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NCSM (NCS Multistage Holdings) Degree of Operating Leverage : -1.89 (As of Mar. 2025)


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What is NCS Multistage Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. NCS Multistage Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.89. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for NCS Multistage Holdings's Degree of Operating Leverage or its related term are showing as below:

NCSM's Degree of Operating Leverage is ranked better than
76.7% of 910 companies
in the Oil & Gas industry
Industry Median: 0.945 vs NCSM: -1.89

NCS Multistage Holdings Degree of Operating Leverage Historical Data

The historical data trend for NCS Multistage Holdings'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.

NCS Multistage Holdings Degree of Operating Leverage Chart

NCS Multistage Holdings 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 -7.19 -8.71 -3.67 90.57 -29.39

NCS Multistage Holdings 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 20.08 30.95 -58.99 -29.39 -1.89

Competitive Comparison of NCS Multistage Holdings's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, NCS Multistage Holdings'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.


NCS Multistage Holdings's Degree of Operating Leverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where NCS Multistage Holdings's Degree of Operating Leverage falls into.


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NCS Multistage Holdings Degree of Operating Leverage Calculation

NCS Multistage Holdings'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
=( 10.697 (Mar. 2025) / 16.27 (Mar. 2024) - 1 )/( 168.704 (Mar. 2025) / 142.775 (Mar. 2024) - 1 )
=-0.3425/0.1816
=-1.89***

* 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.


NCS Multistage Holdings  (NAS:NCSM) 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.


NCS Multistage Holdings Degree of Operating Leverage Related Terms

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


NCS Multistage Holdings Business Description

Traded in Other Exchanges
Address
19350 State Highway 249, Suite 600, Houston, TX, USA, 77070
NCS Multistage Holdings Inc is a provider of engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides its products and services to exploration and production companies for use in onshore wells, predominantly wells that have been drilled with horizontal laterals in unconventional oil and natural gas formations. The company's offering is its fracturing systems products and services, which enable efficient pinpoint stimulation: the process of individually stimulating each entry point into a formation targeted by an oil or natural gas well. It sell products and services in North America and in selected international markets.
Executives
Valerie A Mitchell director 4 WATERWAY SQUARE PLACE, SUITE 100, THE WOODLANDS TX 77380
Dewayne Williams officer: VP, Controller 1800 WEST LOOP SOUTH, SUITE 1500, HOUSTON TX 77027
Marty Stromquist director, officer: President and Director C/O NCS MULTISTAGE, LLC, 19450 STATE HIGHWAY 249, SUITE 200, HOUSTON TX 77070
Michael L Morrison officer: Chief Financial Officer 4203 YOAKUM BLVD, SUITE 100, HOUSTON TX 77042
Robert Nipper director, officer: CEO and Director C/O NCS MULTISTAGE, LLC, 19450 STATE HIGHWAY 249, SUITE 200, HOUSTON TX 77070
Ori Lev officer: Executive VP, GC and Secretary 3817 BROWNING STREET, HOUSTON TX 77005
Lori A Cole officer: Vice President, Finance 2010 MASON STREET, HOUSTON TX 77006
Ryan Hummer officer: Chief Financial Officer C/O NCS MULTISTAGE, LLC, 19450 STATE HIGHWAY 249, SUITE 200, HOUSTON TX 77070
Franklin Myers director C/O CAMERON INT'L CORPORATION, 1333 WEST LOOP S. #1700, HOUSTON TX 77027
Kevin Trautner officer: Executive VP, GC and Secretary C/O NCS MULTISTAGE, LLC, 19450 STATE HIGHWAY 249, SUITE 200, HOUSTON TX 77070
James Gambrell King officer: Chief Strategy Officer 3402 SYCAMORE SHADOWS, KINGWOOD TX 77339
John D Deane director 1330 POST OAK BLVD, STE 2700, HOUSTON TX 77056
Michael Mcshane director 1330 POST OAK BLVD, STE 2700, HOUSTON TX 77056
Wade Bitter officer: CAO and Treasurer C/O NCS MULTISTAGE, LLC, 19450 STATE HIGHWAY, SUITE 200, HOUSTON TX 77070
Tim Willems officer: Chief Operations Officer C/O NCS MULTISTAGE, LLC, 19450 STATE HIGHWAY 249, SUITE 200, HOUSTON TX 77070