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HXL (Hexcel) Degree of Operating Leverage : 6.97 (As of Mar. 2025)


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What is Hexcel Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hexcel's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.97. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HXL's Degree of Operating Leverage is ranked worse than
87.01% of 308 companies
in the Aerospace & Defense industry
Industry Median: 1.05 vs HXL: 6.97

Hexcel Degree of Operating Leverage Historical Data

The historical data trend for Hexcel'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.

Hexcel Degree of Operating Leverage Chart

Hexcel 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 2.67 -27.70 10.91 -1.70 4.63

Hexcel 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 -4.02 -3.94 -4.19 4.63 6.97

Competitive Comparison of Hexcel's Degree of Operating Leverage

For the Aerospace & Defense subindustry, Hexcel'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.


Hexcel's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Hexcel's Degree of Operating Leverage distribution charts can be found below:

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


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Hexcel Degree of Operating Leverage Calculation

Hexcel'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
=( 177 (Mar. 2025) / 133.8 (Mar. 2024) - 1 )/( 1887.2 (Mar. 2025) / 1803.6 (Mar. 2024) - 1 )
=0.3229/0.0464
=6.97***

* 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.


Hexcel  (NYSE:HXL) 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.


Hexcel Degree of Operating Leverage Related Terms

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


Hexcel Business Description

Traded in Other Exchanges
Address
281 Tresser Boulevard, Two Stamford Plaza, 16th Floor, Stamford, CT, USA, 06901
Founded in 1948, Hexcel designs and manufactures a range of highly engineered composite fibers, fabrics, resins, and structures for use in the commercial aerospace, defense, and high-performance automotive markets. These are lighter than metal and perform under rigorous conditions in aircraft frames, wings, engines, and other components and subassemblies. The company's name derives from the six-sided honeycomb structures that lend many of its products their light weight and rigidity. Hexcel's biggest customers are Airbus (38% of 2022 sales) and Boeing (25% of prepandemic sales) and their respective subcontractors.
Executives
Thierry Merlot officer: See Remarks C/O HEXCEL CORPORATION, 281 TRESSER BLVD., STAMFORD CT 06901--326
Gail E Lehman officer: See Remarks 801 CRESCENT CENTRE DRIVE, SUITE 600, FRANKLIN TN 37067
Catherine A Suever director 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Guy C Hachey director 5725 DELPHI DRIVE, TROY MI 48098
Cynthia M Egnotovich director
Nick L Stanage officer: President 20807 DECATUR STREET, CASSOPOLIS MI 49031
Jeffrey C Campbell director 4333 AMON CARTER BLVD, FORT WORTH TX 76155
Gina Fitzsimons officer: See Remarks C/O HEXCEL CORPORATION, TWO STAMFORD PLAZA, 281 TRESSER BLVD., STAMFORD CT 06901
Marilyn Minus director C/O NORTHEASTERN UNIVERSITY, 360 HUNTINGTON AVENUE, MIE DEPT., 334SN, BOSTON MA 2115-5000
Philippe Chevrier officer: See Remarks C/O HEXCEL CORPORATION, TWO STAMFORD PLAZA, 281 TRESSER BLVD., STAMFORD CT 06901
Robert George Hennemuth officer: See Remarks C/O HEXCEL CORPORATION, 281 TRESSER BLVD. 16TH FLOOR, STAMFORD CT 06901
Amy S Evans officer: See Remarks 2701 SPRUCE STREET, QUINCY IL 62301
Kimberly A. Hendricks officer: SVP, Corp. Controller & CAO 521 WEST 57TH STREET, NEW YORK NY 10019
Brett Raymond Schneider officer: President - Global Fibers C/O HEXCEL CORPORATION, 281 TRESSER BLVD., 16TH FLOOR, STAMFORD CT 06901
Timothy Swords officer: President, Industrial C/O HEXCEL CORPORATION, 281 TRESSER BLVD., STAMFORD CT 06901-3261