GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Empresa Metropolitana de Aguas & Energia SA (BSP:EMAE3) » Definitions » Degree of Operating Leverage

Empresa Metropolitana de Aguas & Energia (BSP:EMAE3) Degree of Operating Leverage : 188.93 (As of Mar. 2025)


View and export this data going back to 2007. Start your Free Trial

What is Empresa Metropolitana de Aguas & Energia Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Empresa Metropolitana de Aguas & Energia's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 188.93. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Empresa Metropolitana de Aguas & Energia's Degree of Operating Leverage or its related term are showing as below:

BSP:EMAE3's Degree of Operating Leverage is ranked worse than
99.18% of 486 companies
in the Utilities - Regulated industry
Industry Median: 0.77 vs BSP:EMAE3: 188.93

Empresa Metropolitana de Aguas & Energia Degree of Operating Leverage Historical Data

The historical data trend for Empresa Metropolitana de Aguas & Energia'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.

Empresa Metropolitana de Aguas & Energia Degree of Operating Leverage Chart

Empresa Metropolitana de Aguas & Energia 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 106.82 -1.63 -117.35 7.77 -22.23

Empresa Metropolitana de Aguas & Energia 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 9.58 17.49 32.97 -22.23 188.93

Competitive Comparison of Empresa Metropolitana de Aguas & Energia's Degree of Operating Leverage

For the Utilities - Diversified subindustry, Empresa Metropolitana de Aguas & Energia'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.


Empresa Metropolitana de Aguas & Energia's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Empresa Metropolitana de Aguas & Energia's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Empresa Metropolitana de Aguas & Energia's Degree of Operating Leverage falls into.


;
;

Empresa Metropolitana de Aguas & Energia Degree of Operating Leverage Calculation

Empresa Metropolitana de Aguas & Energia'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
=( 70.684 (Mar. 2025) / 164.299 (Mar. 2024) - 1 )/( 616.863 (Mar. 2025) / 618.729 (Mar. 2024) - 1 )
=-0.5698/-0.003
=188.93***

* 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.


Empresa Metropolitana de Aguas & Energia  (BSP:EMAE3) 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.


Empresa Metropolitana de Aguas & Energia Degree of Operating Leverage Related Terms

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


Empresa Metropolitana de Aguas & Energia Business Description

Traded in Other Exchanges
Address
Avenida Jornalista Roberto Marinho, No. 85, 16th Floor 17 andares, Bairro de Cidade Moncoes, Sao Paulo, SP, BRA, 04576-010
Empresa Metropolitana de Aguas & Energia SA is engaged in electricity generation. The company manages a complex hydraulic system that includes dykes, dams, and reservoirs, with notable ones being Billings and Guarapiranga, located in the southern zone of Sao Paulo city, as well as the Sao Paulo and Pedreira pumping stations and the Pinheiros River canal. The company's activities include electricity supply, the construction of energy generation assets, and the provision of operation and maintenance services for power plants and related structures, serving both private companies and public sector entities.

Empresa Metropolitana de Aguas & Energia Headlines

No Headlines