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BNTGY (Brenntag SE) Degree of Operating Leverage : 1.13 (As of Jun. 2024)


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What is Brenntag SE Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Brenntag SE's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 1.13. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BNTGY's Degree of Operating Leverage is ranked better than
55.14% of 1498 companies
in the Chemicals industry
Industry Median: 1.6 vs BNTGY: 1.13

Brenntag SE Degree of Operating Leverage Historical Data

The historical data trend for Brenntag SE'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.

Brenntag SE Degree of Operating Leverage Chart

Brenntag SE 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 1.12 0.41 0.06 2.50 1.21

Brenntag SE 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 0.12 2.74 1.21 1.31 1.13

Competitive Comparison of Brenntag SE's Degree of Operating Leverage

For the Specialty Chemicals subindustry, Brenntag SE'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.


Brenntag SE's Degree of Operating Leverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Brenntag SE's Degree of Operating Leverage distribution charts can be found below:

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



Brenntag SE Degree of Operating Leverage Calculation

Brenntag SE'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
=( 1066.767 (Jun. 2024) / 1211.446 (Jun. 2023) - 1 )/( 17509.311 (Jun. 2024) / 19524.063 (Jun. 2023) - 1 )
=-0.1194/-0.1032
=1.16***

* 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.


Brenntag SE  (OTCPK:BNTGY) 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.


Brenntag SE Degree of Operating Leverage Related Terms

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


Brenntag SE Business Description

Industry
Traded in Other Exchanges
Address
Messeallee 11, Essen, NW, DEU, 45131
Brenntag SE manufactures, distributes, and sells chemicals and chemical-based products. It operates in two reportable segments life science and material science. Life science chemicals are used to produce cosmetics, food, animal nutrition, and pharmaceuticals. The material science chemicals are used to produce soaps and detergents, coatings, and paints as well as the extraction of oil and gas. The company organizes itself into four segments based on geography EMEA, North America, Latin America, and APAC.

Brenntag SE Headlines

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