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EXP (Eagle Materials) Degree of Operating Leverage : -77.61 (As of Mar. 2025)


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What is Eagle Materials Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Eagle Materials's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -77.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EXP's Degree of Operating Leverage is ranked better than
96.41% of 390 companies
in the Building Materials industry
Industry Median: 1.5 vs EXP: -77.61

Eagle Materials Degree of Operating Leverage Historical Data

The historical data trend for Eagle Materials'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.

Eagle Materials Degree of Operating Leverage Chart

Eagle Materials Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.81 0.54 1.52 1.15 -77.61

Eagle Materials 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 1.15 1.15 0.06 -6.68 -77.61

Competitive Comparison of Eagle Materials's Degree of Operating Leverage

For the Building Materials subindustry, Eagle Materials'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.


Eagle Materials's Degree of Operating Leverage Distribution in the Building Materials Industry

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

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


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Eagle Materials Degree of Operating Leverage Calculation

Eagle Materials'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
=( 633.729 (Mar. 2025) / 661.237 (Mar. 2024) - 1 )/( 2260.508 (Mar. 2025) / 2259.297 (Mar. 2024) - 1 )
=-0.0416/0.0005
=-77.61***

* 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.


Eagle Materials  (NYSE:EXP) 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.


Eagle Materials Degree of Operating Leverage Related Terms

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


Eagle Materials Business Description

Traded in Other Exchanges
Address
5960 Berkshire Lane, Suite 900, Dallas, TX, USA, 75225
Eagle Materials Inc produces and sells construction products and building materials. Construction products include cement, slag, concrete, and aggregates and building materials include cement and gypsum wallboard, and are sold to the construction and building industries. The firm organizes itself into two sectors: Heavy Materials, which includes the Cement and Concrete and Aggregates segments, and Light Materials, which includes the Gypsum Wallboard and Recycled Paperboard segments.
Executives
Michael R Nicolais director OLIVAN INVESTMENT LP, 8117 PRESTON ROAD SUITE 250W, DALLAS TX 75225
Eric Cribbs officer: Executive Vice President 5960 BERKSHIRE LN, SUITE 800, DALLAS TX 75225
Dale Craig Kesler officer: EVP and CFO 3811 TURTLE CREEK BLVD., SUITE 1100, DALLAS TX 75219
Michael Haack director, officer: President & CEO 3811 TURTLE CREEK BLVD., SUITE 1100, DALLAS TX 75219
Richard Ross Stewart director 2707 N LOOP WEST 9TH FL, HOUSTON TX 77008
Tony Thompson officer: Senior Vice President 5960 BERKSHIRE LN, SUITE 800, DALLAS TX 75225
William R Devlin officer: Vice President & Controller C/O EAGLE MATERIALS INC., 3811 TURTLE CREEK BLVD SUITE 1100, DALLAS TX 75219
George John Damiris director 100 CRESCENT COURT, SUITE 1600, DALLAS TX 75201
Matt Newby officer: EVP & General Counsel 5960 BERKSHIRE LN, SUITE 900, DALLAS TX 75225
David B Powers officer: Executive Vice President C/O EAGLE MATERIALS INC., 3811 TURTLE CREEK BLVD SUITE 1100, DALLAS TX 75201
Robert S Stewart officer: EVP-Strategy & Corp. Develop. C/O EAGLE MATERIALS INC., 3811 TURTLE CREEK BLVD SUITE 1100, DALLAS TX 75219
Steven L Wentzel officer: President (American Gypsum) 5960 BERKSHIRE LN #800, DALLAS TX 75225
Bowman Ed H Jr director C/O F.Y.I. INC, 3232 MCKINNEY AVE STE 900, DALLAS TX 75204
James H Graass officer: EVP & General Counsel C/O EAGLE MATERIALS INC., 3811 TURTLE CREEK BLVD SUITE 1100, DALLAS TX 75219
Martin M Ellen director 5960 BERKSHIRE LN, SUITE 900, DALLAS TX 75225