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NPKI (NPK International) Degree of Operating Leverage : 19.18 (As of Mar. 2025)


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What is NPK International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. NPK International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 19.18. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NPKI's Degree of Operating Leverage is ranked worse than
93.02% of 903 companies
in the Oil & Gas industry
Industry Median: 0.9 vs NPKI: 19.18

NPK International Degree of Operating Leverage Historical Data

The historical data trend for NPK International'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.

NPK International Degree of Operating Leverage Chart

NPK International 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 20.73 -3.57 2.27 2.89 -0.49

NPK International 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 1.45 0.44 -0.07 -0.49 19.18

Competitive Comparison of NPK International's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, NPK International'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.


NPK International's Degree of Operating Leverage Distribution in the Oil & Gas Industry

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

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


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NPK International Degree of Operating Leverage Calculation

NPK International'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
=( 39.44 (Mar. 2025) / 25.499 (Mar. 2024) - 1 )/( 345.517 (Mar. 2025) / 335.94 (Mar. 2024) - 1 )
=0.5467/0.0285
=19.18***

* 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.


NPK International  (NYSE:NPKI) 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.


NPK International Degree of Operating Leverage Related Terms

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


NPK International Business Description

Industry
Traded in Other Exchanges
N/A
Address
99320 Lakeside Boulevard, Suite 100, The Woodlands, TX, USA, 77381
NPK International Inc is a temporary worksite access solutions company that manufactures, sells, and rents recyclable composite matting products, along with a full suite of services, including planning, logistics, and site restoration. The company generates majority of revenue from the rental of recyclable composite matting systems, along with related site construction and services to customers in various markets including power transmission, oil and natural gas exploration and production, pipeline, renewable energy, petrochemical, construction and other industries within the United States and United Kingdom.
Executives
John C Minge director 9320 LAKESIDE BOULEVARD, SUITE 100, THE WOODLANDS TX 77381
Claudia Michel Meer director 5425 WICKFORD DRIVE, NORTH BETHESDA MD 20852
Mary Celeste Fruge officer: VP, General Counsel 9320 LAKESIDE BOULEVARD, SUITE 100, THE WOODLANDS TX 77381
Michael A Lewis director 77 BEALE ST, P.O. BOX 770000, SAN FRANCISCO CA 94177
Donald Win Young director 3311 DEL MONTE DRIVE, HOUSTON TX 77019
Gregg Piontek officer: VP, Controller, PAO 2700 RESEARCH FOREST DRIVE, SUITE 100, THE WOODLANDS TX 77381
Edward Chipman Earle officer: VP and Special Advisor to CEO 2103 CITY WEST BLVD., 4TH FLOOR, HOUSTON TX 77042
Matthew Lanigan officer: VP and Pres of NMIS 9320 LAKESIDE BOULEVARD, SUITE 100, THE WOODLANDS TX 77381
Lori Briggs officer: VP & President, Industrial 9320 LAKESIDE BOULEVARD, SUITE 100, THE WOODLANDS TX 77381
Paul L Howes director, officer: President and CEO 9320 LAKESIDE BOULEVARD, SUITE 100, THE WOODLANDS TX 77381
Douglas L White officer: Controller, CAO, PAO 2700 RESEARCH FOREST DRIVE, SUITE 100, THE WOODLANDS TX 77381
David A Paterson officer: VP & President, Fluid Systems 9320 LAKESIDE BOULEVARD, SUITE 100, THE WOODLANDS TX 77381
Bruce Campbell Smith officer: VP & Pres, Drilling Fluids 9320 LAKESIDE BOULEVARD, SUITE 100, THE WOODLANDS TX 77381
David C Anderson director 9320 LAKESIDE BOULEVARD, SUITE 100, THE WOODLANDS TX 77381
Mark J Airola officer: Vice President, General Counse 9320 LAKESIDE BOULEVARD, SUITE 100, THE WOODLANDS TX 77381