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Ivanhoe Electric (TSX:IE) Degree of Operating Leverage : 6.39 (As of Mar. 2025)


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What is Ivanhoe Electric Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ivanhoe Electric's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSX:IE's Degree of Operating Leverage is ranked worse than
84.15% of 732 companies
in the Metals & Mining industry
Industry Median: 0.955 vs TSX:IE: 6.39

Ivanhoe Electric Degree of Operating Leverage Historical Data

The historical data trend for Ivanhoe Electric'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.

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Ivanhoe Electric Degree of Operating Leverage Chart

Ivanhoe Electric Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.01 309.61 1.70 -0.65 1.44

Ivanhoe Electric Quarterly Data
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 0.54 -2.17 -0.08 1.44 6.39

Competitive Comparison of Ivanhoe Electric's Degree of Operating Leverage

For the Copper subindustry, Ivanhoe Electric'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.


Ivanhoe Electric's Degree of Operating Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Ivanhoe Electric's Degree of Operating Leverage distribution charts can be found below:

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


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Ivanhoe Electric Degree of Operating Leverage Calculation

Ivanhoe Electric'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
=( -143.17 (Mar. 2025) / -312.156 (Mar. 2024) - 1 )/( 4.599 (Mar. 2025) / 4.798 (Mar. 2024) - 1 )
=-0.5414/-0.0415
=13.05***

* 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.


Ivanhoe Electric  (TSX:IE) 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.


Ivanhoe Electric Degree of Operating Leverage Related Terms

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Ivanhoe Electric Business Description

Traded in Other Exchanges
Address
450 E Rio Salado Parkway, Suite 130, Tempe, AZ, USA, 85281
Ivanhoe Electric Inc is a United States-based d minerals exploration company with a focus on developing mines from mineral deposits principally located in the United States. The company has four business segments; Santa Cruz Project; critical metals; data processing services; and energy storage. It derives a majority of its revenue from Canada. The Santa Cruz Project and critical metals segments are focused on mineral project exploration and development. The data processing segment provides data analytics, geophysical modeling, and artificial intelligence services for the mineral, oil & gas, and water exploration industries. The energy storage segment develops, manufactures, and installs vanadium flow batteries for grid-scale energy storage.