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SPXC (SPX Technologies) Degree of Operating Leverage : 3.72 (As of Mar. 2025)


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What is SPX Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. SPX Technologies's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.72. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SPXC's Degree of Operating Leverage is ranked worse than
75.37% of 1669 companies
in the Construction industry
Industry Median: 0.99 vs SPXC: 3.72

SPX Technologies Degree of Operating Leverage Historical Data

The historical data trend for SPX Technologies'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.

SPX Technologies Degree of Operating Leverage Chart

SPX Technologies 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 0.33 17.22 -2.84 25.36 2.94

SPX Technologies 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 12.97 9.37 6.58 2.94 3.72

Competitive Comparison of SPX Technologies's Degree of Operating Leverage

For the Building Products & Equipment subindustry, SPX Technologies'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.


SPX Technologies's Degree of Operating Leverage Distribution in the Construction Industry

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

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


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SPX Technologies Degree of Operating Leverage Calculation

SPX Technologies'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
=( 310.4 (Mar. 2025) / 221.6 (Mar. 2024) - 1 )/( 2001.3 (Mar. 2025) / 1806.6 (Mar. 2024) - 1 )
=0.4007/0.1078
=3.72***

* 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.


SPX Technologies  (NYSE:SPXC) 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.


SPX Technologies Degree of Operating Leverage Related Terms

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


SPX Technologies Business Description

Traded in Other Exchanges
Address
6325 Ardrey Kell Road, Suite 400, Charlotte, NC, USA, 28277
SPX Technologies Inc supplies engineered heating, ventilation, and air conditioning, or HVAC, products, as well as detection and measurement technologies and power equipment. The company through two reportable segments. The HVAC segment which generates the majority of the revenue for the company, designs, manufactures, installs, and services cooling products, as well as heating and ventilation products. The detection and measurement technologies segment designs, manufactures, and installs underground pipe and cable locators and inspection equipment, bus-fare collection systems, and others. Geographically, the company has its operations in the United States, Canada, China, the United Kingdom, and Others.
Executives
J Randall Data officer: Pres. - S. Africa & Global Op. 13024 BALLANTYNE CORPORATE PLACE, SUITE 700, CHARLOTTE NC 28277
Swann John William Iii officer: Pres., Heating and Location & C/O SPX CORPORATION, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Lowe Eugene Joseph Iii director, officer: President and CEO 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Natausha Heleena White officer: VP and CHRO C/O SPX CORPORATION, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Wayne M. Mclaren officer: Chief Accounting Officer C/O SPX CORPORATION, 6325 ARDREY KELL ROAD, CHARLOTTE NC 28277
John Webster Nurkin officer: VP, Gen. Counsel & Secretary C/O SPX CORPORATION, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Mark A Carano officer: VP, CFO & Treasurer 13024 BALLANTYNE CORPORATE PLACE, #700, CHARLOTTE NC 28277
Sean Mcclenaghan officer: PRESIDENT, GLOBAL COOLING SPX TECHNOLOGIES, INC., 6325 ARDREY KELL ROAD, SUITE 400, CHARLOTTE NC 28277
Michael Andrew Reilly officer: Corp. Controller and CAO 2007 CHANNELSTONE WAY, MATTHEWS NC 28104
James E Harris officer: VP, CFO and Treasurer C/O RXO, INC., 11215 N. COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Ankush Kumar officer: President, SPX Global Cooling C/O SPX CORPORATION, 6325 ARDREY KELL ROAD, CHARLOTTE NC 28277
Brian G. Mason officer: Pres. - SPX Transformer Sol. C/O SPX CORPORATION, 13320-A BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Angel S Willis director C/O SEALED AIR CORPORATION, 2415 CASCADE POINTE BOULEVARD, CHARLOTTE NC 28208
Scott William Sproule officer: VP, CFO and Treasurer C/O SPX CORPORATION, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Meenal Sethna director 8755 WEST HIGGINS ROAD, SUITE 500, CHICAGO IL 60631