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HWKN (Hawkins) Degree of Operating Leverage : 2.27 (As of Mar. 2025)


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What is Hawkins Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hawkins's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HWKN's Degree of Operating Leverage is ranked worse than
65.11% of 1522 companies
in the Chemicals industry
Industry Median: 1.01 vs HWKN: 2.27

Hawkins Degree of Operating Leverage Historical Data

The historical data trend for Hawkins'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.

Hawkins Degree of Operating Leverage Chart

Hawkins Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.64 0.82 1.11 -11.77 2.27

Hawkins 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 -11.77 -12.12 -225.31 4.06 2.27

Competitive Comparison of Hawkins's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Hawkins'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.


Hawkins's Degree of Operating Leverage Distribution in the Chemicals Industry

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

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


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Hawkins Degree of Operating Leverage Calculation

Hawkins'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
=( 119.815 (Mar. 2025) / 105.427 (Mar. 2024) - 1 )/( 974.431 (Mar. 2025) / 919.162 (Mar. 2024) - 1 )
=0.1365/0.0601
=2.27***

* 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.


Hawkins  (NAS:HWKN) 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.


Hawkins Degree of Operating Leverage Related Terms

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


Hawkins Business Description

Industry
Traded in Other Exchanges
Address
2381 Rosegate, Roseville, MN, USA, 55113
Hawkins Inc manufactures and sells a variety of chemicals and ingredients. The firm organizes itself into three segments based on the product type. The industrial segment, which generates the majority of revenue, sells private label bleach, caustic soda, sulfuric acid, hydrochloric acid, phosphoric acid, potassium hydroxide, and aqua ammonia. The water treatment segment sells chemicals and equipment used to treat potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool water. The health and nutrition segment sells ingredients to food, beverage, personal care, and dietary supplement producers.
Executives
James A Faulconbridge director 3100 EAST HENNEPIN AVENUE, MINNEAPOLIS MN 55413
Jeffrey P. Oldenkamp officer: CFO, VP and Treasurer 14000 TECHNOLOGY DRIVE, EDEN PRAIRIE MN 55344
Jeffrey E Spethmann director P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
David J. Mangine officer: VP - Industrial Group 2381 ROSEGATE, ROSEVILLE MN 55113
Yi Tang director 2381 ROSEGATE, ROSEVILLE MN 55113
Theresa R Moran officer: VP - Quality & Support 3100 EAST HENNEPIN AVENUE, MINNEAPOLIS MN 55413
Douglas A. Lange officer: Vice President 2381 ROSEGATE, ROSEVILLE MN 55113
Shirley A. Rozeboom officer: VP Health and Nutrition 2381 ROSEGATE, ROSEVILLE MN 55113
Daniel J Stauber director 2381 ROSEGATE, ROSEVILLE MN 55113
Drew M. Grahek officer: Vice President of Operations 2381 ROSEGATE, ROSEVILLE MN 55113
Patrick H. Hawkins officer: President 3100 EAST HENNEPIN AVENUE, MINNEAPOLIS MN 55413
Jeffrey L Wright director
Matthews Steven D Ii officer: VP of Operations 3100 E HENNEPIN AVENUE, MINNEAPOLIS MN 55413
Mary J. Schumacher director 3735 ISLAND VIEW CIRCLE, PRIOR LAKE MN 55372
Richard G Erstad officer: VP, General Counsel & Sec 1300 NICOLLET MALL, SUITE 5003, MINNEAPOLIS MN 55403