GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » High Arctic Energy Services Inc (TSX:HWO) » Definitions » Degree of Operating Leverage

High Arctic Energy Services (TSX:HWO) Degree of Operating Leverage : 0.90 (As of Mar. 2025)


View and export this data going back to 2005. Start your Free Trial

What is High Arctic Energy Services Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. High Arctic Energy Services's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.90. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for High Arctic Energy Services's Degree of Operating Leverage or its related term are showing as below:

TSX:HWO's Degree of Operating Leverage is ranked better than
50.99% of 906 companies
in the Oil & Gas industry
Industry Median: 0.99 vs TSX:HWO: 0.90

High Arctic Energy Services Degree of Operating Leverage Historical Data

The historical data trend for High Arctic Energy Services'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.

High Arctic Energy Services Degree of Operating Leverage Chart

High Arctic Energy Services 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 -6.84 1.48 21.10 1.06 3.15

High Arctic Energy Services 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 1.05 1.16 1.38 3.15 0.90

Competitive Comparison of High Arctic Energy Services's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, High Arctic Energy Services'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.


High Arctic Energy Services's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, High Arctic Energy Services's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where High Arctic Energy Services's Degree of Operating Leverage falls into.


;
;

High Arctic Energy Services Degree of Operating Leverage Calculation

High Arctic Energy Services'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
=( -2.181 (Mar. 2025) / -1.322 (Mar. 2024) - 1 )/( 9.817 (Mar. 2025) / 5.704 (Mar. 2024) - 1 )
=0.6498/0.7211
=0.90***

* 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.


High Arctic Energy Services  (TSX:HWO) 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.


High Arctic Energy Services Degree of Operating Leverage Related Terms

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


High Arctic Energy Services Business Description

Traded in Other Exchanges
Address
330 - 5th Avenue SW, Suite 2350, Calgary, AB, CAN, T2P 0L4
High Arctic Energy Services Inc is engaged in providing contract drilling, well servicing, completion services, equipment rentals, and other oilfield services to the oil and natural gas industry in Papua New Guinea and Canada. The operating segments of the company are the Drilling Services segment, which consists of drilling services; the Production Services segment, which consists of well servicing and snubbing services; the Rental Services segment consists of High Arctic's oilfield rental equipment of pressure control and other oilfield equipment to exploration and production companies in Canada; and the Corporate segment provides management and administrative services to all the corporation's operations. The Rental Services segment generates the majority company's revenue.
Executives
Lonn Bate Senior Officer
Michael Joseph Maguire Senior Officer
Simon Batcup Director
Lance Mierendorf Senior Officer
Douglas John Strong Director
Stephen Peter Lambert Senior Officer
Joseph Oliver Director
Michael Rupert Binnion Director

High Arctic Energy Services Headlines

No Headlines