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OC (Owens-Corning) Degree of Operating Leverage : -1.27 (As of Mar. 2025)


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What is Owens-Corning Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Owens-Corning's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Owens-Corning's Degree of Operating Leverage or its related term are showing as below:

OC's Degree of Operating Leverage is ranked better than
75.73% of 1673 companies
in the Construction industry
Industry Median: 1 vs OC: -1.27

Owens-Corning Degree of Operating Leverage Historical Data

The historical data trend for Owens-Corning'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.

Owens-Corning Degree of Operating Leverage Chart

Owens-Corning 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 79.92 -61.63 1.33 3.78 -3.24

Owens-Corning 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 4.29 14.98 -1.63 -3.24 -1.27

Competitive Comparison of Owens-Corning's Degree of Operating Leverage

For the Building Products & Equipment subindustry, Owens-Corning'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.


Owens-Corning's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Owens-Corning's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Owens-Corning's Degree of Operating Leverage falls into.


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Owens-Corning Degree of Operating Leverage Calculation

Owens-Corning'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
=( 1132 (Mar. 2025) / 1509 (Mar. 2024) - 1 )/( 11205 (Mar. 2025) / 9363 (Mar. 2024) - 1 )
=-0.2498/0.1967
=-1.27***

* 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.


Owens-Corning  (NYSE:OC) 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.


Owens-Corning Degree of Operating Leverage Related Terms

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


Owens-Corning Business Description

Industry
Traded in Other Exchanges
Address
One Owens Corning Parkway, Toledo, OH, USA, 43659
Owens-Corning Inc is a manufacturer of glass fiber utilized in composites and building materials. It has an integrated business model with four reportable segments: Composites, Insulation, Doors, and Roofing. It generates maximum revenue from the Roofing segment. Its Roofing segment laminate and strip asphalt roofing shingles, roofing components, synthetic packaging materials, and oxidized asphalt. It meets the growing demand for longer-lasting, aesthetically attractive laminate products with modest capital investment. Geographically the company generates the majority of its revenue from the United States.
Executives
W Howard Morris director 1538 STRATHCONA, DETROIT MI 48203
Jose Mendez-andino officer: EVP, Chief R&D Officer ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Todd W Fister officer: President, Insulation ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Gina A. Beredo officer: EVP, GC and Secretary C/O OWENS CORNING, ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Monaco Nicolas Del officer: President, Insulation ONE OWENS CORNING PKWY, TOLEDO OH 43659
Gunner Smith officer: President, Roofing ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Marcio A Sandri officer: President, Composites ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Mari Doerfler officer: Vice President and Controller ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Paula Russell officer: SVP, Chief HR Officer ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Brian Chambers officer: President, Roofing and Asphalt ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Kelly Schmidt officer: Vice President and Controller ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Daniel T Smith officer: Sr. VP Organization & Admin OWENS CORNING, ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Paul Edward Martin director C/O UNISYS CORPORATION, 801 LAKEVIEW DRIVE, SUITE 100, BLUE BELL PA 19422
Alfred E Festa director
Kenneth Scott Parks officer: Sr. VP&Chief Financial Officer ONE OWENS CORNING PARKWAY, TOLEDO OH 43659