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SQM (Sociedad Quimica Y Minera De Chile) Degree of Operating Leverage : 1.74 (As of Dec. 2024)


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What is Sociedad Quimica Y Minera De Chile Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sociedad Quimica Y Minera De Chile's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.74. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Sociedad Quimica Y Minera De Chile's Degree of Operating Leverage or its related term are showing as below:

SQM's Degree of Operating Leverage is ranked worse than
58.42% of 1520 companies
in the Chemicals industry
Industry Median: 1.05 vs SQM: 1.74

Sociedad Quimica Y Minera De Chile Degree of Operating Leverage Historical Data

The historical data trend for Sociedad Quimica Y Minera De Chile'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.

Sociedad Quimica Y Minera De Chile Degree of Operating Leverage Chart

Sociedad Quimica Y Minera De Chile 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 3.08 2.78 1.83 1.57 1.74

Sociedad Quimica Y Minera De Chile 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 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 1.57 1.37 1.43 1.49 1.74

Competitive Comparison of Sociedad Quimica Y Minera De Chile's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Sociedad Quimica Y Minera De Chile'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.


Sociedad Quimica Y Minera De Chile's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sociedad Quimica Y Minera De Chile's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Sociedad Quimica Y Minera De Chile's Degree of Operating Leverage falls into.


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Sociedad Quimica Y Minera De Chile Degree of Operating Leverage Calculation

Sociedad Quimica Y Minera De Chile'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
=( 1162.672 (Dec. 2024) / 2932.412 (Dec. 2023) - 1 )/( 4528.761 (Dec. 2024) / 7467.49 (Dec. 2023) - 1 )
=-0.6035/-0.3935
=1.53***

* 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.


Sociedad Quimica Y Minera De Chile  (NYSE:SQM) 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.


Sociedad Quimica Y Minera De Chile Degree of Operating Leverage Related Terms

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Sociedad Quimica Y Minera De Chile Business Description

Address
El Trovador 4285, 6th Floor, Las Condes, Santiago, CHL
Sociedad Quimica y Minera de Chile is a Chilean commodities producer with significant operations in lithium (primarily used in batteries for electric vehicles and energy storage systems), specialty and standard potassium fertilizers, iodine (primarily used in X-ray contrast media), and solar salts. The company extracts these materials through its high-quality salt brine deposits and caliche ore. SQM is developing a hard rock lithium project in Australia and expanding its lithium refining assets in China.
Executives
Sailingstone Capital Partners Llc 10 percent owner 100 WAUGH DRIVE, SUITE 600, HOUSTON TX 77007
Sailingstone Holdings Llc 10 percent owner 1 CALIFORNIA STREET, SUITE 3050, SAN FRANCISCO CA 94111
Mackenzie B Davis 10 percent owner 1 CALIFORNIA STREET, SUITE 3050, SAN FRANCISCO CA 941111
Settles Kenneth L Jr 10 percent owner 1 CALIFORNIA STREET, SUITE 3050, SAN FRANCISCO CA 94111