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EPAC (Enerpac Tool Group) Degree of Operating Leverage : 20.71 (As of Feb. 2025)


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What is Enerpac Tool Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Enerpac Tool Group's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 20.71. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EPAC's Degree of Operating Leverage is ranked worse than
93.06% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs EPAC: 20.71

Enerpac Tool Group Degree of Operating Leverage Historical Data

The historical data trend for Enerpac Tool Group'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.

Enerpac Tool Group Degree of Operating Leverage Chart

Enerpac Tool Group Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.71 11.43 -5.26 39.48 -31.96

Enerpac Tool Group Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 77.85 286.50 -31.96 -18.90 20.71

Competitive Comparison of Enerpac Tool Group's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Enerpac Tool Group'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.


Enerpac Tool Group's Degree of Operating Leverage Distribution in the Industrial Products Industry

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

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


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Enerpac Tool Group Degree of Operating Leverage Calculation

Enerpac Tool Group's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 123.109 (Feb. 2025) / 113.078 (Feb. 2024) - 1 )/( 599.827 (Feb. 2025) / 597.269 (Feb. 2024) - 1 )
=0.0887/0.0043
=20.71***

* 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.


Enerpac Tool Group  (NYSE:EPAC) 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.


Enerpac Tool Group Degree of Operating Leverage Related Terms

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


Enerpac Tool Group Business Description

Traded in Other Exchanges
Address
N86 W12500 Westbrook Crossing, Menomonee Falls, WI, USA, 53201
Enerpac Tool Group Corp provides high-precision tools, controlled-force products, and solutions for precise heavy lifting. The company has one reportable segment, the Industrial Tools & Services (IT&S) Segment. The IT&S segment is engaged in the design, manufacture, and distribution of branded hydraulic and mechanical tools and in providing services and tool rental to the refinery/petrochemical; general industrial; industrial maintenance, repair, and operations (MRO); machining & manufacturing; power generation; infrastructure; mining; and other markets. Geographically, the company has operations in Algeria, Australia, Brazil, France, Germany, Kazakhstan, India, Italy, Japan, Norway, Poland, Saudi Arabia, Singapore, South Africa, South Korea, Spain, and the United Arab Emirates.
Executives
Ferland E James Jr director ALVARADO SQUARE, MS 2850, ALBUQUERQUE NM 87158
James Denis officer: EVP, GC and Secretary N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Benjamin James Topercer officer: EVP - Chief HR Officer N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Anthony Peter Colucci officer: EVP - CFO N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Lynn C Minella director 5757 N GREEN BAY AVE, MILWAUKEE WI 53209
Danny L Cunningham director C/O ACTUANT CORPORATION, N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Simmons Sidney S. Ii director 562 PARK STREET, SUITE 300, JACKSONVILLE FL 32204
Markus Limberger officer: EVP, Operations N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Paul Sternlieb officer: President and CEO 70 WEST MADISON SUITE 4400, CHICAGO IL 60602
Healy Colleen director 11120 FOUR POINTS DRIVE, SUITE 100, AUSTIN TX 78726
Ricky T Dillon officer: Executive Vice President - CFO ONE SOUTH WACKER DRIVE, SUITE 1000, CHICAGO IL 60606
Scott Matthew Vuchetich officer: EVP, Mkg and Pres-Americas N86 W12500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Richard D Holder director EATON CENTER, 1111 SUPERIOR AVENUE, CLEVELAND OH 44114
Bryan Johnson officer: Controller and PAO N86 W112500 WESTBROOK CROSSING, MENOMONEE FALLS WI 53051
Randal W Baker director, officer: Pres. and CEO 100 E WISCONSIN AVENUE, SUITE 2780, MILWAUKEE WI 53202