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WFRD (Weatherford International) Degree of Operating Leverage : 10.05 (As of Mar. 2025)


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What is Weatherford International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Weatherford International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 10.05. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

WFRD's Degree of Operating Leverage is ranked worse than
86.53% of 906 companies
in the Oil & Gas industry
Industry Median: 0.99 vs WFRD: 10.05

Weatherford International Degree of Operating Leverage Historical Data

The historical data trend for Weatherford International'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.

Weatherford International Degree of Operating Leverage Chart

Weatherford International 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 5.36 87.23 -24.90 6.72 4.13

Weatherford International 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 3.71 5.24 4.23 4.13 10.05

Competitive Comparison of Weatherford International's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, Weatherford International'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.


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

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

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


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Weatherford International Degree of Operating Leverage Calculation

Weatherford International'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
=( 805 (Mar. 2025) / 747 (Mar. 2024) - 1 )/( 5348 (Mar. 2025) / 5307 (Mar. 2024) - 1 )
=0.0776/0.0077
=10.05***

* 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.


Weatherford International  (NAS:WFRD) 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.


Weatherford International Degree of Operating Leverage Related Terms

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


Weatherford International Business Description

Traded in Other Exchanges
Address
2000 Street James Place, Houston, TX, USA, 77056
Weatherford International provides diversified oilfield services across international markets for an array of oilfield types. The firm is a global market leader in artificial lift and tubular running services. Other key product lines include cementing products, directional drilling, and wireline evaluation.
Executives
Neal P Goldman director 10700 PARKRIDGE BLVD., RESTON VA 20191
Arunava Mitra officer: EVP and CFO 2000 ST. JAMES PLACE, HOUSTON TX 77056
Desmond J Mills officer: VP & Chief Accounting Officer 2000 ST. JAMES PLACE, HOUSTON TX 77056
Scott C Weatherholt officer: EVP, GC & CCO 321 SOUTH BOSTON AVE., SUITE 1000, TULSA OK 74103
Charles M Sledge director 1611 SCENIC MOUNTAIN COURT, KINGWOOD TX 77345
Girish Saligram director, officer: President and CEO 2000 ST. JAMES PLACE, HOUSTON TX 77056
Jacqueline C Mutschler director 2000 ST. JAMES PLACE, HOUSTON TX 77056
Benjamin Duster director 200 E. 84ST, 8TH FLOOR, NEW YORK NY 10028
Joseph H Mongrain officer: EVP and CHRO 2000 ST. JAMES PLACE, HOUSTON TX 77056
Charles Davison officer: EVP - Operational Excellence 2000 ST. JAMES PLACE, HOUSTON TX 77056
H. Keith Jennings officer: EVP and CFO 2000 ST. JAMES PLACE, HOUSTON TX 77056
Mark D Swift officer: President - Western Hemisphere 2000 ST. JAMES PLACE, HOUSTON TX 77056
Christian A Garcia officer: Chief Financial Officer 3000 N. SAM HOUSTON PARKWAY E., BLDG. J-4, HOUSTON TX 77032
John F Glick director TETRA TECHNOLOGIES, INC., 24955 INTERSTATE 45 N, THE WOODLANDS TX 77380
Bates Thomas R Jr director TETRA TECHNOLOGIES, INC., 24955 INTERSTATE 45 N, THE WOODLANDS TX 77380