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PRM (Perimeter Solutions) Degree of Operating Leverage : 14.24 (As of Mar. 2025)


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What is Perimeter Solutions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Perimeter Solutions's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 14.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PRM's Degree of Operating Leverage is ranked worse than
88.03% of 1521 companies
in the Chemicals industry
Industry Median: 1 vs PRM: 14.24

Perimeter Solutions Degree of Operating Leverage Historical Data

The historical data trend for Perimeter Solutions'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.

Perimeter Solutions Degree of Operating Leverage Chart

Perimeter Solutions Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -25.12 - 7.87 2.47 -1.43

Perimeter Solutions Quarterly Data
Dec19 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 32.69 -4.98 -3.07 -1.43 14.24

Competitive Comparison of Perimeter Solutions's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Perimeter Solutions'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.


Perimeter Solutions's Degree of Operating Leverage Distribution in the Chemicals Industry

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

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


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Perimeter Solutions Degree of Operating Leverage Calculation

Perimeter Solutions'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
=( 148.605 (Mar. 2025) / 13.522 (Mar. 2024) - 1 )/( 573.954 (Mar. 2025) / 337.294 (Mar. 2024) - 1 )
=9.9899/0.7016
=14.24***

* 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.


Perimeter Solutions  (NYSE:PRM) 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.


Perimeter Solutions Degree of Operating Leverage Related Terms

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


Perimeter Solutions Business Description

Traded in Other Exchanges
Address
8000 Maryland Avenue, Suite 350, Clayton, MO, USA, 63105
Perimeter Solutions Inc is a solutions provider for the Fire Safety and Specialty Products industries. The Company's products and operations are managed and reported in two operating segments. Its Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services typically offered in conjunction with the Company's retardant and foam products. The Specialty Products segment includes operations that develop, produce and market products for non-fire safety markets. Specialty Products segment is Phosphorus Pentasulfide (P2S5) based lubricant additives. P2S5 is also used in pesticide and mining chemicals applications, and emerging electric battery technologies.
Executives
Vivek Raj director, officer: Chief Financial Officer 1000 LOUISIANA STREET, SUITE 3850, HOUSTON TX 77002
Tracy Britt Cool director C/O BERKSHIRE HATHAWAY INC., 3555 FARNAM STREET, OMAHA NE 68131
Khouri Haitham director, officer: Chief Executive Officer C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Windacre Partnership Master Fund, Lp 10 percent owner 2200 POST OAK BLVD., SUITE 1580, HOUSTON TX 77056
Charles W. Kropp officer: Chief Financial Officer C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Jeffrey Emery officer: President - Global Fire Safety C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Iversen Bernt G Ii director CHAMPION AEROSPACE INC, 1230 OLD NORRIS ROAD, LIBERTY SC 29657
Kevin M Stein director TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Windacre Partnership Llc 10 percent owner 2200 POST OAK BOULEVARD, SUITE 1580, HOUSTON TX 77056
Snehal Amin 10 percent owner 2200 POST OAK BLVD., SUITE 1580, HOU TX 77056
Sean P Hennessy director C/O THE SHERWIN WILLIAMS CO, 101 PROSPECT AVE NW, CLEVELAND OH 44115
Kremling Ernest C. Ii officer: Chief Operating Officer 9555 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 600, HOUSTON TX 77099
Noriko Yokozuka officer: General Counsel C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Stephen Cornwall officer: Chief Commercial Officer C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Shannon Horn officer: Business Director C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000