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PNR (Pentair) Degree of Operating Leverage : -30.74 (As of Mar. 2025)


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What is Pentair Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pentair's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -30.74. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PNR's Degree of Operating Leverage is ranked better than
93.25% of 2934 companies
in the Industrial Products industry
Industry Median: 1.18 vs PNR: -30.74

Pentair Degree of Operating Leverage Historical Data

The historical data trend for Pentair'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.

Pentair Degree of Operating Leverage Chart

Pentair 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 2.05 1.62 -0.44 -48.55 -18.04

Pentair 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 -9.46 -10.13 -12.99 -18.04 -30.74

Competitive Comparison of Pentair's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Pentair'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.


Pentair's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Pentair's Degree of Operating Leverage distribution charts can be found below:

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


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Pentair Degree of Operating Leverage Calculation

Pentair'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
=( 829.4 (Mar. 2025) / 735 (Mar. 2024) - 1 )/( 4076 (Mar. 2025) / 4093.1 (Mar. 2024) - 1 )
=0.1284/-0.0042
=-30.74***

* 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.


Pentair  (NYSE:PNR) 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.


Pentair Degree of Operating Leverage Related Terms

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


Pentair Business Description

Traded in Other Exchanges
Address
70 London Road, Regal House, Twickenham, London, GBR, TW13QS
Pentair is a global leader in the water treatment industry, with 10,000 employees and a presence in 25 countries. Pentair's business is organized into three segments: pool, water technologies, and flow. The company offers a wide range of water solutions, including energy-efficient swimming pool equipment, filtration solutions, and commercial and industrial pumps. Pentair generated approximately $4.1 billion in revenue in 2024.
Executives
Stephen J Pilla officer: EVP Ch Sup Chn Of Ch Trnfrm Of 5500 WAYZATA BLVD., SUITE 900, GOLDEN VALLEY MN 55416
T Michael Glenn director 942 S SHADY GROVE RD, MEMPHIS TN 38120
Philip M. Rolchigo officer: EVP & Chief Technology Officer 5500 WAYZATA BLVD., SUITE 800, GOLDEN VALLEY MN 55416
Jones David A /wi director C/O RAYOVAC CORP, 601 RAYOVAC DR, MADISON WI 53711-2497
Jerome O Pedretti officer: EVP & Pres., Ind. & Flow Tech. 5500 WAYZATA BLVD., SUITE 900, GOLDEN VALLEY MN 55416
Adrian C Chiu officer: EVP & Pres., Water Solutions 5500 WAYZATA BLVD., SUITE 900, GOLDEN VALLEY MN 55416
Tracey Doi director C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
John L Stauch officer: Executive Vice President, CFO 5500 WAYZATA BOULEVARD, SUITE 600, GOLDEN VALLEY MN 55416
Robert P Fishman officer: EVP, CFO & CAO 1700 S. PATTERSON BOULEVARD, DAYTON OH 45479
Tanya L Hooper officer: EVP & Chief HR Officer 5500 WAYZATA BLVD., SUITE 900, GOLDEN VALLEY MN 55416
Demon L Wiggins officer: EVP & Pres., Ind. & Flow Tech. 5500 WAYZATA BLVD, SUITE 900, GOLDEN VALLEY MN 55416
Glynis Bryan director 5500 WAYZATA BOULEVARD, SUITE 600, GOLDEN VALLEY MN 55416
Melissa Barra director 9800 59TH AVENUE NORTH, MINNEAPOLIS MN 55442
John H Jacko officer: SVP & Chief Marketing Officer 1600 TECHNOLOGY WAY, LATROBE PA 15650
Gregory E. Knight director 1111 LOUISIANA STREET #4600, HOUSTON TX 77002