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FTK (Flotek Industries) Degree of Operating Leverage : 11.17 (As of Mar. 2025)


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What is Flotek Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Flotek Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 11.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FTK's Degree of Operating Leverage is ranked worse than
87.9% of 909 companies
in the Oil & Gas industry
Industry Median: 0.97 vs FTK: 11.17

Flotek Industries Degree of Operating Leverage Historical Data

The historical data trend for Flotek Industries'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.

Flotek Industries Degree of Operating Leverage Chart

Flotek Industries 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 4.23 0.07 -4.68 101.84

Flotek Industries 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 -76.12 22.08 -1.63 101.84 11.17

Competitive Comparison of Flotek Industries's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, Flotek Industries'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.


Flotek Industries's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Flotek Industries's Degree of Operating Leverage distribution charts can be found below:

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


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Flotek Industries Degree of Operating Leverage Calculation

Flotek Industries'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
=( 15.834 (Mar. 2025) / 6.776 (Mar. 2024) - 1 )/( 202.014 (Mar. 2025) / 180.424 (Mar. 2024) - 1 )
=1.3368/0.1197
=11.17***

* 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.


Flotek Industries  (NYSE:FTK) 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.


Flotek Industries Degree of Operating Leverage Related Terms

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


Flotek Industries Business Description

Industry
Traded in Other Exchanges
Address
5775 North Sam Houston Parkway West, Suite 400, Houston, TX, USA, 77086
Flotek Industries Inc is a technology-driven specialty chemistry and data company. It has two reportable segments: Its Chemistry Technologies segment includes specialty chemistries, logistics and technology services. It also include integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, and international supply chain management companies. The Data Analytics segment provides analytical measurement solutions and deliver real-time information and insights to customers to enable optimization of operations and reduction of emissions and their carbon intensity. Key revenue comes from its Chemistry Technologies segment.
Executives
Matthew Wilks director 17010 IH-20, CISCO TX 76437
David Nierenberg director 19605 NE 8TH STREET, CAMAS WA 98607
Ryan Gillis Ezell officer: SVP, Operations 10603 N. SAM HOUSTON PARKWAY W., SUITE 300, HOUSTON TX 77064
James Bond Clement officer: Chief Financial Officer 400 E. KALISTE SALOOM ROAD, SUITE 6000, LAFAYETTE LA 70508
Harshavardhan V Agadi director 5755 NORTH POINT PKWAY #266, ALPHARETTA GA 30022
Gibson John W Jr director, officer: CEO and President 10603 W. SAM HOUSTON PKWY N., SUITE 300, HOUSTON TX 77064
Profrac Holding Corp. 10 percent owner 333 SHOPS BOULEVARD, SUITE 301, WILLOW PARK TX 76087
Evan R Farber director 7903 KENTUCKY AVE., BETHESDA MD 20814
Seham Saleh Carson officer: Interim CFO 3318 RAVENS ROOST, MISSOURI CITY TX 77459
Profrac Holdings Ii, Llc 10 percent owner 333 SHOPS BLVD., SUITE 301, WILLOW PARK TX 76087
Profrac Holdings, Llc 10 percent owner 333 SHOPS BLVD., SUITE 301, WILLOW PARK TX 76087
Thrc Management, Llc 10 percent owner 17018 INTERSTATE 20, CISCO TX 76437
Thrc Holdings, Lp 10 percent owner 17018 INTERSTATE 20, CISCO TX 76437
Staci Wilks 10 percent owner 17018 INTERSTATE 20, CISCO TX 76437
Farris Wilks 10 percent owner 17018 INTERSTATE 20, CISCO TX 76437