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WTTR (Select Water Solutions) Degree of Operating Leverage : -61.67 (As of Mar. 2025)


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What is Select Water Solutions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Select Water Solutions's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -61.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

WTTR's Degree of Operating Leverage is ranked better than
96.68% of 903 companies
in the Oil & Gas industry
Industry Median: 0.88 vs WTTR: -61.67

Select Water Solutions Degree of Operating Leverage Historical Data

The historical data trend for Select Water Solutions'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.

Select Water Solutions Degree of Operating Leverage Chart

Select Water Solutions 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 87.90 -3.34 -2.75 -4.04 -14.68

Select Water Solutions 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 -43.44 16.19 9.72 -14.68 -61.67

Competitive Comparison of Select Water Solutions's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, Select Water Solutions'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.


Select Water Solutions's Degree of Operating Leverage Distribution in the Oil & Gas Industry

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

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


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Select Water Solutions Degree of Operating Leverage Calculation

Select Water Solutions'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
=( 66.522 (Mar. 2025) / 16.512 (Mar. 2024) - 1 )/( 1459.911 (Mar. 2025) / 1535.309 (Mar. 2024) - 1 )
=3.0287/-0.0491
=-61.67***

* 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.


Select Water Solutions  (NYSE:WTTR) 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.


Select Water Solutions Degree of Operating Leverage Related Terms

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


Select Water Solutions Business Description

Traded in Other Exchanges
Address
1820 North I-35, Gainesville, TX, USA, 76240
Select Water Solutions Inc provides sustainable water and chemical solutions to the energy industry. These solutions are supported by the company's critical water infrastructure assets, chemical manufacturing, and water treatment and recycling capabilities. Its reportable segments are Water Services, Water Infrastructure and Chemical Technologies. It generates the majority of its revenue from Water Services segment.
Executives
John Schmitz director, officer: Chairman & CEO 920 MEMORIAL CITY WAY, SUITE 800, HOUSTON TX 77024
Michael Skarke officer: Exec. VP, Water Solutions 1820 NORTH I-35, P.O. BOX 1715, GAINESVILLE TX 76241
Brian Szymanski officer: Chief Accounting Officer & VP 1820 I-35 FRONTAGE ROAD, GAINESVILLE TX 76240
Nick L Swyka officer: CFO & Senior VP 515 POST OAK BLVD., STE. 200, HOUSTON TX 77027
Christopher Kile George officer: See Remarks 5660 WICKERSHAM LN, HOUSTON TX 77056
Troy W Thacker director C/O FOX PAINE & CO, 950 TOWER LANE, FOSTER CITY CA 94404
Christina M Ibrahim officer: SVP, GC and CCO 2000 ST. JAMES PLACE, HOUSTON TX 77056
Robin H Fielder director 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Luis M Fernandez-moreno director ASHLAND INC., 8145 BLAZER DRIVE, WILMINGTON DE 19808
Suzanne Colbert officer: Chief Technology Officer 1233 WEST LOOP SOUTH, SUITE 1400, HOUSTON TX 77027
Gayle Burleson director ONE CONCHO CENTER, 600 WEST ILLINOIS AVENUE, MIDLAND TX 79701
Scf Partners, Inc. 10 percent owner, other: Member of Group 600 TRAVIS STE 6600, HOUSTON TX 77002
Scf-vii(a), L.p. 10 percent owner, other: Member of Group 600 TRAVIS ST., STE. 6600, HOUSTON TX 77002
Scf-vii(a), G.p., Limited Partnership 10 percent owner, other: Member of Group 600 TRAVIS, SUITE 6600, HOUSTON TX 77002
Holli C. Ladhani director, officer: President and CEO 2800 POST OAK BLVD., SUITE 4500, HOUSTON TX 77056