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TXHE (Texhoma Energy) Degree of Operating Leverage : 0.00 (As of Jun. 2008)


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What is Texhoma Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Texhoma Energy's Degree of Operating Leverage for the quarter that ended in Jun. 2008 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TXHE's Degree of Operating Leverage is not ranked *
in the Oil & Gas industry.
Industry Median: 0.95
* Ranked among companies with meaningful Degree of Operating Leverage only.

Texhoma Energy Degree of Operating Leverage Historical Data

The historical data trend for Texhoma Energy'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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Texhoma Energy Degree of Operating Leverage Chart

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Competitive Comparison of Texhoma Energy's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, Texhoma Energy'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.


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

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

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


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Texhoma Energy Degree of Operating Leverage Calculation

Texhoma Energy's Degree of Operating Leverage for the quarter that ended in Jun. 2008 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -1.334 (Jun. 2008) / -4.374 (Jun. 2007) - 1 )/( 1.699 (Jun. 2008) / 2.499 (Jun. 2007) - 1 )
=-0.695/-0.3201
=2.17***

* 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.


Texhoma Energy  (OTCPK:TXHE) 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.


Texhoma Energy Degree of Operating Leverage Related Terms

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Texhoma Energy Business Description

Industry
Traded in Other Exchanges
N/A
Address
24624 I-45 North, Suite 200, Spring, TX, USA, 77386
Texhoma Energy Inc is an oil and gas company. It is primarily engaged in the acquisition, exploration, and development of crude oil and natural gas properties. The company holds interests in approximately five oil wells located on the Shooter 916 lease located in Ochiltree County, Texas. It also holds interests in the Tonto North 390 B No. 3 well located in Scurry County, Texas. The firm has various non-operated working interests in approximately eight wells located in Gregg and Upshur Counties, Texas.

Texhoma Energy Headlines

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