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TerraVest Industries (TSX:TVK) Degree of Operating Leverage : 0.78 (As of Mar. 2025)


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What is TerraVest Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. TerraVest Industries's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.78. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSX:TVK's Degree of Operating Leverage is ranked better than
52.43% of 906 companies
in the Oil & Gas industry
Industry Median: 0.945 vs TSX:TVK: 0.78

TerraVest Industries Degree of Operating Leverage Historical Data

The historical data trend for TerraVest Industries'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.

TerraVest Industries Degree of Operating Leverage Chart

TerraVest Industries Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -17.44 22.95 0.40 1.28 1.34

TerraVest Industries 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 2.77 2.01 1.34 1.41 0.78

Competitive Comparison of TerraVest Industries's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, TerraVest Industries'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.


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

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

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


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TerraVest Industries Degree of Operating Leverage Calculation

TerraVest Industries'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
=( 142.947 (Mar. 2025) / 114.203 (Mar. 2024) - 1 )/( 1014.818 (Mar. 2025) / 767.327 (Mar. 2024) - 1 )
=0.2517/0.3225
=0.78***

* 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.


TerraVest Industries  (TSX:TVK) 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.


TerraVest Industries Degree of Operating Leverage Related Terms

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


TerraVest Industries Business Description

Industry
Traded in Other Exchanges
Address
60th Street, Suite 6205, Vegreville, AB, CAN, T9C 1S3
TerraVest Industries Inc manufactures home heating products, propane, anhydrous ammonia, natural gas liquids transport vehicles, storage vessels, energy processing equipment, and fiberglass storage tanks. The company's operating segments include Home Heating and Cooling Products and Containment Equipment (HVAC Equipment), Compressed Gas Storage and Distribution Equipment (Compressed Gas Equipment), Energy Processing Equipment (Processing Equipment), and Service. The majority of its revenue is generated from its HVAC and Cooling Products and Containment Equipment segment which manufactures and distributes products including commercial and residential refined fuel tanks, wastewater treatment systems, grease removal systems, and other custom-built steel storage products.
Executives
Mitchell Jordan Gilbert Senior Officer

TerraVest Industries Headlines

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