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USAC (USA Compression Partners LP) Degree of Operating Leverage : 1.34 (As of Mar. 2025)


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What is USA Compression Partners LP Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. USA Compression Partners LP's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.34. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for USA Compression Partners LP's Degree of Operating Leverage or its related term are showing as below:

USAC's Degree of Operating Leverage is ranked worse than
55.97% of 904 companies
in the Oil & Gas industry
Industry Median: 0.99 vs USAC: 1.34

USA Compression Partners LP Degree of Operating Leverage Historical Data

The historical data trend for USA Compression Partners LP'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.

USA Compression Partners LP Degree of Operating Leverage Chart

USA Compression Partners LP 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 85.56 24.84 1.77 2.06 1.89

USA Compression Partners LP 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 2.10 1.80 1.52 1.89 1.34

Competitive Comparison of USA Compression Partners LP's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, USA Compression Partners LP'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.


USA Compression Partners LP's Degree of Operating Leverage Distribution in the Oil & Gas Industry

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

* The bar in red indicates where USA Compression Partners LP's Degree of Operating Leverage falls into.


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USA Compression Partners LP Degree of Operating Leverage Calculation

USA Compression Partners LP'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
=( 293.982 (Mar. 2025) / 259.187 (Mar. 2024) - 1 )/( 966.407 (Mar. 2025) / 878.33 (Mar. 2024) - 1 )
=0.1342/0.1003
=1.34***

* 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.


USA Compression Partners LP  (NYSE:USAC) 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.


USA Compression Partners LP Degree of Operating Leverage Related Terms

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


USA Compression Partners LP Business Description

Traded in Other Exchanges
N/A
Address
8117 Preston Road, Suite 510A, Austin, TX, USA, 75225
USA Compression Partners LP provides compression services in the United States in terms of total compression fleet horsepower to customers relating to infrastructure applications, including both allowing for the processing and transportation of natural gas through the domestic pipeline system and enhancing crude oil production through artificial lift processes. It engineers, designs, operates, services, and repairs its compression units and maintains related support inventory and equipment. The company provides compression services in several shale plays throughout the U.S., including the Utica, Marcellus, Permian, Denver-Julesburg, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, and Haynesville.
Executives
Bradford D. Whitehurst director, See Remarks 100 CONGRESS AVENUE, SUITE 450, AUSTIN TX 78701
Eric D Long director, officer: See Remarks 111 CONGRESS AVE., SUITE 2400, AUSTIN TX 78701
Eig Veteran Equity Aggregator, L.p. director 1700 PENNSYLVANIA AVENUE, NW, SUITE 800, WASHINGTON DC 20006
Sean T Kimble officer: SEE REMARKS 111 CONGRESS AVE., SUITE 2400, AUSTIN TX 78701
Christopher W Porter officer: SEE REMARKS 111 CONGRESS AVE., SUITE 2400, AUSTIN TX 78701
Michael C Pearl officer: See Remarks 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380-7046
W Brett Smith director 508 W WALL AVE., SUITE 500, MIDLAND TX 79701
Eric A Scheller officer: See Remarks 111 CONGRESS AVE, SUITE 2400, AUSTIN TX 78701
Energy Transfer Partners Gp, L.p. 10 percent owner 3738 OAK LAWN AVE., DALLAS TX 75219
Kelcy L Warren 10 percent owner
Energy Transfer Operating, L.p. 10 percent owner 8111 WESTCHESTER DRIVE, SUITE 600, DALLAS TX 75225
Energy Transfer Partners, L.l.c. 10 percent owner 3738 OAK LAWN AVE., DALLAS TX 75219
Energy Transfer Lp 10 percent owner 8111 WESTCHESTER DRIVE, SUITE 600, DALLAS TX 75225
Le Gp Llc 10 percent owner
William G Manias director GULFTERRA ENERGY PARTNERS, 4 GREENWAY PLAZA, HOUSTON TX 77046