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TSE (Trinseo) Degree of Operating Leverage : 16.75 (As of Mar. 2025)


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What is Trinseo Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Trinseo's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 16.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSE's Degree of Operating Leverage is ranked worse than
88.69% of 1521 companies
in the Chemicals industry
Industry Median: 1.01 vs TSE: 16.75

Trinseo Degree of Operating Leverage Historical Data

The historical data trend for Trinseo'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.

Trinseo Degree of Operating Leverage Chart

Trinseo 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 0.50 3.36 -64.02 -0.95 20.09

Trinseo 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 0.22 6.59 12.14 20.09 16.75

Competitive Comparison of Trinseo's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Trinseo'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.


Trinseo's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Trinseo's Degree of Operating Leverage distribution charts can be found below:

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


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Trinseo Degree of Operating Leverage Calculation

Trinseo'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
=( -49.2 (Mar. 2025) / -424.3 (Mar. 2024) - 1 )/( 3394 (Mar. 2025) / 3583.1 (Mar. 2024) - 1 )
=-0.884/-0.0528
=16.75***

* 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.


Trinseo  (NYSE:TSE) 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.


Trinseo Degree of Operating Leverage Related Terms

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


Trinseo Business Description

Industry
Traded in Other Exchanges
Address
440 East Swedesford Road, Suite 301, Wayne, PA, USA, 19087
Trinseo PLC is a materials company and manufacturer of latex and plastics products. The company's operating segments include Latex Binders, Americas Styrenics, Engineered Materials, and Polymer Solutions. Maximum revenue is generated from its Polymer Solutions segment, which consists of various polymers, the majority of which are for automotive, building, and construction applications. The product offerings of this segment include ABS, styrene-acrylonitrile, polystyrene, and polycarbonate products, which are marketed through brands like Magnum and Styron. Geographically, the company generates maximum revenue from Europe, followed by the United States, Asia-Pacific, and the Rest of the world.
Executives
Johanna Frisch officer: Treasurer C/O TRINSEO PLC, 1000 CHESTERBROOK BLVD., SUITE 300, BERWYN PA 19312
Jeffrey J Cote director C/O SENSATA TECHNOLOGIES, INC., 529 PLEASANT STREET, ATTLEBORO MA 02703
Mark E Tomkins director VULCAN MATERIALS CO, 1200 URBAN CENTER DR, BIRMINGHAM AL 35242
Angelo N. Chaclas officer: See Remarks C/O TRINSEO S.A., 1000 CHESTERBROOK BOULEVARD, SUITE 300, BERWYN PA 19312
Frank A Bozich officer: President and CEO PO BOX 1046, SCHENECTADY NY 12301
Matthew Farrell director
Roger Greene officer: VP, GLOBAL CONTROLLER & PAO C/O TRINSEO PLC, 440 EAST SWEDESFORD ROAD, SUITE 301, WAYNE PA 19087
David Phillip Stasse officer: See Remarks C/O FREESCALE SEMICONDUCTOR, INC., 6501 WILLIAM CANNON DRIVE WEST, AUSTIN TX 78735
Jeanmarie F. Desmond director C/O E.I. DU PONT DE NEMOURS AND COMPANY, 974 CENTRE ROAD, BLDG. 730, WILMINGTON DE 19805
Timothy J Thomas officer: Vice President C/O TRINSEO S.A., 1000 CHESTERBROOK BLVD., SUITE 300, BERWYN PA 19312
Philip R Martens director PLEXUS CORP., ONE PLEXUS WAY, NEENAH WI 54956
Kessel Bregje Van officer: SVP, Base Plastics 440 EAST SWEDESFORD ROAD, SUITE 301, WAYNE PA 19087
Han Hendriks officer: Chief Technology Officer C/O TRINSEO PLC, 440 EAST SWEDESFORD ROAD, SUITE 301, WAYNE PA 19087
M&g Investment Management Ltd 10 percent owner 10 FENCHURCH AVENUE, LONDON X0 EC3M 5AG
Bernard M Skeete officer: VP, CAO and Global Controller C/O TRINSEO S.A., 1000 CHESTERBROOK BLVD., SUITE 300, BERWYN PA 19312