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DCI (Donaldson Co) Degree of Operating Leverage : -1.72 (As of Apr. 2025)


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What is Donaldson Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Donaldson Co's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was -1.72. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DCI's Degree of Operating Leverage is ranked better than
77.95% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs DCI: -1.72

Donaldson Co Degree of Operating Leverage Historical Data

The historical data trend for Donaldson Co'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.

Donaldson Co Degree of Operating Leverage Chart

Donaldson Co Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.16 1.12 0.95 2.02 3.12

Donaldson Co Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 2.78 3.12 2.28 2.14 -1.72

Competitive Comparison of Donaldson Co's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Donaldson Co'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.


Donaldson Co's Degree of Operating Leverage Distribution in the Industrial Products Industry

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

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


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Donaldson Co Degree of Operating Leverage Calculation

Donaldson Co's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 504.3 (Apr. 2025) / 534.2 (Apr. 2024) - 1 )/( 3645.6 (Apr. 2025) / 3530.4 (Apr. 2024) - 1 )
=-0.056/0.0326
=-1.72***

* 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.


Donaldson Co  (NYSE:DCI) 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.


Donaldson Co Degree of Operating Leverage Related Terms

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


Donaldson Co Business Description

Traded in Other Exchanges
Address
1400 West 94th Street, Minneapolis, MN, USA, 55431
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.
Executives
James Owens director 1200 WILLOW LAKE BOULEVARD, P.O. BOX 64683, ST. PAUL MN 55164-0683
Thomas R Scalf officer: Senior Vice President P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Willard D Oberton director 2001 THEURER BLVD, WINONA MN 55987
Scott J. Robinson officer: Senior Vice President P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Tod E. Carpenter director, officer: Chairman, President and CEO P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Amy C Becker officer: Vice President P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Sheila G. Kramer officer: Vice President P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Ajita G Rajendra director A. O. SMITH WATER PRODUCTS COMPANY, 500 LINDAHL PARKWAY, ASHLAND CITY TN 37015
Guillermo Briseno officer: President PO BOX 1299, MINNEAPOLIS MN 55440
Douglas A. Milroy director PO BOX 1299, MINNEAPOLIS MN 55440
Christopher M. Hilger director PO BOX 1299, MINNEAPOLIS MN 55440
Andrew C Dahlgren officer: President PO BOX 1299, MINNEAPOLIS MN 55440
Wim Vermeersch officer: Vice President P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Jeffrey E Spethmann officer: Senior Vice President P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Richard Brent Lewis officer: Senior Vice President PO BOX 1299, MINNEAPOLIS MN 55440