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CRT (Cross Timbers Royalty Trust) Degree of Operating Leverage : 1.09 (As of Mar. 2025)


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What is Cross Timbers Royalty Trust Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Cross Timbers Royalty Trust's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.09. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Cross Timbers Royalty Trust's Degree of Operating Leverage or its related term are showing as below:

CRT's Degree of Operating Leverage is ranked worse than
52.54% of 906 companies
in the Oil & Gas industry
Industry Median: 0.915 vs CRT: 1.09

Cross Timbers Royalty Trust Degree of Operating Leverage Historical Data

The historical data trend for Cross Timbers Royalty Trust'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.

Cross Timbers Royalty Trust Degree of Operating Leverage Chart

Cross Timbers Royalty Trust 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 1.02 1.07 1.11 1.33 1.10

Cross Timbers Royalty Trust 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 1.08 1.11 1.09 1.10 1.09

Competitive Comparison of Cross Timbers Royalty Trust's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, Cross Timbers Royalty Trust'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.


Cross Timbers Royalty Trust's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Cross Timbers Royalty Trust's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Cross Timbers Royalty Trust's Degree of Operating Leverage falls into.


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Cross Timbers Royalty Trust Degree of Operating Leverage Calculation

Cross Timbers Royalty Trust'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
=( 5.914 (Mar. 2025) / 9.336 (Mar. 2024) - 1 )/( 6.779 (Mar. 2025) / 10.225 (Mar. 2024) - 1 )
=-0.3665/-0.337
=1.09***

* 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.


Cross Timbers Royalty Trust  (NYSE:CRT) 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.


Cross Timbers Royalty Trust Degree of Operating Leverage Related Terms

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


Cross Timbers Royalty Trust Business Description

Traded in Other Exchanges
N/A
Address
C/o Corporate Trustee: Argent Trust Company, 3838 Oak Lawn Avenue, Suite 1720, Dallas, TX, USA, 75219-4518
Cross Timbers Royalty Trust is a United States-based trust. The net profits interests are derived from producing royalty, overriding royalty interests, and working interest properties. The underlying properties of the trust include producing properties in Texas, Oklahoma, and New Mexico.
Executives
Gary D. Simpson officer: Sr VP Investor Rel & Finance, other: Advisory Dir - XTO Energy Inc. 810 HOUSTON STREET, FORT WORTH TX 76102
Timothy L Petrus other: Exec VP - XTO Energy Inc. 810 HOUSTON STREET, FORT WORTH TX 76102
Phillip R Kevil other: Director-XTO Energy Inc. C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Vennerberg Vaughn O Ii other: Exec. VP - Admin., XTO Energy
Bob R Simpson other: Dir/CEO/Chair, XTO Energy C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Bennie G Kniffen other: Sr. VP-Controller, XTO Energy
Steffen E Palko Dir, Pres. and Vice Chairman, other: Dir/Pres/Vice Chair-XTO Energy
Louis G Baldwin other: Executive VP-CFO, XTO Energy
Keith A Hutton other: Exec. VP-Operation, XTO Energy C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Lane G Collins other: Director, XTO Energy
Jack P Randall other: Director, XTO Energy Inc.
Adams William H Iii other: Director, XTO Energy Inc. C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102
Scott G Sherman other: Director XTO Energy Inc.
Herbert D Simons other: Director, XTO Energy Inc.