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OTTR (Otter Tail) Degree of Operating Leverage : 1.92 (As of Mar. 2025)


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What is Otter Tail Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Otter Tail's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.92. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OTTR's Degree of Operating Leverage is ranked worse than
61.13% of 548 companies
in the Conglomerates industry
Industry Median: 1.09 vs OTTR: 1.92

Otter Tail Degree of Operating Leverage Historical Data

The historical data trend for Otter Tail'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.

Otter Tail Degree of Operating Leverage Chart

Otter Tail 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 -3.41 1.93 2.59 -0.25 -1.36

Otter Tail 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 -2.11 -674.06 20.87 -1.36 1.92

Competitive Comparison of Otter Tail's Degree of Operating Leverage

For the Conglomerates subindustry, Otter Tail'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.


Otter Tail's Degree of Operating Leverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Otter Tail's Degree of Operating Leverage distribution charts can be found below:

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


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Otter Tail Degree of Operating Leverage Calculation

Otter Tail'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
=( 396.448 (Mar. 2025) / 417.963 (Mar. 2024) - 1 )/( 1320.833 (Mar. 2025) / 1357.153 (Mar. 2024) - 1 )
=-0.0515/-0.0268
=1.92***

* 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.


Otter Tail  (NAS:OTTR) 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.


Otter Tail Degree of Operating Leverage Related Terms

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


Otter Tail Business Description

Industry
Traded in Other Exchanges
N/A
Address
215 South Cascade Street, P.O. Box 496, Fergus Falls, MN, USA, 56538-0496
Otter Tail Corp is a U.S. energy company that operates in the electric (produces and sells electricity), manufacturing (fabricates metal components), and plastics segments (pipes for water uses). The company conducts its operations and acquires the majority of its revenue in the U.S. in the states of Minnesota, South Dakota, and North Dakota. The majority of the company's revenue is derived from the Electric segment and commercial customers, although it generates revenue from residential and industrial customers, as well.
Executives
Jennifer O. Smestad officer: VP, Gen Coun & Corp Sec 215 S. CASCADE STREET, FERGUS FALLS MN 56537
Paul L Knutson officer: VP of Human Resources 215 S CASCADE ST, FERGUS FALLS MN 56537-2801
John D Erickson director, officer: President & CEO 215 S CASCADE ST, FERGUS FALLS MN 56537
Mary E Ludford director 215 S CASCADE STREET, FERGUS FALLS MN 56537
Jeanne H Crain director 215 S CASCADE STREET, FERGUS FALLS MN 56537
Michael E Lebeau director 215 S CASCADE STREET, FERGUS FALLS MN 56537
Timothy J O'keefe director 215 S CASCADE ST, FERGUS FALLS MN 56537-2801
John S Abbott officer: Pres Varistar, Sr VP, M/I Plat 215 S CASCADE ST, FERGUS FALLS MN 56537-2801
Kevin G Moug officer: CFO & Treasurer 215 S CASCADE ST, FERGUS FALLS MN 56537
Thomas J Webb director ONE ENERGY PLAZA, JACKSON MI 49201
George A Koeck officer: Corp Secretary & Gen Counsel 215 S CASCADE ST, FERGUS FALLS MN 56537
Timothy J Rogelstad officer: Sr VP, Elect Plat; Pres OTP 215 S CASCADE ST, FERGUS FALLS MN 56537-2801
Steven L Fritze director 370 WBASHA ST NORTH, ST PAUL MN 55102
Arvid R Liebe director 215 S CASCADE ST, FERGUS FALLS MN 56537
Kathryn O Johnson director 215 S CASCADE STREET, FERGUS FALLS MN 56537-2801