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Xylem (XYL) Degree of Operating Leverage : 6.25 (As of Mar. 2025)


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What is Xylem Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Xylem's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XYL's Degree of Operating Leverage is ranked worse than
82.13% of 2932 companies
in the Industrial Products industry
Industry Median: 1.09 vs XYL: 6.25

Xylem Degree of Operating Leverage Historical Data

The historical data trend for Xylem'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.

Xylem Degree of Operating Leverage Chart

Xylem 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 3.53 9.50 -2.63 1.19 4.02

Xylem 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 1.21 2.10 1.88 4.02 6.25

Competitive Comparison of Xylem's Degree of Operating Leverage

For the Specialty Industrial Machinery subindustry, Xylem'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.


Xylem's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Xylem's Degree of Operating Leverage distribution charts can be found below:

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


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Xylem Degree of Operating Leverage Calculation

Xylem'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
=( 1146 (Mar. 2025) / 759 (Mar. 2024) - 1 )/( 8598 (Mar. 2025) / 7949 (Mar. 2024) - 1 )
=0.5099/0.0816
=6.25***

* 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.


Xylem  (NYSE:XYL) 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.


Xylem Degree of Operating Leverage Related Terms

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


Xylem Business Description

Industry
Address
300 Water Street SE, Washington, DC, USA, 20003
Xylem is a global leader in water technology and offers a wide range of solutions, including the transport, treatment, testing, and efficient use of water for customers in the utility, industrial, commercial, and residential sectors. Xylem was spun off from ITT in 2011. Based in Rye Brook, New York, Xylem has a presence in over 150 countries and employs 16,200. The company generated $8.6 billion in revenue in 2024.
Executives
Geri-michelle Mcshane officer: Chief Accounting Officer C/O XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Dorothy Trefon Capers officer: Senior Vice President XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Lila Tretikov director 149 NEW MONTGOMERY STREET, FLOOR 6, SAN FRANCISCO CA 94105
Victoria D Harker director 4300 WILSON BOULEVARD, ARLINGTON VA 22203
Rodney Aulick officer: SVP & President, IS&S EVOQUA WATER TECHNOLOGIES CORP., 210 SIXTH AVENUE, PITTSBURGH PA 15222
Franz Cerwinka officer: SVP and President, Emerging Ma XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Jeanne Beliveau-dunn director C/O XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Claudia S Toussaint officer: SVP, GC & Corporate Secretary 5454 W 110TH STREET, OVERLAND PARK KS 66211
William K Grogan officer: SVP & Chief Financial Officer 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Patrick Decker director, officer: President & CEO 9 ROSZEL ROAD, PRINCETON NJ 08540
Lisa Glatch director EVOQUA WATER TECHNOLOGIES CORP., 210 SIXTH AVENUE, PITTSBURGH PA 15222
Lynn C Swann director C/O AMERICAN HOMES 4 RENT, 23975 PARK SORRENTO, SUITE 300, CALABASAS CA 91302
Earl Ray Ellis director ONE LIBERTY PLAZA, 7TH FLOOR, NEW YORK NY 10006
Hayati Yarkadas officer: Senior Vice President C/O TRINSEO S.A., 1000 CHESTERBROOK BOULEVARD, SUITE 300, BERWYN PA 19312
Michael J. Mcgann officer: Senior Vice President 301 WATER STREET, SUITE 200, WASHINGTON DC 20003