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ETR (Entergy) Degree of Operating Leverage : -73.26 (As of Mar. 2025)


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What is Entergy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Entergy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -73.26. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ETR's Degree of Operating Leverage is ranked better than
98.34% of 481 companies
in the Utilities - Regulated industry
Industry Median: 0.75 vs ETR: -73.26

Entergy Degree of Operating Leverage Historical Data

The historical data trend for Entergy'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.

Entergy Degree of Operating Leverage Chart

Entergy 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 -3.55 -0.39 -0.26 -2.61 1.44

Entergy 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 -2.35 1.75 3.33 1.44 -73.26

Competitive Comparison of Entergy's Degree of Operating Leverage

For the Utilities - Regulated Electric subindustry, Entergy'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.


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

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

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


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Entergy Degree of Operating Leverage Calculation

Entergy'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
=( 3020.555 (Mar. 2025) / 2563.849 (Mar. 2024) - 1 )/( 11931.899 (Mar. 2025) / 11960.981 (Mar. 2024) - 1 )
=0.1781/-0.0024
=-73.26***

* 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.


Entergy  (NYSE:ETR) 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.


Entergy Degree of Operating Leverage Related Terms

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


Entergy Business Description

Address
639 Loyola Avenue, New Orleans, LA, USA, 70113
Entergy is a holding company with five regulated integrated utilities that generate and distribute electricity to about 3 million customers in Arkansas, Louisiana, Mississippi, and Texas. It is one of the largest power producers in the country with 24 gigawatts of rate-regulated owned and leased power generation capacity. Entergy was the second-largest nuclear owner in the US before it began retiring and selling its plants in the Northeast in 2014. It plans to sell its two small gas utilities in Louisiana.
Executives
Deanna D. Rodriguez other: "Officer" Under Sec. 16 Rules C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FLOOR, NEW ORLEANS LA 70113
Eliecer Viamontes other: "Officer" Under Sec. 16 Rules C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FLOOR, NEW ORLEANS LA 70113
Haley Fisackerly other: "Officer" Under Sec 16 Rules
Norgeot Peter S Jr officer: SVP, Transformation C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVENUE, 26TH FLOOR, NEW ORLEANS LA 70113
Anastasia Minor other: "Officer" Under Sec. 16 Rules C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FLOOR, NEW ORLEANS LA 70113
Jason Chapman other: "Officer" Under Sec. 16 Rules C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FLOOR, NEW ORLEANS LA 70113
May Phillip R Jr other: "Officer" Under Sec. 16 Rules C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FLOOR, NEW ORLEANS LA 70113
Marcus V Brown officer: Senior V.P. & General Counsel C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FL., NEW ORLEANS LA 70113
Kimberly Cook-nelson officer: EVP, Chief Nuclear Officer C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FLOOR, NEW ORLEANS LA 70113
Andrew S Marsh officer: Executive Vice President & CFO C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FLOOR, NEW ORLEANS LA 70113
Roderick K West other: "Officer" Under Sec. 16 Rules 1600 PERDIDO STREET, BLDG 505, NEW ORLEANS LA 70112
Reginald T Jackson officer: SVP, Chief Accounting Officer C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FLOOR, NEW ORLEANS LA 70113
Alexis M Herman director 1501 M STREET N W SUITE 1175, WASHINGTON DC 20005
John H. Black director C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FLOOR, NEW ORLEANS LA 70113
Gina F. Adams director C/O ENTERGY CORPORATION LEGAL DEPT., 639 LOYOLA AVE., 26TH FLOOR, NEW ORLEANS LA 70113