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LBRT (Liberty Energy) Degree of Operating Leverage : 6.10 (As of Mar. 2025)


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What is Liberty Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Liberty Energy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LBRT's Degree of Operating Leverage is ranked worse than
79.8% of 906 companies
in the Oil & Gas industry
Industry Median: 0.99 vs LBRT: 6.10

Liberty Energy Degree of Operating Leverage Historical Data

The historical data trend for Liberty 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.

Liberty Energy Degree of Operating Leverage Chart

Liberty 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 5.17 -0.05 -5.30 5.62 4.71

Liberty 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 -0.81 2.78 4.07 4.71 6.10

Competitive Comparison of Liberty Energy's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, Liberty 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.


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

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

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


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Liberty Energy Degree of Operating Leverage Calculation

Liberty 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
=( 357.512 (Mar. 2025) / 654.801 (Mar. 2024) - 1 )/( 4219.497 (Mar. 2025) / 4558.976 (Mar. 2024) - 1 )
=-0.454/-0.0745
=6.10***

* 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.


Liberty Energy  (NYSE:LBRT) 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.


Liberty Energy Degree of Operating Leverage Related Terms

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


Liberty Energy Business Description

Industry
Traded in Other Exchanges
N/A
Address
950 17th Street, Suite 2400, Denver, CO, USA, 80202
Liberty Energy Inc is a integrated energy services and technology company focused on providing hydraulic fracturing services and related technologies to onshore oil and natural gas exploration and production (E&P) companies. The Company offers customers with hydraulic fracturing services, together with complementary services including wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods (including sand mine operations), and technologies to facilitate lower emission completions, thereby helping customers reduce emissions profile. The company provides services across USA and Canada.
Executives
Michael Stock officer: Chief Financial Officer 950 17TH STREET, SUITE 2000, DENVER CO 80202
Christopher A Wright director, officer: Chief Executive Officer 106 ALTA VISTA AVENUE, MILL VALLEY CA 94941
Ken Babcock director 950 17TH STREET, SUITE 2000, DENVER CO 80202
Ryan T Gosney officer: Chief Accounting Officer 950 17TH STREET, SUITE 2000, DENVER CO 80202
Ron Gusek officer: President 950 17TH STREET, SUITE 2000, DENVER CO 80202
R Sean Elliott officer: See Remarks 6565 MACARTHUR BLVD, SUITE 1050, IRVING TX 75039
William F Kimble director 6900 E. LAYTON AVE., SUITE 900, DENVER CO 80237
Cary D. Steinbeck director 950 17TH STREET, SUITE 2000, DENVER CO 80202
Limited/nv Schlumberger 10 percent owner 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Audrey Robertson director BONANZA CREEK ENERGY, INC., 410 - 17TH STREET, SUITE 1400, DENVER CO 80202
Riverstone/carlyle Energy Partners Iv, L.p. director, 10 percent owner C/O RIVERSTONE HOLDINGS LLC, 712 FIFTH AVENUE, 36TH FLOOR, NEW YORK NY 10019
Simon Ayat director C/O SCHLUMBERGER LIMITED, 5999 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
James R Mcdonald director 13126 CONIFER RD, HOUSTON TX 77079
B.v. Schlumberger 10 percent owner 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Schlumberger Holdings Corp 10 percent owner 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056