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ES (Eversource Energy) Degree of Operating Leverage : 23.93 (As of Mar. 2025)


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What is Eversource Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Eversource Energy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 23.93. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ES's Degree of Operating Leverage is ranked worse than
93.03% of 488 companies
in the Utilities - Regulated industry
Industry Median: 0.835 vs ES: 23.93

Eversource Energy Degree of Operating Leverage Historical Data

The historical data trend for Eversource Energy'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.

Eversource Energy Degree of Operating Leverage Chart

Eversource Energy 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 4.90 0.25 0.74 25.05 -3,717.89

Eversource Energy 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 8.05 4.95 12.93 -3,717.89 23.93

Competitive Comparison of Eversource Energy's Degree of Operating Leverage

For the Utilities - Regulated Electric subindustry, Eversource Energy'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.


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

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

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


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Eversource Energy Degree of Operating Leverage Calculation

Eversource Energy'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
=( 2436.908 (Mar. 2025) / 678.853 (Mar. 2024) - 1 )/( 12686.609 (Mar. 2025) / 11447.605 (Mar. 2024) - 1 )
=2.5897/0.1082
=23.93***

* 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.


Eversource Energy  (NYSE:ES) 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.


Eversource Energy Degree of Operating Leverage Related Terms

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


Eversource Energy Business Description

Traded in Other Exchanges
Address
300 Cadwell Drive, Springfield, MA, USA, 1104
Eversource Energy is a diversified holding company with subsidiaries that provide rate-regulated electric and gas distribution service to more than 4 million customers in the Northeast US. The company plans to sell its water utility, Aquarion, in 2025. Eversource expanded its service territories with acquisitions of NStar (2012), Aquarion (2017), and Columbia Gas (2020). In 2024 Eversource exited its 50% partnership with European utility Orsted to develop 2 gigawatts of offshore wind projects in the Northeast US. The company exited most of its unregulated businesses in 2006.
Executives
Penelope M Conner officer: EVP-Cust Exp & Energy Strategy 300 CADWELL DRIVE, SPRINGFIELD MA 01104
Gregory B Butler officer: Sr. V.P. & Gen. Counsel EVERSOURCE ENERGY, 56 PROSPECT STREET, HARTFORD CT 06103
Cleveland Cotton M other: Trustee EVERSOURCE ENERGY, 300 CADWELL DRIVE, SPRINGFIELD MA 01104
Jay Buth officer: VP-Accounting and Controller EVERSOURCE ENERGY, 107 SELDEN STREET, BERLIN CT 06037
Linda Dorcena Forry other: Trustee C/O EVERSOURCE ENERGY, 300 CADWELL DRIVE, SPRINGFIELD MA 01104
Frederica M Williams other: Trustee C/O EVERSOURCE ENERGY, 300 CADWELL DRIVE, SPRINGFIELD MA 01104
Van Faasen William C other: Trustee 1499 POST ROAD, FAIRFIELD CT 06824
Daniel J Nova other: Trustee C/O HIGHLAND CAPITAL PARTNERS INC, TWO INTERNATIONAL PLACE, BOSTON MA 02110
Loretta D. Keane other: Trustee 300 CADWELL DRIVE, SPRINGFIELD MA 01104
Christine M Carmody officer: SVP - Human Resources 800 BOYLSTON STREET, BOSTON MA 02199
John M. Moreira officer: EVP, CFO and Treasurer 300 CADWELL DRIVE, SPRINGFIELD MA 01104
Hunt James W Iii officer: EVP-Corp Rel & Sustainability 300 CADWELL DRIVE, SPRINGFIELD MA 01104
James S Distasio other: Trustee C/O EVERSOURCE ENERGY, 300 CADWELL DRIVE, BOSTON MA 01104
David H. Long other: Trustee C/O EVERSOURCE ENERGY, 107 SELDEN STREET - LEGAL DEPT., BERLIN CT 06037
John Y Kim other: Trustee 51 MADISON AVENUE, NEW YORK NY 10010