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RPC (RES) Degree of Operating Leverage : 5.40 (As of Mar. 2025)


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What is RPC Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. RPC's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RES's Degree of Operating Leverage is ranked worse than
78.26% of 906 companies
in the Oil & Gas industry
Industry Median: 0.99 vs RES: 5.40

RPC Degree of Operating Leverage Historical Data

The historical data trend for RPC'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.

RPC Degree of Operating Leverage Chart

RPC 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 -2.38 17.37 -11.82 4.45

RPC 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 2.91 3.01 3.85 4.45 5.40

Competitive Comparison of RPC's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, RPC'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.


RPC's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, RPC's Degree of Operating Leverage distribution charts can be found below:

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


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RPC Degree of Operating Leverage Calculation

RPC'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
=( 94.111 (Mar. 2025) / 199.392 (Mar. 2024) - 1 )/( 1370.043 (Mar. 2025) / 1518.639 (Mar. 2024) - 1 )
=-0.528/-0.0978
=5.40***

* 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.


RPC  (NYSE:RES) 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.


RPC Degree of Operating Leverage Related Terms

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


RPC Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » RPC Inc (NYSE:RES) » Definitions » Degree of Operating Leverage
Traded in Other Exchanges
Address
2801 BUFORD HIGHWAY NE, Suite 300, Atlanta, GA, USA, 30329
RPC Inc is an oilfield services company. It provides specialized oilfield services and equipment to independent and oil and gas companies engaged in the exploration, production, and development of oil and gas properties throughout the United States. The company's operating segment includes Technical Services and Support Services. It generates maximum revenue from the Technical Services segment. Technical Services segment nclude RPC's oil and gas services that utilize people and equipment to perform value-added completion, production and maintenance services directly to a customer's well. Support Services segment consists of drill pipe and related tools, pipe handling, pipe inspection and storage services, and oilfield training and consulting services.
Executives
Gary W. Rollins Voting Trust U/a Dated September 14, 1994 10 percent owner C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY, NE, ATLANTA GA 30329
Amy Rollins Kreisler director 2801 BUFORD HIGHWAY, NE, SUITE 520, ATLANTA GA 30329
Timothy Curtis Rollins director 2801 BUFORD HIGHWAY, NE, SUITE 520, ATLANTA GA 30329
Pam R Rollins director 2170 PIEDMONT ROAD, ATLANTA GA 30324
Gary W Rollins director, 10 percent owner 2170 PIEDMONT ROAD NE, ATLANTA GA 30324
Lor Inc 10 percent owner C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
Michael Schmit officer: CFO and Corporate Secretary 3055 TORRINGTON DRIVE, BALL GROUND GA 30107
John F Wilson director 2170 PIEDMONT ROAD, NE, ATLANTA GA 30324
Rollins Holding Company, Inc. 10 percent owner C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
Ben M Palmer officer: VP, CFO and Treasurer C/O MARINE PRODUCTS CORP, 2170 PIEDMONT RD, NE, ATLANTA GA 30324
Patrick J. Gunning director 1958 CALDER COURT, DUNWOODY GA 30338
Susan R. Bell director 852 CASTLE FALLS DR., ATLANTA GA 30329
Harry J Cynkus director 2170 PIEDMONT RD, ATLANTA GA 30324
Jerry W Nix director 2999 WILDWOOD PARKWAY, ATLANTA GA 30339
R. Randall Rollins 2012 Trust 10 percent owner C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY, NE, ATLANTA GA 30329