( 72.783 (Dec. 2024) / 20.83 (Dec. 2023) - 1 )/( 196.265 (Dec. 2024) / 155.162 (Dec. 2023) - 1 )
=2.4941/0.2649
=9.42***

* 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.


Altus Power  (NYSE:AMPS) 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.


Altus Power Degree of Operating Leverage Related Terms

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


Altus Power Business Description

Traded in Other Exchanges
N/A
Address
2200 Atlantic Street, 6th Floor, Stamford, CT, USA, 06902
Altus Power Inc is a developer, owner, and operator of large-scale photovoltaic and energy storage systems across the United States. The company serves commercial, industrial, public sector, and community solar customers. Its mission is to drive the clean energy transition by developing and operating solar generation and energy storage facilities. It owns a diverse portfolio of solar PV systems and has long-term agreements with enterprise entities and residential customers. Its primary product offerings include leases and revenue contracts for solar power generation, alongside electric vehicle charging and energy storage solutions. Revenue streams include power purchase agreements, net metering credit agreements, and SREC revenue.
Executives
Anthony Savino officer: See Remarks 2200 ATLANTIC STREET, 6TH FLOOR, STAMFORD CT 06902
Dustin Weber officer: See Remarks 2200 ATLANTIC STREET, 6TH FLOOR, STAMFORD CT 06902
Gregg J Felton director, officer: See Remarks C/O FULL CIRCLE CAPITAL CORPORATION, 800 WESTCHESTER AVE., RYE BROOK NY 10573
Lars Norell director, officer: See Remarks 12 EGGLESTON LANE, OLD GREENWICH CT 06870
Gso Altus Holdings Lp 10 percent owner 345 PARK AVENUE, 30TH FLOOR, NEW YORK NY 10154
William F Concannon director, officer: Chief Executive Officer 200 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10166
Diane D Brink director C/O BELDEN INC., 1 N. BRENTWOOD BLVD., 15TH FLOOR, SAINT LOUIS MO 63105
Valueact Capital Management, Llc director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Gso Altus Holdings Associates Llc 10 percent owner 345 PARK AVENUE, 30TH FLOOR, NEW YORK NY 10154
Sharon Daley director 2200 ATLANTIC STREET, 6TH FLOOR, STAMFORD CT 06902
Cbre Acquisition Sponsor, Llc director, 10 percent owner 2100 MCKENNEY AVENUE, 12TH FLOOR, DALLAS TX 75201
Robert M Horn director C/O GSO CAPITAL PARTNERS LP, 345 PARK AVE., NEW YORK NY 10154
Cbre Group, Inc. director, 10 percent owner 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Cbre Services, Inc. director, 10 percent owner C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Christine Rose Detrick director 200 CLARENDON STREET, T-9, BOSTON MA 02116