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RNGR (Ranger Energy Services) Degree of Operating Leverage : -2.83 (As of Mar. 2025)


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What is Ranger Energy Services Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ranger Energy Services's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RNGR's Degree of Operating Leverage is ranked better than
79.98% of 909 companies
in the Oil & Gas industry
Industry Median: 0.97 vs RNGR: -2.83

Ranger Energy Services Degree of Operating Leverage Historical Data

The historical data trend for Ranger Energy Services'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.

Ranger Energy Services Degree of Operating Leverage Chart

Ranger Energy Services 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 5.01 -1.39 -7.49 10.41 1.66

Ranger Energy Services 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 8.33 5.32 4.02 1.66 -2.83

Competitive Comparison of Ranger Energy Services's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, Ranger Energy Services'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.


Ranger Energy Services's Degree of Operating Leverage Distribution in the Oil & Gas Industry

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

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


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Ranger Energy Services Degree of Operating Leverage Calculation

Ranger Energy Services'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
=( 30.1 (Mar. 2025) / 24.8 (Mar. 2024) - 1 )/( 569.4 (Mar. 2025) / 616 (Mar. 2024) - 1 )
=0.2137/-0.0756
=-2.83***

* 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.


Ranger Energy Services  (NYSE:RNGR) 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.


Ranger Energy Services Degree of Operating Leverage Related Terms

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


Ranger Energy Services Business Description

Traded in Other Exchanges
Address
10350 Richmond, Suite 550, Houston, TX, USA, 77042
Ranger Energy Services Inc is a provider of onshore high-specification (high-spec) well service rigs, wireline services, and additional processing solutions and ancillary services in the United States. It offers a range of well-site services to U.S. exploration and production (E&P) companies that are fundamental to establishing and enhancing the flow of oil and natural gas throughout the productive life of a well. The segments of the group are High Specification Rigs, Wireline Services and Processing Solutions, and Ancillary Services, of which key revenue is derived from the High Specification Rigs segment.
Executives
Brett T. Agee director 10350 RICHMOND AVENUE, SUITE 550, HOUSTON TX 77042
Michael C Kearney director 3300 NORTH SAM HOUSTON PKWY EAST, HOUSTON TX 77032-3411
Krishna Shivram director C/O WEATHERFORD INTERNATIONAL PLC, 2000 ST JAMES PLACE, HOUSTON TX 77056
J. Matt Hooker officer: Chief Operating Officer 800 GESSNER STREET, SUITE 1000, HOUSTON TX 77024
Melissa Cougle officer: Chief Financial Officer 777 POST OAK BLVD., 7TH FLOOR, HOUSTON TX 77056
Stuart Bodden director, officer: Chief Executive Officer 10350 RICHMOND AVENUE, SUITE 550, HOUSTON TX 77042
Charles S. Leykum director, 10 percent owner 1000 LOUISIANA STREET, SUITE 3850, HOUSTON TX 77002
Byron A Dunn director C/O HARVEST NATURAL RESOURCES, INC., 1177 ENCLAVE PARKWAY, SUITE 300, HOUSTON TX 77077
William M Austin director C/O KEY ENERGY SERVICES, INC., 1301 MCKINNEY STREET, SUITE 1800, HOUSTON TX 77010
John Fichthorn 10 percent owner C/O DIALECTIC CAPITAL MANAGEMENT, LLC, 17 STATE STREET, SUITE 3930, NEW YORK NY 10004
Dialectic Geronimo Manager Llc 10 percent owner 119 ROWAYTON AVENUE, NORWALK CT 06853
Dialectic Partners, Llc 10 percent owner 2ND FLOOR 119 ROWAYTON AVE, NORWALK CT 06853
Dialectic Geronimo Spv Llc 10 percent owner 119 ROWAYTON AVENUE, 2ND FLOOR, NORWALK CT 06853
Dialectic Capital Management, Lp 10 percent owner 119 ROWAYTON AVENUE, 2ND FLOOR, NORWALK CT 06853
Ben A Guill 10 percent owner 600 TRAVIS, SUITE 6000, HOUSTON TX 77002