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NESR (National Energy Services Reunited) Degree of Operating Leverage : 4.14 (As of Mar. 2025)


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What is National Energy Services Reunited Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. National Energy Services Reunited's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.14. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NESR's Degree of Operating Leverage is ranked worse than
73.93% of 909 companies
in the Oil & Gas industry
Industry Median: 0.95 vs NESR: 4.14

National Energy Services Reunited Degree of Operating Leverage Historical Data

The historical data trend for National Energy Services Reunited'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.

National Energy Services Reunited Degree of Operating Leverage Chart

National Energy Services Reunited Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -1.39 -39.37 - - 2.18

National Energy Services Reunited Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Dec22 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 - 1.56 1.24 2.18 4.14

Competitive Comparison of National Energy Services Reunited's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, National Energy Services Reunited'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.


National Energy Services Reunited's Degree of Operating Leverage Distribution in the Oil & Gas Industry

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

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


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National Energy Services Reunited Degree of Operating Leverage Calculation

National Energy Services Reunited'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
=( 132.2 (Mar. 2025) / 92.391 (Mar. 2024) - 1 )/( 1307.958 (Mar. 2025) / 1184.763 (Mar. 2024) - 1 )
=0.4309/0.104
=4.14***

* 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.


National Energy Services Reunited  (NAS:NESR) 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.


National Energy Services Reunited Degree of Operating Leverage Related Terms

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


National Energy Services Reunited Business Description

Traded in Other Exchanges
N/A
Address
777 Post Oak Boulevard, Suite 730, 7th Floor, Houston, TX, USA, 77056
National Energy Services Reunited Corp is a British Virgin Islands-based company engaged in providing products and services to the oil and gas industry in the Middle East and North Africa and the Asia Pacific regions. The company has two reportable segments: Production Services including coil tubing, stimulation, and pumping, nitrogen services, completions, pipelines, cementing, laboratory services and filtration services; and Drilling and Evaluation Services including drilling and workover rigs, rig services, services, and well-testing services among others. Revenues are majorly derived from production services of an oil or natural gas well. It derives maximum revenue from Production services segment.
Executives
Melissa Cougle officer: Chief Financial Officer 777 POST OAK BLVD., 7TH FLOOR, HOUSTON TX 77056
Adnan Ghabris director PO BOX 346036 DUBAI C0 00000
Al Noaimi Salem Rashed Abdulla Ali director AERCAP HOUSE, 65 ST. STEPHEN'S GREEN, DUBLIN L2 2
Capital Pjsc Waha 10 percent owner LEVEL 42, TOWER 3, ETIHAD TOWERS PO BOX 28922 ABU DHABI C0 00000
Thomas D Wood director, 10 percent owner, officer: CFO NATIONAL ENERGY SERVICES REUNITED CORP., 777 POST OAK BLVD, HOUSTON TX 77056
Campo Mejia Antonio J director NATIONAL ENERGY SERVICES REUNITED CORP. 777 POST OAK BLVD. HOUSTON TX 77056
Waha Energy Ltd 10 percent owner C/O MAPLES CORPORATE SERVICES LIMITED PO BOX 309, UGLAND HOUSE GRAND CAYMAN E9 KY1-1104
Nesr Spv Ltd 10 percent owner C/O MAPLES CORPORATE SERVICES LIMITED PO BOX 309, UGLAND HOUSE GRAND CAYMAN E9 KY1-1104
Olayan Saudi Holding Co 10 percent owner P.O. BOX 8772, OLAYAN CENTER, AHSAA STREET RIYADH T0 11492
Olayan Financing Co Ltd. 10 percent owner P.O. BOX 8772, OLAYAN CENTER, AHSAA STREET RIYADH T0 11492
Christine J Morris officer: Chief Financial Officer NATIONAL ENERGY SERVICES REUNITED CORP. 777 POST OAK BLVD., 7TH FLOOR HOUSTON TX 77056
Olayan International Ltd 10 percent owner C/O 111 POSEIDONOS AVE., GLYFADA ATHENS J3 166 10
Olayan Investments Co Establishment 10 percent owner 111 POSEIDONOS AVENUE GLYFADA ATHENS J3 166 10
Sherif Foda director, 10 percent owner, officer: CEO C/O SCHLUMBERGER LIMITED, 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Nesr Holdings Ltd. 10 percent owner RITTER HOUSE WICKHAMS CAY II, ROAD TOWN TORTOLA D8 VG1110