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KGS (Kodiak Gas Services) Degree of Operating Leverage : -0.02 (As of Mar. 2025)


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What is Kodiak Gas Services Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Kodiak Gas Services's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.02. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

KGS's Degree of Operating Leverage is ranked better than
62.71% of 909 companies
in the Oil & Gas industry
Industry Median: 0.95 vs KGS: -0.02

Kodiak Gas Services Degree of Operating Leverage Historical Data

The historical data trend for Kodiak Gas Services'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.

Kodiak Gas Services Degree of Operating Leverage Chart

Kodiak Gas Services Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 2.83 -0.47 0.16

Kodiak Gas Services Quarterly Data
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 0.19 -0.76 -0.60 0.16 -0.02

Competitive Comparison of Kodiak Gas Services's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, Kodiak Gas Services'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.


Kodiak Gas Services's Degree of Operating Leverage Distribution in the Oil & Gas Industry

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

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


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Kodiak Gas Services Degree of Operating Leverage Calculation

Kodiak Gas Services'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
=( 281.989 (Mar. 2025) / 285.168 (Mar. 2024) - 1 )/( 1273.461 (Mar. 2025) / 875.761 (Mar. 2024) - 1 )
=-0.0111/0.4541
=-0.02***

* 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.


Kodiak Gas Services  (NYSE:KGS) 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.


Kodiak Gas Services Degree of Operating Leverage Related Terms

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


Kodiak Gas Services Business Description

Industry
Traded in Other Exchanges
Address
9950 Woodloch Forest Drive, Suite 1900, The Woodlands, TX, USA, 77380
Kodiak Gas Services Inc is an operator of contract compression infrastructure in the United States. It manages business through two operating segments namely Contract Services and Other Services. Contract Services consists of operating Company-owned and customer-owned compression, and gas treating and cooling infrastructure, pursuant to primarily fixed-revenue contracts to enable the production and gathering of natural gas and oil. Other Services consist of a full range of contract services to support the ancillary needs of customers, including station construction, maintenance and overhaul, freight and crane charges, and other time and material-based offerings.
Executives
Eqt Fund Management S.a R.l. 10 percent owner 51A BOULEVARD ROYAL, LUXEMBOURG N4 L-2449
Ewan William Hamilton officer: See Remarks C/O KODIAK GAS SERVICES, INC., 15320 HIGHWAY 105 W, SUITE 210, MONTGOMERY TX 77356
Margaret C Montana director 910 LOUISIANA STREET, HOUSTON TX 77002
Terry Bonno director 7402 NORTH ELDRIDGE PARKWAY, HOUSTON TX 77041
Robert Michael Mckee director, officer: See Remarks C/O KODIAK GAS SERVICES, INC., 15320 HIGHWAY 105 W, SUITE 210, MONTGOMERY TX 77356
Nirav Kush Shah director C/O KODIAK GAS SERVICES, INC., 15320 HIGHWAY 105 W, SUITE 210, MONTGOMERY TX 77356
Christopher Drumgoole director C/O DXC TECHNOLOGY COMPANY, 1775 TYSONS BOOULEVARD, TYSONS VA 22102
Roclawski Cory Anne officer: See Remarks C/O KODIAK GAS SERVICES, INC., 15320 HIGHWAY 105 W, SUITE 210, MONTGOMERY TX 77356
Kelly Michelle Battle officer: See Remarks C/O KODIAK GAS SERVICES, INC., 15320 HIGHWAY 105 W, SUITE 210, MONTGOMERY TX 77356
Jon-al Duplantier director C/O PARKER DRILLING COMPANY, 5 GREENWAY PLAZA, SUITE 100, HOUSTON TX 77046
John Griggs officer: See Remarks C/O RUBICON, 7850 NORTH SAM HOUSTON PARKWAY WEST, HOUSTON TX 77064
William Chad Lenamon officer: See Remarks C/O KODIAK GAS SERVICES, INC., 15320 HIGHWAY 105 W, SUITE 210, MONTGOMERY TX 77356
Randall J Hogan director 5500 WAYZATA BLVD., SUITE 600, GOLDEN VALLEY MN 55416
Frontier Topco Partnership, L.p. 10 percent owner 26A, BOULEVARD ROYAL, LUXEMBOURG N4 L-2449
Teresa Maria Mattamouros director C/O KODIAK GAS SERVICES, INC., 15320 HIGHWAY 105 W, SUITE 210, MONTGOMERY TX 77356