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InPlay Oil (TSX:IPO) Degree of Operating Leverage : 5.89 (As of Mar. 2025)


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What is InPlay Oil Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. InPlay Oil's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.89. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSX:IPO's Degree of Operating Leverage is ranked worse than
79.43% of 909 companies
in the Oil & Gas industry
Industry Median: 0.97 vs TSX:IPO: 5.89

InPlay Oil Degree of Operating Leverage Historical Data

The historical data trend for InPlay Oil'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.

InPlay Oil Degree of Operating Leverage Chart

InPlay Oil 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 71.78 -1.30 -0.06 2.28 3.57

InPlay Oil 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 2.44 3.54 3.45 3.57 5.89

Competitive Comparison of InPlay Oil's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, InPlay Oil'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.


InPlay Oil's Degree of Operating Leverage Distribution in the Oil & Gas Industry

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

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


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InPlay Oil Degree of Operating Leverage Calculation

InPlay Oil'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
=( 13.129 (Mar. 2025) / 32.498 (Mar. 2024) - 1 )/( 154.652 (Mar. 2025) / 172.062 (Mar. 2024) - 1 )
=-0.596/-0.1012
=5.89***

* 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.


InPlay Oil  (TSX:IPO) 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.


InPlay Oil Degree of Operating Leverage Related Terms

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


InPlay Oil Business Description

Industry
Traded in Other Exchanges
Address
2000, 350 - 7th Avenue S.W, Calgary, AB, CAN, T2P 3N9
InPlay Oil Corp is an oil development and production company based in Calgary, Alberta. It is engaged in the acquisition, exploration, and development of petroleum and natural gas properties, and the production and sale of crude oil, natural gas, and natural gas liquids. Its petroleum and natural gas operations are located in the Province of Alberta. The company's operations are focused on a concentrated light oil asset base located in West Central Alberta. It derives revenue from selling its production of crude oil, natural gas and NGLs under variable price contracts.
Executives
Kevin Yakiwchuk Senior Officer
Douglas Bartole Director, Senior Officer
Darren W. Dittmer Senior Officer
Brent Michael Howard Senior Officer
Kevin Leonard Senior Officer
Regan Todd Davis Director
Thane Jensen Senior Officer
Stephen Curtis Nikiforuk Director
Sprott Resource Holdings Inc. 10% Security Holder