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MSEX (Middlesex Water Co) Degree of Operating Leverage : 1.42 (As of Mar. 2025)


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What is Middlesex Water Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Middlesex Water Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.42. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Middlesex Water Co's Degree of Operating Leverage or its related term are showing as below:

MSEX's Degree of Operating Leverage is ranked worse than
57.79% of 488 companies
in the Utilities - Regulated industry
Industry Median: 0.835 vs MSEX: 1.42

Middlesex Water Co Degree of Operating Leverage Historical Data

The historical data trend for Middlesex Water Co'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.

Middlesex Water Co Degree of Operating Leverage Chart

Middlesex Water Co 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 1.61 -3.07 3.29 -6.24 2.82

Middlesex Water Co 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 2.37 3.08 3.58 2.82 1.42

Competitive Comparison of Middlesex Water Co's Degree of Operating Leverage

For the Utilities - Regulated Water subindustry, Middlesex Water Co'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.


Middlesex Water Co's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

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

* The bar in red indicates where Middlesex Water Co's Degree of Operating Leverage falls into.


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Middlesex Water Co Degree of Operating Leverage Calculation

Middlesex Water Co'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
=( 62.582 (Mar. 2025) / 50.97 (Mar. 2024) - 1 )/( 195.654 (Mar. 2025) / 168.642 (Mar. 2024) - 1 )
=0.2278/0.1602
=1.42***

* 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.


Middlesex Water Co  (NAS:MSEX) 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.


Middlesex Water Co Degree of Operating Leverage Related Terms

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


Middlesex Water Co Business Description

Traded in Other Exchanges
N/A
Address
485C Route 1 South, Suite 400, Iselin, NJ, USA, 08830
Middlesex Water Co owns and operates regulated water utility and wastewater systems in the U.S. The firm operates in the eastern states of New Jersey, Delaware, and Pennsylvania. The company has two operating segments, Regulated and Non-Regulated. The regulated business includes collecting and distributing water to residential, commercial, industrial, and fire protection consumers. The non-regulated business includes contract services for the operation of private water and wastewater systems. The majority of the company's revenue is derived from the Regulated segment and from residential customers.
Executives
Walter G Reinhard director PO BOX 1500, ISELIN NJ 08830
Dennis W Doll officer: Executive Vice President 1500 RONSON ROAD, ISELIN NJ 08830
Robert John Capko officer: PAO/Controller 100 POSSUM WAY, NEW PROVIDENCE NJ 07974
Cosgrove James F. Jr. director 492 CHRISTOPHER DRIVE, PRINCETON NJ 08540
Lorrie Beth Ginegaw officer: VP-Corporate Affairs 1500 RONSON ROAD, ISELIN NJ 08830
Bernadette M Sohler officer: VP - Corporate Affairs 1500 RONSON ROAD, ISELIN NJ 08830
Andreasen Christian G. Jr. officer: VP - Enterprise Engineering 485C ROUTE 1 SOUTH, SUITE 400, ISELIN NJ 08830
Kim C Hanemann director 1500 RONSON ROAD, ISELIN NJ 08830
A Bruce Oconnor officer: Vice President &, other: Controller PO BOX 1500, ISELIN NJ 08830
Vaughn L Mckoy director 485C ROUTE ONE SOUTH, SUITE 400, ISELIN NJ 07083
Georgia M Simpson officer: VP-Information Technology 485C ROUTE 1 SOUTH, SUITE 400, ISELIN NJ 08830
Joshua Bershad director 485C ROUTE ONE SOUTH, SUITE 400, ISELIN NJ 07083
Robert K Fullagar officer: Vice President - Operations 485C ROUTE 1 SOUTH, SUITE 400, ISELIN NJ 08830
Ann L. Noble director 485C ROUTE 1 SOUTH, SUITE 400, ISELIN NJ 08830
Jay L Kooper officer: VP, Gen. Counsel & Secretary 1500 RONSON ROAD, ISELIN NJ 08830