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ASH (Ashland) Degree of Operating Leverage : 34.92 (As of Mar. 2025)


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What is Ashland Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ashland's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 34.92. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ASH's Degree of Operating Leverage is ranked worse than
93.04% of 1523 companies
in the Chemicals industry
Industry Median: 1.02 vs ASH: 34.92

Ashland Degree of Operating Leverage Historical Data

The historical data trend for Ashland'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.

Ashland Degree of Operating Leverage Chart

Ashland Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 92.37 -29.99 2.41 2.13 25.74

Ashland 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 5.61 12.92 25.74 47.86 34.92

Competitive Comparison of Ashland's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Ashland'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.


Ashland's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ashland's Degree of Operating Leverage distribution charts can be found below:

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


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Ashland Degree of Operating Leverage Calculation

Ashland'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
=( -163 (Mar. 2025) / 98 (Mar. 2024) - 1 )/( 1950 (Mar. 2025) / 2111 (Mar. 2024) - 1 )
=-2.6633/-0.0763
=34.92***

* 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.


Ashland  (NYSE:ASH) 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.


Ashland Degree of Operating Leverage Related Terms

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


Ashland Business Description

Industry
Traded in Other Exchanges
Address
8145 Blazer Drive, Wilmington, DE, USA, 19808
Ashland Inc is a world-wide specialty materials company that serves a wide range of industrial markets. The company has a business-centric operating model and is organized into four distinct segments: life sciences, personal care, specialty additives, and intermediates. Key customers for the firm include pharmaceutical companies and manufacturers of personal care products, food and beverages, and nutraceuticals and supplements. The life sciences segment derives maximum revenue. The company generates its sales from North America, Europe, Asia Pacific, and Latin America, and Others.
Executives
Guillermo Novo director, officer: Chairman and CEO AIR PRODUCTS AND CHEMICALS, INC., 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Eric N Boni officer: Principal Accounting Officer 8145 BLAZER DRIVE, WILMINGTON DE 19808
Robin E. Lampkin officer: SVP, Gen. Counsel & Secretary 5475 RINGS ROAD, NORTH TOWER, 5TH FLOOR, DUBLIN OH 43017
J Kevin Willis officer: Chief Financial Officer 50 E RIVERCENTER BLVD, COVINGTON KY 41011
James P. Minicucci officer: SVP Strategy, M&A & Portfolio 5474 RINGS ROAD, NORTH TOWER, 5TH FLOOR, DUBLIN OH 43017
Karl R. Bostaph officer: SVP Operations 5474 RINGS ROAD, NORTH TOWER, 5TH FLOOR, DUBLIN OH 43017
Sergio Pedreiro director 2 PARK AVENUE, NEW YORK NY 10016
Eileen Drury officer: SVP and Chief Human Resources 8145 BLAZER DRIVE, WILMINGTON DE 19808
Ricky C Sandler director, other: See Remarks 65 EAST 55TH STREET, 25TH FLOOR, NEW YORK NY 10022
Steven D Bishop director ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Suzan F. Harrison director 77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Winkler Von Mohrenfels Petra Yvonne officer: Sr. VP, GC and Secretary 8145 BLAZER DRIVE, WILMINGTON DE 19808
Min Chong officer: Sr VP & Gen Mgr, Spc Additives 8145 BLAZER DRIVE, WILMINGTON DE 19808
Osama M Musa officer: Sr. Vice President ASHLAND GLOBAL HOLDINGS INC, 1005 ROUTE 202/206, BRIDGEWATER NJ 08807
Swaminathan Ashok Kalyana officer: Sr VP & Gen Mgr, Life Sciences 8145 BLAZER DRIVE, WILMINGTON DE 19808