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KOS (Kosmos Energy) Degree of Operating Leverage : 4.82 (As of Mar. 2025)


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What is Kosmos Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Kosmos Energy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

KOS's Degree of Operating Leverage is ranked worse than
77.79% of 905 companies
in the Oil & Gas industry
Industry Median: 0.94 vs KOS: 4.82

Kosmos Energy Degree of Operating Leverage Historical Data

The historical data trend for Kosmos 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.

Kosmos Energy Degree of Operating Leverage Chart

Kosmos 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 6.68 -1.85 8.34 -0.14 6.10

Kosmos 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 1.44 1.56 23.86 6.10 4.82

Competitive Comparison of Kosmos Energy's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, Kosmos 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.


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

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

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


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Kosmos Energy Degree of Operating Leverage Calculation

Kosmos 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
=( 234.943 (Mar. 2025) / 472.865 (Mar. 2024) - 1 )/( 1546.39 (Mar. 2025) / 1726.471 (Mar. 2024) - 1 )
=-0.5031/-0.1043
=4.82***

* 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.


Kosmos Energy  (NYSE:KOS) 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.


Kosmos Energy Degree of Operating Leverage Related Terms

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


Kosmos Energy Business Description

Industry
Traded in Other Exchanges
Address
C/O Kosmos Energy LLC, 8176 Park Lane, Suite 500, Dallas, TX, USA, 75231
Kosmos Energy Ltd is a deepwater exploration and production company focused on meeting the world's growing demand for energy. It has diversified oil and gas production from assets offshore Ghana, Equatorial Guinea, Mauritania, Senegal and the Gulf of America. The Company had operations in four geographic reporting segments: Ghana, Equatorial Guinea, Mauritania/Senegal and the Gulf of America. The majority of revenue is derived from the Ghana segment.
Executives
Christopher James Ball officer: SVP, Business Development C/O KOSMOS ENERGY LTD., 8176 PARK LANE, SUITE 500, DALLAS TX 75231
Andrew G Inglis director, officer: Director and CEO C/O KOSMOS ENERGY, LLC, 8176 PARK LANE, SUITE 500, DALLAS TX 75231
Ronald W. Glass officer: VP & Chief Accounting Officer C/O DAVIS POLK & WARDWELL LLP, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Nealesh D. Shah officer: SVP and CFO C/O KOSMOS ENERGY, LLC, 8176 PARK LANE, SUITE 500, DALLAS TX 75231
Jason Doughty officer: Senior V.P., General Counsel C/O KOSMOS ENERGY, LLC, 8176 PARK LANE, SUITE 500, DALLAS TX 75231
Roy A. Franklin director 8176 PARK LANE, SUITE 500, DALLAS TX 75231
Deanna L Goodwin director 11911 FM 529, HOUSTON TX 77041
Grant John Douglas Kelso director 8176 PARK LANE, SUITE 500, DALLAS TX 75231
Hanssen Maria Moraeus director 5599 SAN FELIPE, 17TH FL, HOUSTON TX 77056
J Michael Stice director 525 CENTRAL PARK DRIVE, OKLAHOMA CITY OK 73105
Dearlove Sir Richard Billing director C/O KOSMOS ENERGY LTD., CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM 11
Richard Ryan Clark officer: SVP, President Gulf of Mexico 501 WHITE WING LANE, HOUSTON TX 77079
Steven Sterin director 19100 RIDGEWOOD PARKWAY, SAN ANTONIO TX 78259
Lisa Ann Davis director 2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Warburg Pincus & Co. director, 10 percent owner 450 LEXINGTON AVENUE, NEW YORK, NY NY 100173147