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AMR (Alpha Metallurgical Resources) Degree of Operating Leverage : 4.11 (As of Mar. 2025)


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What is Alpha Metallurgical Resources Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Alpha Metallurgical Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AMR's Degree of Operating Leverage is ranked worse than
69.88% of 601 companies
in the Steel industry
Industry Median: 1.17 vs AMR: 4.11

Alpha Metallurgical Resources Degree of Operating Leverage Historical Data

The historical data trend for Alpha Metallurgical Resources'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.

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Alpha Metallurgical Resources Degree of Operating Leverage Chart

Alpha Metallurgical Resources 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 0.60 -5.28 4.11 2.99 5.05

Alpha Metallurgical Resources 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 4.02 17.70 49.49 5.05 4.11

Competitive Comparison of Alpha Metallurgical Resources's Degree of Operating Leverage

For the Coking Coal subindustry, Alpha Metallurgical Resources'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.


Alpha Metallurgical Resources's Degree of Operating Leverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Alpha Metallurgical Resources's Degree of Operating Leverage distribution charts can be found below:

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


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Alpha Metallurgical Resources Degree of Operating Leverage Calculation

Alpha Metallurgical Resources'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
=( 27.694 (Mar. 2025) / 679.726 (Mar. 2024) - 1 )/( 2625.17 (Mar. 2025) / 3424.254 (Mar. 2024) - 1 )
=-0.9593/-0.2334
=4.11***

* 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.


Alpha Metallurgical Resources  (NYSE:AMR) 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.


Alpha Metallurgical Resources Degree of Operating Leverage Related Terms

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


Alpha Metallurgical Resources Business Description

Traded in Other Exchanges
N/A
Address
340 Martin Luther King Jr. Boulevard, Bristol, TN, USA, 37620
Alpha Metallurgical Resources Inc is a Tennessee-based coal mining company with operations across Virginia and West Virginia. The company's portfolio of mining operations consists of underground mines, surface mines, and coal preparation plants. It produces low-ash metallurgical coal, including High-Vol. A, Mid-Vol., High-Vol. B, and Low-Vol. coal, which is shipped to domestic and international coke and steel producers. The reportable segment of the company is Met. It extracts, processes and markets met and thermal coal from deep and surface mines for sale to steel and coke producers, industrial customers, and electric utilities.
Executives
Kenneth S. Courtis director 1101 1 MAY TOWER, 7 MAY ROAD, MID-LEVELS K3 #######
Roger Lee Nicholson officer: EVP, Gen. Counsel & Secretary C/O CONTURA ENERGY, INC., 340 MARTIN LUTHER KING JR. BLVD., BRISTOL TN 37620
Michael Gorzynski director, other: See Remarks 595 MADISON AVE, FLOOR 29, NEW YORK NY 10022
Jason E. Whitehead officer: Chief Operating Officer C/O CONTURA ENERGY, INC., 340 MARTIN LUTHER KING JR. BLVD., BRISTOL TN 37620
David J. Stetson director C/O CONTURA ENERGY, INC., 340 MARTIN LUTHER KING JR. BLVD., BRISTOL TN 37620
Daniel D Smith director C/O NORFOLK SOUTHERN CORP, THREE COMMERCIAL PL, NORFOLK VA 23510-9219
Charles Andrew Eidson officer: Chief Financial Officer ONE ALPHA PLACE, P.O. BOX 16429, BRISTOL VA 24209
Daniel E. Horn officer: Executive Vice President-Sales C/O CONTURA ENERGY, INC., 340 MARTIN LUTHER KING JR. BLVD., BRISTOL TN 37620
Baker De Neufville Joanna director 340 MARTIN LUTHER KING JR BLVD, BRISTOL TN 37620
Mg Capital Management Ltd. other: See Remarks C/O CAMPBELLS LLP, FLOOR 4, WILLOW HOUSE, CRICKET SQUARE, GRAND CAYMAN E9 KY1-9010
Percy Rockdale Llc other: See Remarks 595 MADISON AVENUE, 29TH FLOOR, NEW YORK NY 10022
Continental Insurance Group, Ltd. other: See Remarks 11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Continental General Insurance Co other: See Remarks 11001 LAKELINE BLVD., STE. 120, AUSTIN TX 78717
Joshua Todd Munsey officer: Chief Financial Officer 340 MARTIN LUTHER KING BOULEVARD, BRISTOL TN 37620
Elizabeth Anne Fessenden director 1137 WEST AVENUE, RICHMOND VA 23220