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GNK (Genco Shipping & Trading) Degree of Operating Leverage : -40.03 (As of Mar. 2025)


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What is Genco Shipping & Trading Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Genco Shipping & Trading's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -40.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Genco Shipping & Trading's Degree of Operating Leverage or its related term are showing as below:

GNK's Degree of Operating Leverage is ranked better than
96.52% of 978 companies
in the Transportation industry
Industry Median: 0.87 vs GNK: -40.03

Genco Shipping & Trading Degree of Operating Leverage Historical Data

The historical data trend for Genco Shipping & Trading'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.

Genco Shipping & Trading Degree of Operating Leverage Chart

Genco Shipping & Trading 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 -85.56 -3.66 7.87 3.58 -255.77

Genco Shipping & Trading 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 4.98 12.79 28.48 -255.77 -40.03

Competitive Comparison of Genco Shipping & Trading's Degree of Operating Leverage

For the Marine Shipping subindustry, Genco Shipping & Trading'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.


Genco Shipping & Trading's Degree of Operating Leverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Genco Shipping & Trading's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Genco Shipping & Trading's Degree of Operating Leverage falls into.


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Genco Shipping & Trading Degree of Operating Leverage Calculation

Genco Shipping & Trading'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
=( 57.397 (Mar. 2025) / 14.519 (Mar. 2024) - 1 )/( 376.85 (Mar. 2025) / 406.868 (Mar. 2024) - 1 )
=2.9532/-0.0738
=-40.03***

* 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.


Genco Shipping & Trading  (NYSE:GNK) 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.


Genco Shipping & Trading Degree of Operating Leverage Related Terms

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


Genco Shipping & Trading Business Description

Traded in Other Exchanges
Address
299 Park Avenue, 12th Floor, New York, NY, USA, 10171
Genco Shipping & Trading Ltd is an international shipping company specializing in the transportation of iron ore, coal, grain, steel products and other drybulk cargoes. It is involved in the ocean transportation of drybulk cargoes. The company operates in one segment, with two reportable segment: Major and Minor bulk fleet. It generates revenue through time charter agreements, spot market voyage charters, pool agreements and spot market-related time charters. oyage revenues also include the sale of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement.
Executives
John C Wobensmith officer: Chief Financial Officer 35 WEST 56TH STREET, NEW YORK NY 10019
Peter George Allen officer: Chief Financial Officer GENCO SHIPPING & TRADING LIMITED, 299 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10171
Jesper Christensen officer: Chief Commercial Officer GENCO SHIPPING & TRADING LIMITED, 299 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10171
Joseph Adamo officer: Chief Accounting Officer GENCO SHIPPING & TRADING, 299 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10171
Arthur L Regan director C/O ARLINGTON TANKERS LTD, THE HAYWARD BUILDING 22 BERMUDIANA ROAD, HAMILTON HM 11 D0 --
Robert E Hughes officer: Chief Operations Officer GENCO SHIPPING & TRADING LIMITED, 299 PARK AVE., 12TH FLOOR, NEW YORK NY 10171
Apostolos Zafolias officer: Chief Financial Officer GENCO SHIPPING & TRADING, 299 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10171
Ccp Ii Cayman Gp Ltd. 10 percent owner 375 PARK AVE, 12TH FLOOR, NEW YORK NY 10152
Centerbridge Credit Partners, L.p. 10 percent owner 375 PARK AVENUE, 11TH FLOOR, NEW YORK NY 10152
Karin Y Orsel director HOGELANDSTERWEG 14, FARMSUM P7 9936 BH
Apollo Management Holdings Gp, Llc 10 percent owner 9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Strategic Value Partners, Llc 10 percent owner 100 WEST PUTNAM AVENUE, GREENWICH CT 06830
Daniel Han director GENCO SHIPPING & TRADING LIMITED, 299 PARK AVE., 12TH FLOOR, NEW YORK NY 10171
Kathleen C Haines director P.O. BOX 385, COS COB CT 06807
Christoph O Majeske director 17001 NORTHCHASE DR., STE. 100, HOUSTON TX 77060