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EIX (Edison International) Degree of Operating Leverage : 16.95 (As of Mar. 2025)


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What is Edison International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Edison International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 16.95. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EIX's Degree of Operating Leverage is ranked worse than
92.21% of 488 companies
in the Utilities - Regulated industry
Industry Median: 0.83 vs EIX: 16.95

Edison International Degree of Operating Leverage Historical Data

The historical data trend for Edison 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.

Edison International Degree of Operating Leverage Chart

Edison International 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 -2.55 1.71 0.44 -13.82 1.26

Edison International 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 -5.28 -8.54 2.88 1.26 16.95

Competitive Comparison of Edison International's Degree of Operating Leverage

For the Utilities - Regulated Electric subindustry, Edison 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.


Edison International's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

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

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


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Edison International Degree of Operating Leverage Calculation

Edison 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
=( 5290 (Mar. 2025) / 2771 (Mar. 2024) - 1 )/( 17332 (Mar. 2025) / 16450 (Mar. 2024) - 1 )
=0.9091/0.0536
=16.95***

* 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.


Edison International  (NYSE:EIX) 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.


Edison International Degree of Operating Leverage Related Terms

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


Edison International Business Description

Address
2244 Walnut Grove Avenue, P.O. Box 976, Rosemead, CA, USA, 91770
Edison International is the parent company of Southern California Edison, an electric utility that distributes electricity to 5 million customers in a 50,000-square-mile area of Southern California, excluding Los Angeles. Edison Energy owns interests in nonutility businesses that deal in energy-related products and services. In 2014, Edison International sold its wholesale power generation subsidiary Edison Mission Energy out of bankruptcy to NRG Energy.
Executives
Jeanne Beliveau-dunn director C/O XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Peter J. Taylor director 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Keith Trent director 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Maria C. Rigatti officer: Executive Vice President & CFO 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Adam S Umanoff officer: EVP and General Counsel 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
J Andrew Murphy officer: Senior Vice President 211 CARNEGIE CENTER, PRINCETON NJ 08540
Natalie K Schilling officer: SENIOR VICE PRESIDENT 2244 WALNUT GROVE AVE, ROSEMEAD CA 91770
Caroline Choi officer: Senior Vice President 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Kara Gostenhofer Ryan officer: VP, CAO and Controller 1111 LOUISIANA STREET, # 4600, HOUSTON TX 77002
Chang Vanessa C L director P O BOX 800, 2244 WALNUT GROVE, ROSEMEAD CA 91770
Kate Sturgess officer: Vice President and Controller 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Marcy L. Reed director 84 SOUTH SHORE DR, STURBRIDGE MA 01566
Jill Charlotte Anderson officer: Executive Vice President, SCE 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Carey A. Smith director 6210 ARDREY KELL ROAD, CHARLOTTE NC 28277
Steven D Powell officer: Executive Vice President, SCE 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770