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XEL (Xcel Energy) Degree of Operating Leverage : 3.24 (As of Mar. 2025)


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What is Xcel Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Xcel Energy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XEL's Degree of Operating Leverage is ranked worse than
73.36% of 488 companies
in the Utilities - Regulated industry
Industry Median: 0.83 vs XEL: 3.24

Xcel Energy Degree of Operating Leverage Historical Data

The historical data trend for Xcel 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.

Xcel Energy Degree of Operating Leverage Chart

Xcel Energy 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 -22.61 0.33 0.61 -0.47 -0.61

Xcel Energy 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 -0.48 -1.00 -1.43 -0.61 3.24

Competitive Comparison of Xcel Energy's Degree of Operating Leverage

For the Utilities - Regulated Electric subindustry, Xcel 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.


Xcel Energy's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Xcel Energy's Degree of Operating Leverage distribution charts can be found below:

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


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Xcel Energy Degree of Operating Leverage Calculation

Xcel Energy'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
=( 2709 (Mar. 2025) / 2759 (Mar. 2024) - 1 )/( 13698 (Mar. 2025) / 13775 (Mar. 2024) - 1 )
=-0.0181/-0.0056
=3.24***

* 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.


Xcel Energy  (NAS:XEL) 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.


Xcel Energy Degree of Operating Leverage Related Terms

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


Xcel Energy Business Description

Address
414 Nicollet Mall, Minneapolis, MN, USA, 55401
Xcel Energy manages utilities serving 3.8 million electric customers and 2.2 million natural gas customers in eight states. Its utilities are Northern States Power, which serves customers in Minnesota, North Dakota, South Dakota, Wisconsin, and Michigan; Public Service Company of Colorado; and Southwestern Public Service Company, which serves customers in Texas and New Mexico. It is one of the largest renewable energy suppliers in the US with more than half of its electricity sales coming from carbon-free energy.
Executives
Frank P Prager officer: SVP, Strategy, Planning & Ext. 414 NICOLLET MALL, MINNEAPOLIS MN 55401
Timothy John O'connor officer: EVP, Chief Operations Officer 414 NICOLLET MALL, MINNEAPOLIS MN 55401
Robert Frenzel director, officer: Chairman, President and CEO 414 NICOLLET MALL, MINNEAPOLIS MN 55401
Amanda J Rome officer: EVP, Group President Utilities 414 NICOLLET MALL, MINNEAPOLIS MN 55401
Timothy A Welsh director 800 NICOLLET MALL, MINNEAPOLIS MN 55402
Richard T Obrien director 6363 SOUTH FIDDLERS GREEN CIRCLE, GREENWOOD VILLAGE CO 80111
Christopher J. Policinski director 4001 LEXINGTON AVENUE N., ARDEN HILLS MN 55126
Daniel Yohannes director 414 NICOLLET MALL, MINNEAPOLIS MN 55014
Charles G Pardee director 10 SOUTH DEARBORN STREET, 54TH FLOOR, CHICAGO IL 60603
Lynn Casey director 414 NICOLLET MALL, MINNEAPOLIS MN 55401
Kim Williams director C/O WEYERHAEUSER COMPANY, 220 OCCIDENTAL AVENUE SOUTH, SEATTLE WA 98104
James T Prokopanko director 25990 BIRCH BLUFF ROAD, EXCELSIOR MN 55331
George J Kehl director 414 NICOLLET MALL, MINNEAPOLIS MN 55401
Megan D Burkhart director 1717 MAIN STREET, DALLAS TX 75201
Netha N. Johnson director 3489 CRESTMOOR DRIVE, WOODBURY MN 55125