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CNP (CenterPoint Energy) Degree of Operating Leverage : 1.90 (As of Mar. 2025)


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What is CenterPoint Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. CenterPoint Energy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.90. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CNP's Degree of Operating Leverage is ranked worse than
65.09% of 487 companies
in the Utilities - Regulated industry
Industry Median: 0.82 vs CNP: 1.90

CenterPoint Energy Degree of Operating Leverage Historical Data

The historical data trend for CenterPoint Energy'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.

CenterPoint Energy Degree of Operating Leverage Chart

CenterPoint Energy 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 67.65 -38.47 4.18 1.18 -24.23

CenterPoint Energy 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 -1.89 -2.62 -0.74 -24.23 1.90

Competitive Comparison of CenterPoint Energy's Degree of Operating Leverage

For the Utilities - Regulated Electric subindustry, CenterPoint Energy'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.


CenterPoint Energy's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, CenterPoint Energy's Degree of Operating Leverage distribution charts can be found below:

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


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CenterPoint Energy Degree of Operating Leverage Calculation

CenterPoint Energy'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
=( 2036 (Mar. 2025) / 1867 (Mar. 2024) - 1 )/( 8943 (Mar. 2025) / 8537 (Mar. 2024) - 1 )
=0.0905/0.0476
=1.90***

* 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.


CenterPoint Energy  (NYSE:CNP) 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.


CenterPoint Energy Degree of Operating Leverage Related Terms

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


CenterPoint Energy Business Description

Traded in Other Exchanges
Address
1111 Louisiana, Houston, TX, USA, 77002
CenterPoint Energy owns a portfolio of businesses. Its regulated electric utilities provide transmission and distribution services to more than 2.5 million customers in the Houston area, southern Indiana, and west central Ohio. The company has natural gas distribution systems serving approximately 4 million customers.
Executives
Kristie Colvin officer: SVP and CAO 1111 LOUISIANA, HOUSTON TX 77002
Barry T Smitherman director NRG ENERGY, INC., 804 CARNEGIE CENTER, PRINCETON NJ 08540
Christopher A Foster officer: EVP and CFO 77 BEALE ST., P.O. BOX 770000, SAN FRANCISCO CA 94177
David J Lesar director, officer: President & CEO
Jason P. Wells officer: EVP & CFO 77 BEALE ST., P.O. BOX 770000, SAN FRANCISCO CA 94177
Ricky Anthony Raven director 1111 LOUISIANA STREEET, STE. 4600, HOUSTON TX 77002
Thaddeus J. Malik director 1111 LOUISIANA STREET, STE. 4600, HOUSTON TX 77002
Russell Keith Wright officer: VP, FP&A and Interim CAO 1111 LOUISIANA STREET, STE 4600, HOUSTON TX 77002
Ted Pound director C/O ALLIS-CHALMERS, 5075 WESTHIEMER, #890, HOUSTON TX 77056
Kara Gostenhofer Ryan officer: Vice President and CAO 1111 LOUISIANA STREET, # 4600, HOUSTON TX 77002
Martin H. Nesbitt director 10319 WESTLAKE DRIVE, SUITE 112, BETHESDA MD 20817
Wendolynn Montoya Cloonan director 1111 LOUISIANA STREET #4600, HOUSTON TX 77002
Wooten Lewis Raquelle director 1111 LOUISIANA STREET, #4600, HOUSTON TX 77002
Phillip R Smith director 1111 LOUISIANA, HOUSTON TX 77002
Earl M Cummings director 1111 LOUISIANA STREET #4600, HOUSTON TX 77002

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