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ASIX (AdvanSix) Degree of Operating Leverage : 154.19 (As of Mar. 2025)


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What is AdvanSix Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. AdvanSix's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 154.19. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ASIX's Degree of Operating Leverage is ranked worse than
98.03% of 1521 companies
in the Chemicals industry
Industry Median: 1.01 vs ASIX: 154.19

AdvanSix Degree of Operating Leverage Historical Data

The historical data trend for AdvanSix'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.

AdvanSix Degree of Operating Leverage Chart

AdvanSix 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 -0.55 4.46 1.30 3.14 24.70

AdvanSix 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 4.44 6.83 -53.44 24.70 154.19

Competitive Comparison of AdvanSix's Degree of Operating Leverage

For the Chemicals subindustry, AdvanSix'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.


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

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

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


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AdvanSix Degree of Operating Leverage Calculation

AdvanSix'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
=( 108.074 (Mar. 2025) / 10.495 (Mar. 2024) - 1 )/( 1558.519 (Mar. 2025) / 1469.884 (Mar. 2024) - 1 )
=9.2977/0.0603
=154.19***

* 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.


AdvanSix  (NYSE:ASIX) 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.


AdvanSix Degree of Operating Leverage Related Terms

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


AdvanSix Business Description

Industry
Traded in Other Exchanges
Address
300 Kimball Drive, Suite 101, Parsippany, NJ, USA, 07054
AdvanSix Inc. is a diversified chemistry company playing a critical role in globally supply chains, innovating and delivering essential products for customers in a wide variety of end markets and applications that touch people's lives, such as building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives and electronics. The company key products includes: Nylon, Caprolactam, Plant Nutrients, and Chemical Intermediates The majority of sales is from Plant Nutrients products.
Executives
Achilles B. Kintiroglou officer: SVP, General Counsel 300 KIMBALL DRIVE, SUITE 101, PARSIPPANY NJ 07054
Erin N Kane director, officer: Chief Executive Officer 300 KIMBALL DRIVE, SUITE 101, PARSIPPANY NJ 07054
Christopher Gramm officer: Controller 300 KIMBALL DRIVE, SUITE 101, C/O LEGAL DEPT., PARSIPPANY NJ 07054
Michael Marberry director 3050 SPRUCE STREET, ST. LOUIS MO 63103
Farha Aslam director 1770 N PROMOTORY CIRCLE, GREELEY CO 80634
Gena C Lovett director 11324 FOX CREEK FARM WAY, GREAT FALLS VA 22066
Willem L. Blindenbach officer: VP, Integrated Supply Chain 300 KIMBALL DRIVE, SUITE 101, PARSIPPANY NJ 07054
Kelly Slieter officer: SVP, Chief HR Officer 300 KIMBALL DRIVE, SUITE 101, PARSIPPANY NY 07054
Todd D. Karran director 300 KIMBALL DRIVE, SUITE 101, C/O LEGAL DEPT., PARSIPPANY NJ 07054
Sharon Spurlin director 333 CLAY ST, SUITE 1600, HOUSTON TX 77002
Patrick Williams director 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112
Daniel F Sansone director VULCAN MATERIALS COMPANY, 1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Michael Preston officer: SVP & Chief Financial Officer 300 KIMBALL DRIVE, SUITE 101, C/O LEGAL DEPT., PARSIPPANY NJ 07054
Jonathan Bellamy officer: SVP & Chief HR Officer 300 KIMBALL DRIVE, SUITE 101, C/O LEGAL DEPT., PARSIPPANY NJ 07054
John M Quitmeyer officer: SVP, Gen Counsel & Corp Secy 300 KIMBALL DRIVE, SUITE 101, C/O LEGAL DEPT., PARSIPPANY NJ 07054