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BW (Babcock & Wilcox Enterprises) Degree of Operating Leverage : -11.12 (As of Mar. 2025)


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What is Babcock & Wilcox Enterprises Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Babcock & Wilcox Enterprises's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -11.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Babcock & Wilcox Enterprises's Degree of Operating Leverage or its related term are showing as below:

BW's Degree of Operating Leverage is ranked better than
91.42% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs BW: -11.12

Babcock & Wilcox Enterprises Degree of Operating Leverage Historical Data

The historical data trend for Babcock & Wilcox Enterprises'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.

Babcock & Wilcox Enterprises Degree of Operating Leverage Chart

Babcock & Wilcox Enterprises 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 4.40 2.34 4.50 -11.70 6.16

Babcock & Wilcox Enterprises 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 56.10 4.27 3.29 6.16 -11.12

Competitive Comparison of Babcock & Wilcox Enterprises's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Babcock & Wilcox Enterprises'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.


Babcock & Wilcox Enterprises's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Babcock & Wilcox Enterprises's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Babcock & Wilcox Enterprises's Degree of Operating Leverage falls into.


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Babcock & Wilcox Enterprises Degree of Operating Leverage Calculation

Babcock & Wilcox Enterprises'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
=( -7.25 (Mar. 2025) / -23.739 (Mar. 2024) - 1 )/( 690.971 (Mar. 2025) / 650.345 (Mar. 2024) - 1 )
=-0.6946/0.0625
=-11.12***

* 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.


Babcock & Wilcox Enterprises  (NYSE:BW) 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.


Babcock & Wilcox Enterprises Degree of Operating Leverage Related Terms

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


Babcock & Wilcox Enterprises Business Description

Traded in Other Exchanges
Address
1200 East Market Street, Suite 650, Akron, OH, USA, 44305
Babcock & Wilcox Enterprises Inc is a power generation equipment supplier and servicing company that operates in three segments: B&W Renewable, B&W Environmental, and B&W Thermal. B&W Thermal, focuses on steam generation products and solutions for plants in the power generation, oil, and gas, and industrial sectors, generates the majority of the company's revenue. B&W Renewable focuses on sustainable power and heat generation while B&W Environmental focuses on emissions control. The company's customer base spans the industrial, electrical utility, and municipal industries located predominantly in the United States, Canada, Denmark, the United Kingdom, and other regions. Business in the U.S. contributes the vast majority of its revenue.
Executives
Louis Jr Salamone officer: Chief Financial Officer 7925 JONES BRANCH DRIVE, MCLEAN VA 22102
John J Dziewisz officer: SVP & Corp. Secy. 1200 E. MARKET STREET, SUITE 650, SUITE 650, AKRON OH 44305
Philip D Moeller director 2306 CHAIN BRIDGE ROAD, NW, WASHINGTON DC 20016
Kenneth M Young officer: Chief Executive Officer C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD., SUITE 400, WOODLAND HILLS CA 91367
Joseph A Tato director 580 INDIAN HARBOR ROAD, VERO BEACH FL 32963
Henry E Bartoli director, officer: Chief Strategy Officer 1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Christopher S Riker officer: Senior Vice President 1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
B. Riley Financial, Inc. 10 percent owner 11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025
Alan B Howe director 1155 KAS DRIVE SUITE 100, RICHARDSON TX 75081
Joseph T Buckler officer: Senior Vice President 1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Jimmy B Morgan officer: SVP, Babcock & Wilcox 1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Rebecca L Stahl director 2106 SOUTH BAY LANE, RESTON VA 20191
Brf Investments, Llc 10 percent owner 11100 SANTA MONICA BLVD., SUITE 800, LOS ANGELES CA 90025
Brc Partners Opportunity Fund, Lp 10 percent owner 11100 SANTA MONICA BLVD. SUITE 800, LOS ANGELES CA 90025
Vintage Capital Management Llc 10 percent owner 4705 S APOPKA VINELAND ROAD SUITE 210, ORLANDO FL 32819

Babcock & Wilcox Enterprises Headlines

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