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FMC (FMC) Degree of Operating Leverage : 37.28 (As of Mar. 2025)


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What is FMC Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. FMC's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 37.28. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FMC's Degree of Operating Leverage is ranked worse than
93.93% of 247 companies
in the Agriculture industry
Industry Median: 0.98 vs FMC: 37.28

FMC Degree of Operating Leverage Historical Data

The historical data trend for FMC'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.

FMC Degree of Operating Leverage Chart

FMC 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 11.71 1.85 0.73 2.32 1.70

FMC 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 2.44 3.24 4.39 1.70 37.28

Competitive Comparison of FMC's Degree of Operating Leverage

For the Agricultural Inputs subindustry, FMC'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.


FMC's Degree of Operating Leverage Distribution in the Agriculture Industry

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

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


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FMC Degree of Operating Leverage Calculation

FMC'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
=( 473.6 (Mar. 2025) / 307.2 (Mar. 2024) - 1 )/( 4119.5 (Mar. 2025) / 4060.5 (Mar. 2024) - 1 )
=0.5417/0.0145
=37.28***

* 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.


FMC  (NYSE:FMC) 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.


FMC Degree of Operating Leverage Related Terms

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


FMC Business Description

Industry
Address
2929 Walnut Street, Philadelphia, PA, USA, 19104
FMC is a pure-play global crop protection company with a fairly balanced product portfolio across geographies and crop exposure. Through acquisitions, FMC is now one of the five largest patented crop protection companies and focuses on the development of new products, including biologicals, through its research and development pipeline.
Executives
Carol Anthony Davidson director
Ronaldo Pereira officer: EVP, President, FMC Americas 1620 MONK RD, GLADWYNE PA 19035
Pierre R Brondeau officer: CEO, President, Chairman of Bd ROHAM AND HAAS CO, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106
Michael Finian Reilly officer: EVP, General Counsel & Sec. FMC CORPORATION, 2929 WALNUT STREET, PHILADELPHIA PA 19104
Jacqueline Scanlan officer: Executive VP & Chief HRO HAEMONETICS CORPORATION, 400 WOOD ROAD, BRAINTREE MA 02184
Andrew D Sandifer officer: EVP and CFO FMC CORPORATION, 2929 WALNUT STREET, PHILADELPHIA PA 19104
Robert C Pallash director 17000 ROTUNDA DRIVE, DEARBORN MI 48120
Nicholas Pfeiffer officer: Corporate Controller 1735 MARKET STREET, PHILADELPHIA PA 19103
Patricia Verduin director ONE CONAGRA DRIVE, OMAHA NE 68102
Mark Douglas officer: Pres., Agricultural Solutions ROHM AND HAAS COMPANY, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106
Vsevolod Rostovtsev officer: VP & Chief Technology Officer 909 TWYCKENHAM ROAD, MEDIA PA 19063
Kathy Lynn Fortmann director INTERNATIONAL FLAVORS & FRAGRANCES INC., 521 WEST 57TH STREET, NEW YORK NY 10019
Kathleen Shelton officer: EVP, Chief Technology Officer 630 UNIVERSITY PLACE, SWARTHMORE PA 19081
Diane Allemang officer: EVP & Chief Marketing Officer 1615 NORTH CLEVELAND STREET, ARLINGTON VA 22201
Eduardo E Cordeiro director C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210

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