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NTIC (Northern Technologies International) Degree of Operating Leverage : -9.30 (As of Feb. 2025)


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What is Northern Technologies International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Northern Technologies International's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was -9.30. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NTIC's Degree of Operating Leverage is ranked better than
87.11% of 1521 companies
in the Chemicals industry
Industry Median: 1 vs NTIC: -9.30

Northern Technologies International Degree of Operating Leverage Historical Data

The historical data trend for Northern Technologies 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.

Northern Technologies International Degree of Operating Leverage Chart

Northern Technologies International Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.31 -0.21 0.25 -4.37 4.97

Northern Technologies International Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 8.44 12.82 4.97 2.10 -9.30

Competitive Comparison of Northern Technologies International's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Northern Technologies 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.


Northern Technologies International's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Northern Technologies International's Degree of Operating Leverage distribution charts can be found below:

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


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Northern Technologies International Degree of Operating Leverage Calculation

Northern Technologies International's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 6.478 (Feb. 2025) / 8.054 (Feb. 2024) - 1 )/( 84.445 (Feb. 2025) / 82.705 (Feb. 2024) - 1 )
=-0.1957/0.021
=-9.30***

* 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.


Northern Technologies International  (NAS:NTIC) 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.


Northern Technologies International Degree of Operating Leverage Related Terms

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Northern Technologies International Business Description

Traded in Other Exchanges
N/A
Address
4201 Woodland Road, P.O. Box 69, Circle Pines, MN, USA, 55014
Northern Technologies International Corp, or NTIC is a United States-based firm that develops and markets environmentally beneficial products and services world-wide either directly or through a network of joint ventures, distributors, and agents. It operates through two segments which include ZERUST products and services and Nature-Tec products. Its main business is providing corrosion prevention solutions that are marketed under the ZERUST brand. The company also sells a portfolio of bio-based and biodegradable (compostable) polymer resin compounds and finished products marketed under the Nature-Tec brand. The ZERUST brand generates a vast majority of the revenue for the company.
Executives
Falkenhausen Konstantin Von director 4201 WOODLAND ROAD, PO BOX 69, CIRCLE PINES MN 55014
Nancy E. Calderon director 1285 WAKEFIELD TRAIL, RENO NV 89523
Sarah E. Kemp director 4201 WOODLAND ROAD, PO BOX 69, CIRCLE PINES MN 55014
Richard Nigon director CEDAR POINT CAPITAL, 150 SOUTH 5TH STREET, MINNEAPOLIS MN 55402
Pinho Cristina Lucia Duarte director 4201 WOODLAND ROAD, PO BOX 69, CIRCLE PINES MN 55014
Barbara D. Colwell director 4201 WOODLAND ROAD, CIRCLE PINES MN 55014
G Patrick Lynch director 4201 WOODLAND ROAD, CIRCLE PINES MN 55014
Pierre Chenu director 118B AVENUE W CHURCHILL, PO BOX 15, BRUSSELS C9 1180
Mark J Stone director 689 5TH AVENUE, 14TH FLOOR, NEW YORK NY 10022
Inter Alia Holding Co 10 percent owner
Juliane I Lynch 10 percent owner 23205 MERCANTILE ROAD, BEACHWOOD OH 44122
Tilman Bernhard Frank director 4201 WOODLAND ROAD, POST OFFICE BOX 69, CIRCLE PINES MN 55014
Koh Soo Keong director 4201 WOODLAND ROAD, POST OFFICE BOX 69, CIRCLE PINES MN 55014
Ramani Narayan director 4275 CONIFER CIRCLE, OKEMOS MI 48864
Sunggyu Lee director 4912 MCKENNA CT, COLUMBIA MO 65203