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Unit (UNTC) Degree of Operating Leverage : 2.78 (As of Mar. 2025)


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What is Unit Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Unit's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.78. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

UNTC's Degree of Operating Leverage is ranked worse than
68.32% of 909 companies
in the Oil & Gas industry
Industry Median: 0.97 vs UNTC: 2.78

Unit Degree of Operating Leverage Historical Data

The historical data trend for Unit'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.

Unit Degree of Operating Leverage Chart

Unit 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 -6.00 -0.99 -1.13 -1.05 2.54

Unit 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 1.07 1.57 1.66 2.54 2.78

Competitive Comparison of Unit's Degree of Operating Leverage

For the Oil & Gas Integrated subindustry, Unit'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.


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

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

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


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Unit Degree of Operating Leverage Calculation

Unit'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
=( 63.037 (Mar. 2025) / 164.661 (Mar. 2024) - 1 )/( 233.88 (Mar. 2025) / 300.568 (Mar. 2024) - 1 )
=-0.6172/-0.2219
=2.78***

* 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.


Unit  (OTCPK:UNTC) 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.


Unit Degree of Operating Leverage Related Terms

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


Unit Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Unit Corp (OTCPK:UNTC) » Definitions » Degree of Operating Leverage
Traded in Other Exchanges
N/A
Address
8200 South Unit Drive, Tulsa, OK, USA, 74132
Unit Corp is an oil and natural gas contract drilling company. The company is also in exploration and production and mid-stream areas. There are two segments which include Oil and Natural gas and Contract Drilling. The oil and natural gas segment is engaged in the development, acquisition, and production of oil, NGLs, and natural gas properties. The contract drilling segment contracts to drill onshore oil and natural gas wells for a wide range of other oil and natural gas companies. Majority of the revenue is generated from the Contract Drilling segment.
Executives
Micheal L Hicks officer: President, Superior Pipeline 8200 S. UNIT DRIVE, TULSA OK 74132
Peyton G Bailey Iv director 8200 S. UNIT DRIVE, TULSA OK 74132
George L Austin officer: Sr. VP and CFO C/O CYPRESS ENERGY PARTNERS, L.P., 5727 S LEWIS AVENUE, SUITE 500, TULSA OK 74105
David P Dunham officer: Sr VP Business Development 8200 S. UNIT DRIVE, TULSA OK 74132
Frank Q Young officer: Executive Vice President, UPC 8200 S. UNIT DRIVE, TULSA OK 74132
Carla S Mashinski director 8200 S. UNIT DRIVE, TULSA OK 74132
Larry C Payne director 8200 S. UNIT DRIVE, TULSA OK 74132
Don A Hayes officer: Controller 8200 S. UNIT DRIVE, TULSA OK 74132
Steven B Hildebrand director 8200 S. UNIT DRIVE, TULSA OK 74132
Brad Guidry officer: Senior Vice President, UPC 8200 S. UNIT DRIVE, TULSA OK 74132
John Cromling officer: Executive Vice President, UDC 8200 S. UNIT DRIVE, TULSA OK 74132
Robert Parks officer: Manager, Superior Pipeline 8200 S. UNIT DRIVE, TULSA OK 74132
Sullivan Robert J Jr director 8200 S. UNIT DRIVE, TULSA OK 74132
Gary R Christopher director 8200 S. UNIT DRIVE, TULSA OK 74132
George Kaiser Family Foundation 10 percent owner 7030 SOUTH YALE AVENUE, SUITE 600, TULSA OK 74136

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