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HUSA (Houston American Energy) Degree of Operating Leverage : -2.68 (As of Mar. 2025)


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What is Houston American Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Houston American Energy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.68. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HUSA's Degree of Operating Leverage is ranked better than
78.77% of 909 companies
in the Oil & Gas industry
Industry Median: 0.95 vs HUSA: -2.68

Houston American Energy Degree of Operating Leverage Historical Data

The historical data trend for Houston American Energy'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.

Houston American Energy Degree of Operating Leverage Chart

Houston American Energy 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 -1.61 -0.53 -1.02 -2.30 -1.74

Houston American Energy 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 -2.21 -0.09 -0.25 -1.74 -2.68

Competitive Comparison of Houston American Energy's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, Houston American Energy'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.


Houston American Energy's Degree of Operating Leverage Distribution in the Oil & Gas Industry

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

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


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Houston American Energy Degree of Operating Leverage Calculation

Houston American Energy'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
=( -3.225 (Mar. 2025) / -1.848 (Mar. 2024) - 1 )/( 0.514 (Mar. 2025) / 0.712 (Mar. 2024) - 1 )
=0.7451/-0.2781
=-2.68***

* 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.


Houston American Energy  (AMEX:HUSA) 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.


Houston American Energy Degree of Operating Leverage Related Terms

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


Houston American Energy Business Description

Traded in Other Exchanges
Address
801 Travis Street, Suite 1425, Houston, TX, USA, 77002
Houston American Energy Corp is an independent oil and gas company focused on the development, exploration, exploitation, acquisition, and production of natural gas and crude oil properties. Its properties, and operations, are in the U.S. Permian Basin, the U.S. Gulf Coast region, particularly Louisiana, and the South American country of Colombia. Geographically, the company currently has operations in two geographical areas, the United States, from where it derives maximum revenue, and Colombia.
Executives
James A Schoonover director 1770 COUNTY ROAD H2, WHITE BEAR TOWNSHIP MN 55110
John F Terwilliger director, 10 percent owner, officer: President and CEO
Bitnile Holdings, Inc. 10 percent owner 11411 SOUTHERN HIGHLANDS PARKWAY, SUITE 240, LAS VEGAS NV 89141
Dyke Torbjorn Van officer: VP - Business Development 801 TRAVIS STREET, SUITE 1425, HOUSTON TX 77002
R. Keith Grimes director 13307 GOLDEN VALLEY DR., CYPRESS TX 77429
John P Boylan director 450 WESTHEIMER DR., HOUSTON TX 77024
Stephen Hartzell director 1001 MCKINNEY, SUITE 805, HOUSTON TX 77002
Roy W Jageman director 777 MAIN STREET, C/O ENCORE ACQUISITION CO, FORT WORTH TX 76102
James J Jacobs officer: Chief Financial Officer 801 TRAVIS, SUITE 2020, HOUSTON TX 77002
Kenneth Jeffers officer: Senior VP of Exploration 801 TRAVIS STREET, SUITE 1425, HOUSTON TX 77002
Nokomis Capital, L.l.c. 10 percent owner 1717 MCKINNEY AVENUE, SUITE 850, DALLAS TX 75202
Brett Hendrickson 10 percent owner 300 CRESCENT COURT, SUITE 1740, DALLAS TX 75201
Orrie Lee Tawes director, 10 percent owner CIBC OPPENHEIMER WORLD FINANCIAL CENTER, NEW YORK NY 110281
Richard J Howe director 73 SADDLEBROOK LN, HOUSTON TX 77024
J Alex Loftus director 801 TRAVIS, SUITE 1425, HOUSTON TX 77002

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