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ARLP (Alliance Resource Partners LP) Degree of Operating Leverage : 5.66 (As of Mar. 2025)


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What is Alliance Resource Partners LP Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Alliance Resource Partners LP's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.66. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Alliance Resource Partners LP's Degree of Operating Leverage or its related term are showing as below:

ARLP's Degree of Operating Leverage is ranked worse than
86.18% of 123 companies
in the Other Energy Sources industry
Industry Median: 1.06 vs ARLP: 5.66

Alliance Resource Partners LP Degree of Operating Leverage Historical Data

The historical data trend for Alliance Resource Partners LP'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.

Alliance Resource Partners LP Degree of Operating Leverage Chart

Alliance Resource Partners LP 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 3.67 -19.43 3.84 0.03 8.43

Alliance Resource Partners LP 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 7.95 5.63 5.81 8.43 5.66

Competitive Comparison of Alliance Resource Partners LP's Degree of Operating Leverage

For the Thermal Coal subindustry, Alliance Resource Partners LP'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.


Alliance Resource Partners LP's Degree of Operating Leverage Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, Alliance Resource Partners LP's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Alliance Resource Partners LP's Degree of Operating Leverage falls into.


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Alliance Resource Partners LP Degree of Operating Leverage Calculation

Alliance Resource Partners LP'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
=( 332.634 (Mar. 2025) / 643.211 (Mar. 2024) - 1 )/( 2337.479 (Mar. 2025) / 2555.476 (Mar. 2024) - 1 )
=-0.4829/-0.0853
=5.66***

* 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.


Alliance Resource Partners LP  (NAS:ARLP) 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.


Alliance Resource Partners LP Degree of Operating Leverage Related Terms

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


Alliance Resource Partners LP Business Description

Traded in Other Exchanges
N/A
Address
1717 South Boulder Avenue, Suite 400, Tulsa, OK, USA, 74119
Alliance Resource Partners LP operates as a coal mining company based in the United States. It has four segments: Illinois Basin, Appalachia, Oil & Gas Royalties and Coal Royalties. The Illinois Basin comprises underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia. The Appalachia segment comprises the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining complex. The Oil & Gas Royalties has oil & gas mineral interests held by AR Midland and AllDale I & II and includes Alliance Minerals' equity interests in both AllDale III and Cavalier Minerals. The Coal Royalties has included coal mineral reserves and resources owned or leased by Alliance Resource Properties.
Executives
Timothy J Whelan officer: Senior Vice President Sales 1717 SOUTH BOULDER AVENUE, SUITE 400, TULSA OK 74119
Kathleen S. Craft 10 percent owner 2502 E. 45TH ST., TULSA OK 74105
Craft Joseph W Iii director, 10 percent owner, officer: President and Chief Executive PO BOX 22027, TULSA OK 74121-2027
D Andrew Woodward officer: Senior VP, New Ventures C/O ANDX, FINDLAY OH 45840
Megan J Cordle officer: VP, Controller and CAO P.O. BOX 22027, TULSA OK 74121
John H Robinson director 1 WATERHOUSE SQU, 5TH FL. 138-142 HOLBORN, LONDON X0 EC1N 2ST
Robert J Fouch officer: Vice President and Controller 1717 S. BOULDER, SUITE 400, TULSA OK 74119
Kirk Tholen officer: Sr VP, Chief Strategic Officer 1717 SOUTH BOULDER, SUITE 400, TULSA OK 74119
Robert J Druten director 6503 SENECA ROAD, MISSION HILLS KS 66208
Wilson M Torrence director 1717 SOUTH BOULDER, SUITE 400, TULSA OK 74119
Nick Carter director
John P Neafsey director PO BOX 22027, C/O ALLIANCE RESOURCE PARTNERS LP, TULSA OK 74121
Alliance Resource Management Gp, Llc 10 percent owner 1717 SOUTH BOULDER AVENUE, SUITE 400, TULSA OK 74119
Alliance Holdings Gp, L.p. director, 10 percent owner P.O. BOX 22027, TULSA OK 74121
Mgp Ii, Llc director, 10 percent owner 1717 SOUTH BOULDER AVENUE, SUITE 400, TULSA OK 74119