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RXNPA.PFD (Zurn Elkay Water Solutions) Degree of Operating Leverage : 8.87 (As of Mar. 2025)


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What is Zurn Elkay Water Solutions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Zurn Elkay Water Solutions's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 8.87. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RXNpA.PFD's Degree of Operating Leverage is ranked worse than
86.63% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs RXNpA.PFD: 8.87

Zurn Elkay Water Solutions Degree of Operating Leverage Historical Data

The historical data trend for Zurn Elkay Water 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.

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Zurn Elkay Water Solutions Degree of Operating Leverage Chart

Zurn Elkay Water Solutions Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.13 0.43 0.67 3.47 12.57

Zurn Elkay Water Solutions 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 9.79 176.05 9.32 12.57 8.87

Competitive Comparison of Zurn Elkay Water Solutions's Degree of Operating Leverage

For the Pollution & Treatment Controls subindustry, Zurn Elkay Water 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.


Zurn Elkay Water Solutions's Degree of Operating Leverage Distribution in the Industrial Products Industry

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

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


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Zurn Elkay Water Solutions Degree of Operating Leverage Calculation

Zurn Elkay Water 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
=( 251.7 (Mar. 2025) / 195.8 (Mar. 2024) - 1 )/( 1581.5 (Mar. 2025) / 1532.2 (Mar. 2024) - 1 )
=0.2855/0.0322
=8.87***

* 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.


Zurn Elkay Water Solutions  (NYSE:RXNpA.PFD) 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.


Zurn Elkay Water Solutions Degree of Operating Leverage Related Terms

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


Zurn Elkay Water Solutions Business Description

Traded in Other Exchanges
Address
511 West Freshwater Way, Milwaukee, WI, USA, 53204
Zurn Elkay Water Solutions Corp designs procures, manufactures, and markets a range of clean water solutions for drinking water, hygiene, and sustainable water management. The company's product portfolio includes professional-grade water control and safety, water distribution and drainage, drinking water, finish plumbing, hygienic, environmental and site works products for public and private spaces.
Executives
Emma M Mctague director 1917 FOUR WHEEL DRIVE, OSHKOSH WI 54902
Jeffrey A Schoon officer: Executive Vice President 511 W. FRESHWATER WAY, MILWAUKEE WI 53204
Kate Silha officer: Chief Human Resources Officer 511 W. FRESHWATER WAY, MILWAUKEE WI 53204
Ice Mountain Llc 10 percent owner C/O THE NORTHERN TRUST COMPANY, 50 S. LASALLE ST., B-3, CHICAGO IL 60603
Ronald C. Katz 10 percent owner 827 S. GARFIELD STREET, HINSDALE IL 60521
Katz 2004 Dyn Trust 10 percent owner C/O ERROL R. HALPERIN, 444 W. LAKE STREET, SUITE 900, CHICAGO IL 60606
Cascade Bay Llc 10 percent owner C/O THE NORTHERN TRUST COMPANY, 50 S. LASALLE ST., B-3, CHICAGO IL 60603
Hamilton William Edward Iv officer: Pres. Elkay Mfg. Company 511 W. FRESHWATER WAY, MILWAUKEE WI 53204
Errol R. Halperin director C/O VITAL THERAPIES, INC., 15010 AVENUE OF SCIENCE, SUITE 200, SAN DIEGO CA 92128
Timothy J Jahnke director 115 ANSLEY WAY, ROSWELL GA 30075
Jeffrey J. Lavalle officer: VP, General Counsel & Sec'y 511 W. FRESHWATER WAY, MILWAUKEE WI 53204
Todd A. Adams director, officer: Chairman, President & CEO 4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214
George C Moore director C/O REXNORD CORPORATION, 4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214
Mark W Peterson officer: SVP & Chief Financial Officer 4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214
Craig Wehr officer: Group Ex., President-Zurn C/O REXNORD CORPORATION, P.O. BOX 2022, MILWAUKEE WI 53201