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ECL (Ecolab) Degree of Operating Leverage : 24.07 (As of Mar. 2025)


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What is Ecolab Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ecolab's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 24.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ECL's Degree of Operating Leverage is ranked worse than
91.12% of 1521 companies
in the Chemicals industry
Industry Median: 1.01 vs ECL: 24.07

Ecolab Degree of Operating Leverage Historical Data

The historical data trend for Ecolab'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.

Ecolab Degree of Operating Leverage Chart

Ecolab 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 2.59 1.52 -0.26 4.00 13.95

Ecolab 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 5.07 6.85 13.80 13.95 24.07

Competitive Comparison of Ecolab's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Ecolab'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.


Ecolab's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ecolab's Degree of Operating Leverage distribution charts can be found below:

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


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Ecolab Degree of Operating Leverage Calculation

Ecolab'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
=( 2940.7 (Mar. 2025) / 2287.2 (Mar. 2024) - 1 )/( 15684.5 (Mar. 2025) / 15500.5 (Mar. 2024) - 1 )
=0.2857/0.0119
=24.07***

* 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.


Ecolab  (NYSE:ECL) 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.


Ecolab Degree of Operating Leverage Related Terms

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


Ecolab Business Description

Industry
Address
1 Ecolab Place, Saint Paul, MN, USA, 55102
Ecolab produces and markets cleaning and sanitation products for the industrial manufacturing, hospitality, healthcare, and life sciences markets. The firm is the global market share leader in this category with a wide array of products and services, including dish and laundry washing systems, pest control, and infection control products. Additionally, Ecolab sells customized water management solutions across its end markets. The company has a strong hold on the US market and is growing its presence abroad.
Executives
Gregory B Cook officer: EVP & PRES - INST GROUP 1 ECOLAB PLACE, SAINT PAUL MN 55102
David Maclennan director 14701 CHARLSON ROAD, EDEN PRAIRIE MN 55347
Nicholas J. Alfano officer: EVP & PRES - GLOBAL INDUSTRIAL 1 ECOLAB PLACE, SAINT PAUL MN 55102
Larry L Berger officer: Chief Technical Officer & SVP 1 ECOLAB PLACE, SAINT PAUL MN 55102
Jennifer J Bradway officer: SVP & CORPORATE CONTROLLER 1 ECOLAB PLACE, ST. PAUL MN 55102
Tracy B Mckibben director 100 RIVERSIDE BOULEVARD, #3S, NEW YORK NY 10069
Arthur J Higgins director C/O ZIMMER, INC., P.O. BOX 708, WARSAW IN 46580
Machiel Duijser officer: EVP & CSCO 1 ECOLAB PLACE, ST. PAUL MN 55102
Gates William H Iii 10 percent owner 2365 CARILLON POINT, KIRKLAND WA 98033
De Boo Alexander A. officer: EVP & PRES - GLOBAL MARKETS 1 ECOLAB PLACE, SAINT PAUL MN 55102
Christophe Beck officer: Executive V.P., Instit. NA 370 WABASHA STREET NORTH, SAINT PAUL MN 55102
Victoria Reich director UNITED STATIONERS SUPPLY CO, ONE PARKWAY NORTH BLVD SUITE 100, LAKE FOREST IL 60045
Laurie M Marsh officer: Senior VP - Human Resources 1601 W. DIEHL ROAD, NAPERVILLE IL 60563
Angela M Busch officer: SVP - Corporate Development 1 ECOLAB PLACE, SAINT PAUL MN 55102
Nicolas A Granucci officer: EVP & PRES - GLOBAL PEST 1 ECOLAB PLACE, SAINT PAUL MN 55102