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ROCK (Gibraltar Industries) Degree of Operating Leverage : 1.09 (As of Mar. 2025)


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What is Gibraltar Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Gibraltar Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.09. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ROCK's Degree of Operating Leverage is ranked worse than
51.65% of 1669 companies
in the Construction industry
Industry Median: 0.99 vs ROCK: 1.09

Gibraltar Industries Degree of Operating Leverage Historical Data

The historical data trend for Gibraltar Industries'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.

Gibraltar Industries Degree of Operating Leverage Chart

Gibraltar Industries 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 2.27 -0.23 7.62 -21.68 0.08

Gibraltar Industries 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 15.31 78.85 0.37 0.08 1.09

Competitive Comparison of Gibraltar Industries's Degree of Operating Leverage

For the Building Products & Equipment subindustry, Gibraltar Industries'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.


Gibraltar Industries's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Gibraltar Industries's Degree of Operating Leverage distribution charts can be found below:

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


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Gibraltar Industries Degree of Operating Leverage Calculation

Gibraltar Industries'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
=( 148.097 (Mar. 2025) / 156.892 (Mar. 2024) - 1 )/( 1306.273 (Mar. 2025) / 1376.975 (Mar. 2024) - 1 )
=-0.0561/-0.0513
=1.09***

* 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.


Gibraltar Industries  (NAS:ROCK) 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.


Gibraltar Industries Degree of Operating Leverage Related Terms

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


Gibraltar Industries Business Description

Traded in Other Exchanges
N/A
Address
3556 Lake Shore Road, P.O. Box 2028, Buffalo, NY, USA, 14219-0228
Gibraltar Industries Inc manufactures and provides products and services for the Renewable energy, Residential, Agtech, and Infrastructure markets. The Renewables Segment is engaged in designing, engineering, manufacturing, and installing solar racking and electrical balance systems. Agtech Segment provides growing and processing solutions including the designing, engineering, manufacturing, full-scope construction, maintenance, and support of greenhouses and indoor growing operations, and botanical extraction systems. It derives key revenue from the Residential segment which offers roof and foundation ventilation products, single point and centralized mail systems electronic package solutions, and Retractable awnings and gutter guards, among other products.
Executives
James B Nish director 3556 LAKESHORE RD., BLASDELL NY 14219
Janet Anne Catlett officer: VP, CHRO 22 WEST FRONTAGE ROAD, NORTHFIELD IL 60093
Linda Kristine Myers director 3556 LAKE SHORE ROAD, P.O. BOX 2028, BUFFALO NY 14219
Katherine Bolanowski officer: General Counsel, VP, Secretary 3556 LAKE SHORE ROAD, BUFFALO NY 14219
Patrick Burns officer: Chief Operating Officer 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515
Jeffrey J. Watorek officer: VP, Treasurer, Secretary 3556 LAKESHORE ROAD, BLASDELL NY 14219
Elizabeth Jensen officer: Chief Human Resources Officer 5928 HIGHLAND HILLS CIRCLE, FORT COLLINS CO 80528
Gwendolyn G Mizell director 800 S HANLEY SUITE 8D, CLAYTON MO 63105
Manish H Shah director 9618 BOUCHAINE PASS, BRENTWOOD TN 37027
Mark G Barberio director 19 WIK STREET, WILLIAMSVILLE NY 14221
Vinod M Khilnani director 905 WEST BLVD NORTH, ELKHART IN 46514
Sharon M Brady director 3600 W. LAKE AVENUE, GLENVIEW IL 60026
William P Montague director
Atlee Valentine Pope director 3556 LAKE SHORE ROAD, P.O. BOX 2028, BUFFALO NY 14219
Craig A Hindman director ILLINOIS TOOL WORKS INC., 3600 WEST LAKE AVENUE, GLENVIEW IL 60026