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ASTE (Astec Industries) Degree of Operating Leverage : -2.11 (As of Mar. 2025)


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What is Astec Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Astec Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ASTE's Degree of Operating Leverage is ranked better than
82.04% of 206 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.405 vs ASTE: -2.11

Astec Industries Degree of Operating Leverage Historical Data

The historical data trend for Astec Industries'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.

Astec Industries Degree of Operating Leverage Chart

Astec Industries 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 -5.63 -9.66 -3.29 129.91 21.19

Astec Industries 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 -43.25 14.27 13.85 21.19 -2.11

Competitive Comparison of Astec Industries's Degree of Operating Leverage

For the Farm & Heavy Construction Machinery subindustry, Astec Industries'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.


Astec Industries's Degree of Operating Leverage Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Astec Industries's Degree of Operating Leverage distribution charts can be found below:

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


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Astec Industries Degree of Operating Leverage Calculation

Astec Industries'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
=( 38.9 (Mar. 2025) / 40.6 (Mar. 2024) - 1 )/( 1325.3 (Mar. 2025) / 1299.5 (Mar. 2024) - 1 )
=-0.0419/0.0199
=-2.11***

* 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.


Astec Industries  (NAS:ASTE) 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.


Astec Industries Degree of Operating Leverage Related Terms

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


Astec Industries Business Description

Traded in Other Exchanges
Address
1725 Shepherd Road, Chattanooga, TN, USA, 37421
Astec Industries Inc designs and manufactures equipment and components used in road construction and other development activities. Its products are used through the entire process of building roads, from mining and crushing materials to creating the road surface. The company manufactures a line of plants, pavers, vehicles, and machines to mix and transform materials into construction components. It has two operating segments: infrastructure solutions generating maximum revenue and materials solutions. The majority of sales are derived from the United States. Its customers are asphalt producers, highway and heavy equipment contractors, ready mix concrete producers, demolition recycling markets, sand and gravel producers, open mine operators, quarry operators, and others.
Executives
Merwe Jaco Van Der officer: Group President 1725 SHEPHERD RD, CHATTANOOGA TN 37421
Winford James Murphy Jr director 213 NORMANDIE DRIVE, OPELOUSAS LA 70570
Barend Snyman officer: Group President 3906 LOBLOLLY LANE, VALDOSTA GA 31601
Nalin Jain director 30 ISABELLA ST., PITTSBURGH PA 15212
Westinghouse Air Brake Technologies Corp director 30 ISABELLA STREET, PITTSBURGH PA 15212
Mark Joseph Gliebe director 200 STATE STREET, BELOIT WI 53511
Linda I. Knoll director 5800 KNOB HILL CR, CLARKSON TN 48348
Litchfield Matthew T Sr officer: Chief Information Officer 1725 SHEPHERD RD, CHATTANOOGA TN 37421
Anshu Pasricha officer: GC and Corp Secretary 1725 SHEPHERD ROAD, CHATTANOOGA TN 37421
Timothy A Averkamp officer: Group President 1725 SHEPHERD RD, CHATTANOOGA TN 37421
Mary L Howell director 1101 PENNSYLVANIA AVE STE 400, WASHINGTON DC 20004
James B Baker director 1725 SHEPHERD ROAD, CHATTANOOGA TN 37421
William Bradley Southern director 1610 WEST END AVENUE, NASHVILLE TN 37203
Tracey H Cook director 1725 SHEPHERD RD, CHATTANOOGA TN 37421
William Glenwood Dorey director PO BOX 50085, WATSONVILLE CA 95077-5085