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Orion (OEC) Degree of Operating Leverage : 24.94 (As of Mar. 2025)


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What is Orion Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Orion's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 24.94. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OEC's Degree of Operating Leverage is ranked worse than
91.06% of 1521 companies
in the Chemicals industry
Industry Median: 1.04 vs OEC: 24.94

Orion Degree of Operating Leverage Historical Data

The historical data trend for Orion'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.

Orion Degree of Operating Leverage Chart

Orion 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 2.44 6.84 -0.38 -1.29 60.11

Orion 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 1.67 9.43 -40.51 60.11 24.94

Competitive Comparison of Orion's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Orion'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.


Orion's Degree of Operating Leverage Distribution in the Chemicals Industry

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

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


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Orion Degree of Operating Leverage Calculation

Orion'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
=( 81.1 (Mar. 2025) / 191.3 (Mar. 2024) - 1 )/( 1852.3 (Mar. 2025) / 1896.1 (Mar. 2024) - 1 )
=-0.5761/-0.0231
=24.94***

* 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.


Orion  (NYSE:OEC) 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.


Orion Degree of Operating Leverage Related Terms

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


Orion Business Description

Industry
Traded in Other Exchanges
N/A
Address
1700 City Plaza Drive, Suite 300, Spring, TX, USA, 77389
Orion SA is a manufacturer of carbon black products. Carbon black is a powdered form of carbon used to create the desired physical, electrical and optical qualities of various materials. The company's operating segments are Specialty Carbon Black and Rubber Carbon Black. It generates maximum revenue from the Rubber Carbon Black segment. Rubber Carbon Black segment is used in the reinforcement of rubber in tires and mechanical rubber goods. The Specialty Carbon Black segment is used as pigments and performance additives in coatings, polymers, printing and special applications. Geographically, it derives a majority of its revenue from Germany.
Executives
Carlos Quinones officer: Sr. VP Global Operations C/O ORION ENGINEERED CARBONS S.A., 4501 MAGNOLIA COVE DRIVE SUITE 106, HOUSTON TX 77345
Painter Corning F. director, officer: Chief Executive Officer 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195-1501
Dan F Smith director 1221 MCKINNEY STREET, SUITE 700, HOUSTON TX 77010
Jeffrey Glajch officer: Chief Financial Officer GRAHAM CORPORATION, 20 FLORENCE AVENUE, BATAVIA NY 14020
Sandra Niewiem officer: Sr. VP Global Specialties C/O ORION ENGINEERED CARBONS S.A., 4501 MAGNOLIA COVE DRIVE SUITE 106, HOUSTON TX 77345
Robert G. Hrivnak officer: Chief Accounting Officer C/O ORION ENGINEERED CARBONS S.A., 4501 MAGNOLIA COVE DRIVE, SUITE 106, HOUSTON TX 77345
Anthony Lynn Davis director C/O CONVENE, 530 FIFTH AVENUE, SUITE 702, NEW YORK NY 10036
Didier Miraton director C/O ORION ENGINEERED CARBONS S.A., 4501 MAGNOLIA COVE DRIVE SUITE 106, HOUSTON TX 77345
Hans Dietrich Winkhaus director C/O ORION ENGINEERED CARBONS S.A., 4501 MAGNOLIA COVE DRIVE SUITE 106, HOUSTON TX 77345
Yi Hyon Paik director ROHM AND HAAS COMPANY, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106
Michel Wurth director C/O ORION ENGINEERED CARBONS S.A., 4501 MAGNOLIA COVE DRIVE, SUITE 106, HOUSTON TX 77345
Pedro Riveros officer: Sr. VP Global Rubber C/O ORION ENGINEERED CARBONS S.A., 4501 MAGNOLIA COVE DRIVE SUITE 106, HOUSTON TX 77345
Paul E Huck director 7201 HAMILTON BLVD, ALLENTOWN PA 181951501
Kerry A Galvin director 1221 MCKINNEY ST.,, SUITE 700, HOUSTON TX 77010
Mary A Lindsey director 6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039