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DTE (DTE Energy Co) Degree of Operating Leverage : 0.84 (As of Mar. 2025)


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What is DTE Energy Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. DTE Energy Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.84. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DTE's Degree of Operating Leverage is ranked worse than
50.41% of 488 companies
in the Utilities - Regulated industry
Industry Median: 0.83 vs DTE: 0.84

DTE Energy Co Degree of Operating Leverage Historical Data

The historical data trend for DTE Energy 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.

DTE Energy Co Degree of Operating Leverage Chart

DTE Energy Co 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 -6.91 -1.24 1.37 -0.95 0.68

DTE Energy Co 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 -0.49 -0.45 -1.33 0.68 0.84

Competitive Comparison of DTE Energy Co's Degree of Operating Leverage

For the Utilities - Regulated Electric subindustry, DTE Energy 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.


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

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

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


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DTE Energy Co Degree of Operating Leverage Calculation

DTE Energy Co'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
=( 2446 (Mar. 2025) / 2223 (Mar. 2024) - 1 )/( 13657 (Mar. 2025) / 12206 (Mar. 2024) - 1 )
=0.1003/0.1189
=0.84***

* 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.


DTE Energy Co  (NYSE:DTE) 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.


DTE Energy Co Degree of Operating Leverage Related Terms

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


DTE Energy Co Business Description

Traded in Other Exchanges
Address
One Energy Plaza, Detroit, MI, USA, 48226-1279
DTE Energy owns two regulated utilities in Michigan that contribute 90% of earnings. DTE Electric serves approximately 2.3 million customers in southeastern Michigan, including Detroit. DTE Gas serves 1.3 million customers throughout the state. In addition, DTE has nonutility businesses and investments including energy marketing and trading, renewable natural gas facilities, and on-site industrial energy projects.
Executives
Joann Chavez officer: Sr VP & Chief Legal Officer ONE ENERGY PLAZA, 1610 WCB, DETROIT MI 48226
Tracy J Myrick officer: Chief Accounting Officer ONE ENERGY PLAZA, 1610 WCB, DETROIT MI 48226
Matthew T. Paul officer: President & COO DTE Gas Co. ONE ENERGY PLAZA, 1610 WCB, DETROIT MI 48226
Trevor F Lauer officer: President and COO-DTE Electric ONE ENERGY PLAZA, DETROIT MI 48226
Lisa A. Muschong officer: Corporate Secretary ONE ENERGY PLAZA, DETROIT MI 48226
Mark W Stiers officer: President and COO - DTE Gas ONE ENERGY PLAZA, DETROIT MI 48226
Robert A. Richard officer: Executive Vice President ONE ENERGY PLAZA, DETROIT MI 48226
Joi M. Harris officer: Pres. & COO - DTE Gas Company ONE ENERGY PLAZA, DETROIT MI 48226
Deborah L Byers director C/O EXCELERATE ENERGY, INC., 2445 TECHNOLOGY FOREST BLVD., LEVEL 6, THE WOODLANDS TX 77381
Gerard M Anderson director, officer: Chairman and CEO ONE ENERGY PLAZA, LEGAL DEPARTMENT, DETROIT MI 48226
David A Thomas director ONE ENERGY PLAZA, DETROIT MI 48226
Mark C. Rolling officer: VP Controller & CAO ONE ENERGY PLAZA, DETROIT MI 48226
David E Meador officer: Vice Chairman and CAO ONE ENERGY PLAZA, DETROIT MI 48226
Peter B Oleksiak officer: Sr. Vice President and CFO ONE ENERGY PLAZA, DETROIT MI 48226
Gary Torgow director 235 EAST MAIN STREET, MIDLAND MI 48640