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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Steel Partners Holdings LP's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 3.63. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Steel Partners Holdings LP's Degree of Operating Leverage or its related term are showing as below:
The historical data trend for Steel Partners Holdings LP'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.
Steel Partners Holdings LP Annual Data | |||||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | Dec24 | |||||||||||
Degree of Operating Leverage | Get a 7-Day Free Trial |
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-0.61 | 2.36 | 3.19 | -1.37 | 3.63 |
Steel Partners Holdings LP Quarterly Data | ||||||||||||||||||||
Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | Dec24 | |
Degree of Operating Leverage | Get a 7-Day Free Trial |
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-1.37 | -2.09 | -0.14 | 0.74 | 3.63 |
For the Conglomerates subindustry, Steel Partners Holdings LP'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.
For the Conglomerates industry and Industrials sector, Steel Partners Holdings LP's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Steel Partners Holdings LP's Degree of Operating Leverage falls into.
Steel Partners Holdings LP's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:
Degree of Operating Leverage | = | % Change in EBIT** | / | % Change in Revenue |
= | ( 320.597 (Dec. 2024) / 260.038 (Dec. 2023) - 1 ) | / | ( 2027.848 (Dec. 2024) / 1905.457 (Dec. 2023) - 1 ) | |
= | 0.2329 | / | 0.0642 | |
= | 3.63*** |
* 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.
Steel Partners Holdings LP (NYSE:SPLPpA.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.
Thank you for viewing the detailed overview of Steel Partners Holdings LP's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Ryan O'herrin | officer: Chief Financial Officer | 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022-8547 |
Joseph Richards Martin | officer: See Remarks | C/O LOUISIANA-PACIFIC CORPORATION, 414 UNION STREET, SUITE 2000, NASHVILLE TN 37219 |
Gary Tankard | officer: Chief Accounting Officer | C/O STEEL PARTNERS HOLDINGS LP, 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
Jason Wong | officer: Chief Financial Officer | 590 MADISON AVENUE, FLOOR 32, C/O STEEL PARTNERS HOLDINGS LP, NEW YORK NY 10022 |
Gordon A. Walker | officer: Senior Vice President | KNOWLES CORPORATION, 1151 MAPLEWOOD DRIVE, ITASCA IL 60143 |
Lon Rosen | director | 120 S. CARMELINA AVE., LOS ANGELES CA 90049 |
Rory H. Tahari | director | 510 FIFTH AVENUE, NEW YORK NY 10036 |
James Iii Benenson | director | C/O STEEL PARTNERS HOLDINGS L.P., 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
Eric P. Karros | director | C/O STEEL PARTNERS HOLDINGS L.P., 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
Emh Howard Llc | other: See Footnote 1 | 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
Fejes William Theodore Jr | officer: President, Steel Services, Ltd | 440 NORTH FIFTH AVENUE, CHAMBERSBURG PA 17201 |
Douglas Woodworth | officer: Chief Financial Officer | STEEL PARTNERS HOLDINGS L.P., 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
Sph Spv-i Llc | other: See Explanation of Responses | 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
Steel Partners, Ltd. | 10 percent owner | 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
Wgl Capital Corp. | 10 percent owner | 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022 |
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