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VTNRQ (Vertex Energy) Degree of Operating Leverage : -59.35 (As of Jun. 2024)


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What is Vertex Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Vertex Energy's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was -59.35. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VTNRQ's Degree of Operating Leverage is not ranked
in the Oil & Gas industry.
Industry Median: 0.97 vs VTNRQ: -59.35

Vertex Energy Degree of Operating Leverage Historical Data

The historical data trend for Vertex 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.

* Premium members only.

Vertex Energy Degree of Operating Leverage Chart

Vertex Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.70 0.28 3.13 -0.22 -9.82

Vertex Energy Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -2.11 -24.77 -9.82 22.34 -59.35

Competitive Comparison of Vertex Energy's Degree of Operating Leverage

For the Oil & Gas Refining & Marketing subindustry, Vertex 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.


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

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

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


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Vertex Energy Degree of Operating Leverage Calculation

Vertex Energy's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -37.295 (Jun. 2024) / 64.718 (Jun. 2023) - 1 )/( 3196.539 (Jun. 2024) / 3113.844 (Jun. 2023) - 1 )
=-1.5763/0.0266
=-59.35***

* 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.


Vertex Energy  (OTCPK:VTNRQ) 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.


Vertex Energy Degree of Operating Leverage Related Terms

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


Vertex Energy Business Description

Industry
Traded in Other Exchanges
N/A
Address
1331 Gemini Street, Suite 250, Houston, TX, USA, 77058
Vertex Energy Inc is an environmental services company that recycles industrial waste streams and off-specification commercial chemical products. Its operating segments are Refining and Marketing, and Black Oil and Recovery. The company generates maximum revenue from the Refining and Marketing segment. The company collects used oil from businesses such as oil change service stations, automotive repair shops, petroleum refineries, and petrochemical manufacturing operations.
Executives
Odeh Khoury director 6 GREYTON LN, HOUSTON TX 77024
Christopher Allen Stratton director 1331 GEMINI STREET, #250, HOUSTON TX 77058
Alvaro Ruiz officer: Chief Strategy Officer 86 S KNIGHTS CROSSING DR, THE WOODLANDS TX 77382
James Gary Rhame officer: Chief Operating Officer 2601 RYDER COURT, LEAGUE CITY TX 77573
Benjamin P Cowart director, 10 percent owner, officer: CEO AND PRESIDENT 2506 DEEP OAK COURT, HOUSTON TX 77059
Douglas Scott Haugh officer: Chief Commercial Officer 865 DUNHAM STREET, DANIEL ISLAND SC 29492
Karen Kay Maston director 3770 OLYMPIA DRIVE, HOUSTON TX 77019
David L Phillips director P.O. BOX 37167, HOUSTON TX 77237
John Noel Strickland officer: COO 2030 ASHTON WAY, BAINBRIDGE GA 39819
Timothy C Harvey director 15 COLONEL WINSTEAD DRIVE, BRENTWOOD TN 37027
James P Gregory director 1225 EYE STREET NW SUITE 900, WASHINGTON DC 22209
David Peel officer: COO 1427 SHELL FISH CT., MT. PLEASANT SC 29466
Dan Borgen director 9500 NEW CENTURY, PASADENA TX 77507
Matthew Lieb officer: CHIEF OPERATING OFFICER 13500 EVENING CREEK DRIVE #440, SAN DIEGO CA 92128
Chris Carlson officer: CFO AND SECRETARY 4418 CEDAR RIDGE TRAIL, HOUSTON TX 77059