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DTI (Drilling Tools International) Degree of Operating Leverage : -11.07 (As of Mar. 2025)


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What is Drilling Tools International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Drilling Tools International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -11.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Drilling Tools International's Degree of Operating Leverage or its related term are showing as below:

DTI's Degree of Operating Leverage is ranked better than
90.18% of 906 companies
in the Oil & Gas industry
Industry Median: 0.93 vs DTI: -11.07

Drilling Tools International Degree of Operating Leverage Historical Data

The historical data trend for Drilling Tools International'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.

Drilling Tools International Degree of Operating Leverage Chart

Drilling Tools International Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 10.52 -0.26 -43.87

Drilling Tools International Quarterly Data
Dec21 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 -17.38 15.29 23.98 -43.87 -11.07

Competitive Comparison of Drilling Tools International's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, Drilling Tools International'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.


Drilling Tools International's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Drilling Tools International's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Drilling Tools International's Degree of Operating Leverage falls into.


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Drilling Tools International Degree of Operating Leverage Calculation

Drilling Tools International'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
=( 1.59 (Mar. 2025) / 17.144 (Mar. 2024) - 1 )/( 160.352 (Mar. 2025) / 148.209 (Mar. 2024) - 1 )
=-0.9073/0.0819
=-11.07***

* 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.


Drilling Tools International  (NAS:DTI) 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.


Drilling Tools International Degree of Operating Leverage Related Terms

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Drilling Tools International Business Description

Traded in Other Exchanges
N/A
Address
3701 Briarpark Drive, Suite 150, Houston, TX, USA, 77042
Drilling Tools International Corp manufactures, rents, inspects, and refurbishes downhole drilling tools primarily to companies in the oil and natural gas industry for bottom hole assemblies used in onshore and offshore horizontal and directional drilling. The company's United States operations have locations in Texas, California, Louisiana, Oklahoma, Pennsylvania, North Dakota, New Mexico, Utah, and Wyoming. The company's single segment derives revenues from customers by providing oilfield equipment and services to operators in the oil and natural gas sectors.
Executives
Thomas Monroe Patterson director 801 CHERRY STREET, SUITE 2100, FORT WORTH TX 76102
Thomas O Hicks director, 10 percent owner 2200 ROSS AVENUE, SUITE 4600 W, DALLAS TX 75201
David Richard Johnson officer: Chief Financial Officer 27215 SYMPHONY CREEK LN, FULSHEAR TX 77441
Robert Wayne Prejean director, officer: CEO, President 3701 BRIARPARK DRIVE, SUITE 150, HOUSTON TX 77042
Domino Michael Wayne Jr. officer: President, DTR Division 3701 BRIARPARK DRIVE, SUITE 150, HOUSTON TX 77042
Vermillion Charles Richard Jr. director 4605 POST OAK PLACE #202, HOUSTON TX 77027
L.p. Hhep-directional, 10 percent owner 2200 ROSS AVENUE, 50TH FLOOR, DALLAS TX 75201
Curt L. Crofford director 100 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Eric C Neuman director 100 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Jack D Furst director 2591 LAKESIDE PARKWAY, SUITE 100, FLOWER MOUND TX 75022
Roc Energy Holdings, Llc 10 percent owner 16400 DALLAS PARKWAY, DALLAS TX 75248
Daniel Jeffrey Kimes director, officer: Chief Executive Officer 16400 DALLAS PARKWAY, DALLAS TX 75248
Joseph Drysdale director 16400 DALLAS PARKWAY, DALLAS TX 75248
Win Graham director 16400 DALLAS PARKWAY, DALLAS TX 75248
Rosemarie Cicalese officer: Chief Financial Officer 16400 DALLAS PARKWAY, DALLAS TX 75248