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KWR (Quaker Houghton) Degree of Operating Leverage : 3.81 (As of Mar. 2025)


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What is Quaker Houghton Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Quaker Houghton's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.81. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

KWR's Degree of Operating Leverage is ranked worse than
73.7% of 1521 companies
in the Chemicals industry
Industry Median: 1.01 vs KWR: 3.81

Quaker Houghton Degree of Operating Leverage Historical Data

The historical data trend for Quaker Houghton'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.

Quaker Houghton Degree of Operating Leverage Chart

Quaker Houghton 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 0.68 8.88 -7.39 826.04 0.65

Quaker Houghton 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 -107.03 -34.59 -20.01 0.65 3.81

Competitive Comparison of Quaker Houghton's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Quaker Houghton'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.


Quaker Houghton's Degree of Operating Leverage Distribution in the Chemicals Industry

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

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


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Quaker Houghton Degree of Operating Leverage Calculation

Quaker Houghton'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
=( 166.369 (Mar. 2025) / 212.739 (Mar. 2024) - 1 )/( 1812.841 (Mar. 2025) / 1922.924 (Mar. 2024) - 1 )
=-0.218/-0.0572
=3.81***

* 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.


Quaker Houghton  (NYSE:KWR) 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.


Quaker Houghton Degree of Operating Leverage Related Terms

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


Quaker Houghton Business Description

Industry
Traded in Other Exchanges
Address
901 East Hector Street, Conshohocken, PA, USA, 19428-2380
Quaker Houghton manufactures and sells a variety of industrial process fluids. The product portfolio of the company includes metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids and surface treatment chemicals. The geographic segments of the company include America, EMEA, Asia/Pacific, and Global Specialty Businesses. The majority of the revenue is earned from America.
Executives
Joseph A Berquist officer: VP & Managing Director - NA QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
David Slinkman officer: SVP - Chief Technology Officer QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Jeewat Bijlani officer: SVP - Managing Director, Ams. QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
William H Osborne director 1415 WEST 22ND STREET, SUITE 1100, OAK BROOK IL 60523
Melissa Leneis officer: SVP, CHRO QUAKER CHEMICAL CORPORATION, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Charlotte C. Decker director QUAKER CHEMICAL CORPORATION, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Anna Ransley officer: SVP, CDIO QUAKER CHEMICAL CORPORATION, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Russell Shaller director 6555 WEST GOOD HOPE RD, MILWAUKEE WI 53223
Jeffry D Frisby director C/O QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 HECTOR STREET, CONSHOHOCKEN PA 19428
Robert T Traub officer: SVP, GC & Corp. Sec. QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
David Will other: VP, Global Controller & PAO QUAKER CHEMICAL CORPORATION, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380
Michael F Barry officer: VP & CFO & Treasurer ONE QUAKER PARK, 901 HECTOR ST, CONSHOHOCHEN PA 19428
Jeffrey L Fleck officer: SVP, Chief GSCO 1310 SEABOARD INDUSTRIAL BLVD, ATLANTA X1 30318
L Wilbert Platzer officer: VP - WWO
Dieter Laininger officer: Vice President - Global Steel QUAKER CHEMICAL CORPORATION, ONE QUAKER PARK, 901 E. HECTOR STREET, CONSHOHOCKEN PA 19428-2380