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BMI (Badger Meter) Degree of Operating Leverage : 2.11 (As of Mar. 2025)


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What is Badger Meter Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Badger Meter'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 Badger Meter's Degree of Operating Leverage or its related term are showing as below:

BMI's Degree of Operating Leverage is ranked worse than
64.29% of 2414 companies
in the Hardware industry
Industry Median: 1 vs BMI: 2.11

Badger Meter Degree of Operating Leverage Historical Data

The historical data trend for Badger Meter'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.

Badger Meter Degree of Operating Leverage Chart

Badger Meter 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 22.36 1.11 0.91 1.44 1.93

Badger Meter 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 1.54 1.68 1.93 1.93 2.11

Competitive Comparison of Badger Meter's Degree of Operating Leverage

For the Scientific & Technical Instruments subindustry, Badger Meter'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.


Badger Meter's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Badger Meter's Degree of Operating Leverage distribution charts can be found below:

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


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Badger Meter Degree of Operating Leverage Calculation

Badger Meter'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
=( 170.783 (Mar. 2025) / 129.581 (Mar. 2024) - 1 )/( 852.489 (Mar. 2025) / 740.771 (Mar. 2024) - 1 )
=0.318/0.1508
=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.


Badger Meter  (NYSE:BMI) 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.


Badger Meter Degree of Operating Leverage Related Terms

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


Badger Meter Business Description

Industry
Traded in Other Exchanges
Address
4545 West Brown Deer Road, Milwaukee, WI, USA, 53233
Badger Meter Inc is an innovator, manufacturer, and marketer of products incorporating flow measurement, quality, control, and other system solutions serving markets. The company's products measure water, oil, chemicals, and other fluids, and provide and communicate timely measurement data. Its product lines include two categories: sales of water meters, radios, software, and related technologies, and water quality monitoring solutions to water utilities (utility water) and sales of meters and other sensing instruments, valves, software, and other solutions for industrial applications in water, wastewater, and other industries (flow instrumentation). It derives a majority of its revenues from the United States.
Executives
Karen M. Bauer officer: VP-IR, Strategy & Treasurer 4545 W. BROWN DEER ROAD, MILWAUKEE WI 53223
Kimberly K Stoll officer: VP-Marketing 4545 W BROWN DEER ROAD, MILWAUKEE WI 53223
Bergum William R A officer: VP-Gen. Counsel and Secretary P O BOX 245036, 4545 W BROWN DEER RD, MILWAUKEE WI 53223
Fred J Begale officer: VP-Engineering 4545 W BROWN DEER ROAD, MILWAUKEE WI 53223
Kenneth Bockhorst officer: Senior VP/COO C/O ACTUANT CORPORATION, N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Todd A. Adams director 4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214
Richard Htwe officer: VP-Global Operations 4545 W. BROWN DEER ROAD, MILWAUKEE WI 53223
Lars Bo Kristensen officer: VP-Global Flow and Intl Water 4545 W. BROWN DEER ROAD, MILWAUKEE WI 53223
Xia Liu director ONE ENERGY PLACE, PENSACOLA FL 32520
Gregory M Gomez officer: VP-Engineering 4545 W BROWN DEER RD, MILWAUKEE WI 53223
Melanie K. Cook director 4545 W. BROWN DEER ROAD, P.O. BOX 245036, MILWAUKEE WI 53224
Matthew L Stuyvenberg officer: Vice President-Water Quality 4545 W BROWN DEER ROAD, P.O. BOX 245036, MILWAUKEE WI 53224
Henry F Brooks director 4545 W. BROWN DEER ROAD, P.O. BOX 245036, MILWAUKEE WI 53224-9536
Gail A Lione director C/O HARLEY DAVIDSON, 3700 W. JUNEAU AVE, MILWAUKEE WI 53208
Sheryl Hopkins officer: VP - Human Resources 4545 W. BROWN DEER ROAD, P.O. BOX 245036, MILWAUKEE WI 53224-9536