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CRS (Carpenter Technology) Degree of Operating Leverage : 14.85 (As of Mar. 2025)


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What is Carpenter Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Carpenter Technology's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 14.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CRS's Degree of Operating Leverage is ranked worse than
91.08% of 2926 companies
in the Industrial Products industry
Industry Median: 1.1 vs CRS: 14.85

Carpenter Technology Degree of Operating Leverage Historical Data

The historical data trend for Carpenter Technology'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.

Carpenter Technology Degree of Operating Leverage Chart

Carpenter Technology Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.64 33.68 -3.81 -21.52 12.98

Carpenter Technology 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 10.65 12.98 11.88 9.30 14.85

Competitive Comparison of Carpenter Technology's Degree of Operating Leverage

For the Metal Fabrication subindustry, Carpenter Technology'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.


Carpenter Technology's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Carpenter Technology's Degree of Operating Leverage distribution charts can be found below:

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


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Carpenter Technology Degree of Operating Leverage Calculation

Carpenter Technology'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
=( 486.6 (Mar. 2025) / 232 (Mar. 2024) - 1 )/( 2920.1 (Mar. 2025) / 2719.2 (Mar. 2024) - 1 )
=1.0974/0.0739
=14.85***

* 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.


Carpenter Technology  (NYSE:CRS) 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.


Carpenter Technology Degree of Operating Leverage Related Terms

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


Carpenter Technology Business Description

Traded in Other Exchanges
Address
1735 Market Street, 15th Floor, Philadelphia, PA, USA, 19103
Carpenter Technology Corp supplies specialty metals to a variety of end markets, including aerospace and defense, industrial machinery and consumer durables, medical, and energy, among others. The company's reportable segments include; Specialty Alloys Operations and Performance Engineered Products. It generates maximum revenue from the Specialty Alloys Operations segment. The SAO segment is comprised of the company's alloy and stainless steel manufacturing operations. This includes operations performed at mills predominantly in Reading and Latrobe, Pennsylvania, and surrounding areas as well as South Carolina and Alabama. Geographically, the company derives its maximum revenue from the United States and the rest from Europe, Asia Pacific, Mexico, Canada, and other regions.
Executives
Pritchett Colleen director C/O HEXCEL CORPORATION, 281 TRESSER BLVD., 16TH FLOOR, STAMFORD CT 06901
James D Dee officer: VP, Gen Counsel & Secretary TWO PITCAIRN PLACE, SUITE 200, 165 TOWNSHIP LINE ROAD, JENKINTOWN PA 19046
Elizabeth A Socci officer: VP, Controller & Chf Acctg Off C/O CARPENTER TECHNOLOGY CORPORATION, 1735 MARKET STREET, 15TH FL, PHILADELPHIA PA 19103
I Martin Inglis director C/O CARPENTER TECHNOLOGY CORPORATION, PO BOX 14662, READING PA 19612
Viola L Acoff director C/O CARPENTER TECHNOLOGY CORPORATION, 1735 MARKET STREET, 15TH FL, PHILADELPHIA PA 19103
Tony R Thene officer: Sr VP and CFO ALCOA INC., 201 ISABELLA STREET, PITTSBURGH PA 15212-5858
Ramin Younessi director 510 LAKE COOK ROAD, SUITE 100, DEERFIELD IL 60015
Timothy Lain officer: VP-Controller, Chf Acctg Ofcr C/O CARPENTER TECHNOLOGY CORPORATION, PO BOX 14662, READING PA 19612
Steven E Karol director C/O STOCKERYALE INC, 32 HAMPSHIRE RD, SALEM NH 03079
Marshall D Akins officer: VP & Chief Commercial Officer CARPENTER TECHNOLOGY CORPORATION, 1735 MARKET STREET, PHILADELPHIA PA 19103
Mclane Charles Douglas Jr director C/O CARPENTER TECHNOLOGY CORPORATION, 1735 MARKET STREET, 15TH FL, PHILADELPHIA PA 19103
Brian J Malloy officer: VP - Chief Commercial Officer C/O CARPENTER TECHNOLOGY CORPORATION, 1735 MARKET STREET, 15TH FL, PHILADELPHIA PA 19103
Kathy Hopinkah Hannan director ANNALY CAPITAL MANAGEMENT, INC., 1211 AVE. OF THE AMERICAS, NEW YORK NY 10036
David Graf officer: VP and Group President - SAO C/O CARPENTER TECHNOLOGY CORPORATION, 1735 MARKET STREET, PHILADELPHIA PA 19103
Kathleen Ligocki director 3296 PINE LAKE ROAD, WEST BLOOMFIELD MI 48324