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MGEE (MGE Energy) Degree of Operating Leverage : -0.02 (As of Mar. 2025)


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What is MGE Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. MGE Energy'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 MGE Energy's Degree of Operating Leverage or its related term are showing as below:

MGEE's Degree of Operating Leverage is ranked better than
64.21% of 489 companies
in the Utilities - Regulated industry
Industry Median: 0.85 vs MGEE: -0.02

MGE Energy Degree of Operating Leverage Historical Data

The historical data trend for MGE 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.

MGE Energy Degree of Operating Leverage Chart

MGE 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 -0.82 -0.08 1.25 -2.19 3.44

MGE 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 -1.14 0.38 1.10 3.44 -0.02

Competitive Comparison of MGE Energy's Degree of Operating Leverage

For the Utilities - Regulated Electric subindustry, MGE 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.


MGE Energy's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, MGE Energy's Degree of Operating Leverage distribution charts can be found below:

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


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MGE Energy Degree of Operating Leverage Calculation

MGE 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
=( 174.938 (Mar. 2025) / 175.168 (Mar. 2024) - 1 )/( 704.578 (Mar. 2025) / 664.514 (Mar. 2024) - 1 )
=-0.0013/0.0603
=-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.


MGE Energy  (NAS:MGEE) 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.


MGE Energy Degree of Operating Leverage Related Terms

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


MGE Energy Business Description

Traded in Other Exchanges
Address
133 South Blair Street, Madison, WI, USA, 53788
MGE Energy provides electric service to 161,000 customers and natural gas service to 173,000 customers in Madison, Wisconsin, and surrounding areas. Nearly 90% of customers are residential. The company also owns a 3.6% stake in American Transmission Co. MGE owns interests in two coal power plants that earn guaranteed fixed rates of return, contributing about 20% of earnings. MGE's generation mix is 40% coal, 21% renewable energy, 17% natural gas, and third-party purchased power.
Executives
James G Berbee director 133 S BLAIR STREET, PO BOX 1231, MADISON WI 53701-1231
Scott Robert Smith officer: VP Bus. Regulatory Strategy 623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
James Jerome Lorenz officer: VP Business Operations 623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Noble Lynnwood Wray director 623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Lynn K Hobbie officer: Exec VP Marketing & Corp Comm 133 SOUTH BLAIR ST, P.O. BOX 1231, MADISON WI 53701-1231
Gary J Wolter director 133 SOUTH BLAIR ST., P.O. BOX 1231, MADISON WI 53701-1231
Cari Anne Renlund officer: VP and General Counsel 133 S BLAIR STREET, PO BOX 1231, MADISON WI 53701-1231
James L Possin director 133 SOUTH BLAIR STREET, P.O. BOX 1231, MADISON WI 53701-1231
Tamara Jean Johnson officer: VP Accounting and Controller 623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Jared Joseph Bushek officer: VP Finance, CIO & Treasurer 623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Marcia M Anderson director 133 S BLAIR STREET, PO BOX 1231, MADISON WI 53701-1231
Jeffrey M Keebler officer: Sr. VP-Energy Supply & Plan 133 S BLAIR ST, PO BOX 1231, MADISON WI 53701-1231
Regina M Millner director 133 SOUTH BLAIR ST, P.O. BOX 1231, MADISON WI 53701-1231
Donald D Peterson officer: VP - Energy Technology 133 S. BLAIR ST, PO BOX 1231, MADISON WI 53701-1231
Thomas R Stolper director 133 SOUTH BLAIR STREET, POST OFFICE BOX 1231, MADISON WI 53701-1231