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NC (NACCO Industries) Degree of Operating Leverage : -11.27 (As of Mar. 2025)


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What is NACCO Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. NACCO Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -11.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NC's Degree of Operating Leverage is ranked better than
95.12% of 123 companies
in the Other Energy Sources industry
Industry Median: 1.06 vs NC: -11.27

NACCO Industries Degree of Operating Leverage Historical Data

The historical data trend for NACCO Industries'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.

NACCO Industries Degree of Operating Leverage Chart

NACCO Industries 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 7.27 5.57 2.05 15.15 -15.33

NACCO Industries 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 22.02 21.24 -223.93 -15.33 -11.27

Competitive Comparison of NACCO Industries's Degree of Operating Leverage

For the Thermal Coal subindustry, NACCO Industries'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.


NACCO Industries's Degree of Operating Leverage Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, NACCO Industries's Degree of Operating Leverage distribution charts can be found below:

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


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NACCO Industries Degree of Operating Leverage Calculation

NACCO Industries'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
=( 39.429 (Mar. 2025) / -59.927 (Mar. 2024) - 1 )/( 249.99 (Mar. 2025) / 217.942 (Mar. 2024) - 1 )
=-1.658/0.147
=-11.27***

* 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.


NACCO Industries  (NYSE:NC) 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.


NACCO Industries Degree of Operating Leverage Related Terms

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


NACCO Industries Business Description

Traded in Other Exchanges
N/A
Address
22901 Millcreek Boulevard, Suite 600, Cleveland, OH, USA, 44122
NACCO Industries Inc is a holding company that operates in the mining and natural resource industries. It has three operating segments that are coal mining, North American mining (NA mining), and minerals management. The majority of its revenue is from the coal mining segment. This segment operates surface coal mines under long-term contracts with power generation companies and an activated carbon producer pursuant to a service-based business model. The NA mining segment provides value-add contract mining and services for producers. Minerals management generates income from royalty-based leases by acquiring and promoting oil, gas, and coal mineral interests. The company is diversifying beyond coal mining due to political and economic pressures associated with carbon emissions.
Executives
Thomas A Maxwell officer: Assistant Treasurer 5875 LANDERBROOK DRIVE, SUITE 220, CLEVELAND OH 44124
Valerie Gentile Sachs director 5555 DARROW RD, HUDSON OH 44236
Trust F/b/o Paige J. Rankin 8/26/2016 other: Member of a Group 103 MARION AVENUE, LAKE FOREST IL 60045
Paige J. Rankin other: Member of a Group 103 MARION AVENUE, FOREST LAKE IL 60045
Miles B Haberer officer: Assoc Gen Counsel & Assist Sec 5340 LEGACY DRIVE, BUILDING 1 SUITE 300, PLANO TX 75024
Butler John C Jr officer: VP-Corp Dev and Treasurer 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Helen Rankin Butler other: Member of a Group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Chloe O Rankin other: Member of a Group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Claiborne R Rankin other: NMHG Dir and Member of Group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
David B Williams other: Member of a group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Clara R Williams other: Member of a group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Roger F Rankin other: Member of a group C/O NACCO INDUSTRIES INC, 5875 LANDERBROOK DRIVE, MAYFIELD HEIGHTS OH 44124
Rankin Alfred M Et Al director, officer: Dir CEO Group Member, other: Dir CEO Group Member 5875 LANDERBROOK DR, MAYFIELD HEIGHTS OH 44124
Rankin Corbin other: Member of a group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124
Alison A Rankin other: Member of a group 5875 LANDERBROOK DRIVE, SUITE 300, MAYFIELD HEIGHTS OH 44124