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Fuel Tech (FRA:FUE1) Degree of Operating Leverage : 1.90 (As of Mar. 2025)


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What is Fuel Tech Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Fuel Tech's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.90. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRA:FUE1's Degree of Operating Leverage is ranked worse than
61.23% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs FRA:FUE1: 1.90

Fuel Tech Degree of Operating Leverage Historical Data

The historical data trend for Fuel Tech'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.

Fuel Tech Degree of Operating Leverage Chart

Fuel Tech 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 1.68 -13.45 -151.71 10.81 -23.06

Fuel Tech 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 -17.98 -8.04 -15.32 -23.06 1.90

Competitive Comparison of Fuel Tech's Degree of Operating Leverage

For the Pollution & Treatment Controls subindustry, Fuel Tech'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.


Fuel Tech's Degree of Operating Leverage Distribution in the Industrial Products Industry

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

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


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Fuel Tech Degree of Operating Leverage Calculation

Fuel Tech'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
=( -2.936 (Mar. 2025) / -2.506 (Mar. 2024) - 1 )/( 24.564 (Mar. 2025) / 22.904 (Mar. 2024) - 1 )
=0.1716/0.0725
=2.37***

* 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.


Fuel Tech  (FRA:FUE1) 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.


Fuel Tech Degree of Operating Leverage Related Terms

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Fuel Tech Business Description

Traded in Other Exchanges
Address
27601 Bella Vista Parkway, Warrenville, IL, USA, 60555-1617
Fuel Tech Inc is an technology provider of boiler optimization, efficiency improvement, and air pollution reduction to utility and industrial customers. The company operates in two segments, Air Pollution Control and Fuel Chem. The Air Pollution Control technology segment includes technologies to reduce NOx emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. The Fuel Chem technology segment uses chemical processes in combination with Computational Fluid Dynamics and Chemical Kinetics Modeling boiler modeling for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace using TIFI Targeted In-Furnace Injection technology.

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