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D (Dominion Energy) Degree of Operating Leverage : 3.42 (As of Jun. 2024)


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What is Dominion Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Dominion Energy's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 3.42. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

D's Degree of Operating Leverage is ranked worse than
75.86% of 493 companies
in the Utilities - Regulated industry
Industry Median: 0.68 vs D: 3.42

Dominion Energy Degree of Operating Leverage Historical Data

The historical data trend for Dominion 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.

Dominion Energy Degree of Operating Leverage Chart

Dominion Energy 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 0.60 -2.39 1.88 1.18 -0.80

Dominion Energy 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 2.98 3.55 -0.80 1.08 3.42

Competitive Comparison of Dominion Energy's Degree of Operating Leverage

For the Utilities - Regulated Electric subindustry, Dominion 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.


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

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

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



Dominion Energy Degree of Operating Leverage Calculation

Dominion Energy'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
=( 3811 (Jun. 2024) / 4149 (Jun. 2023) - 1 )/( 14462 (Jun. 2024) / 14815 (Jun. 2023) - 1 )
=-0.0815/-0.0238
=3.42***

* 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.


Dominion Energy  (NYSE:D) 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.


Dominion Energy Degree of Operating Leverage Related Terms

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


Dominion Energy Business Description

Address
120 Tredegar Street, Richmond, VA, USA, 23219
Based in Richmond, Virginia, Dominion Energy is an integrated energy company with over 30 gigawatts of electric generation capacity and more than 90,000 miles of electric transmission and distribution lines. Dominion is constructing a rate-regulated 5.2 GW wind farm off the Virginia Beach coast.
Executives
Joseph M Rigby director SOUTH JERSEY INDUSTRIES, 1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Robert M Blue officer: Senior Vice President 120 TREDEGAR STREET, RICHMOND VA 23219
Diane Leopold other: President - Dominion Energy 120 TREDEGAR STREET, RICHMOND VA 23219
Susan N Story director ONE ENERGY PLACE, PENSCOLA FL 32520
Steven D Ridge officer: SVP & CFO 120 TREDEGAR STREET, RICHMOND VA 23219
Kristin G Lovejoy director 120 TREDEGAR STREET, RICHMOND VA 23219
William Keller Kissam officer: President - Dominion Energy SC DOMINION ENERGY, 120 TREDEGAR STREET, RICHMOND VA 23219
James R. Chapman officer: SVP, CFO & Treasurer 120 TREDEGAR STREET, RICHMOND VA 23219
Mark J Kington director 100 TREDEGAR STREET, RICHMOND VA 23219
Farrell Thomas F Ii officer: Executive Vice President P O BOX 26532, RICHOMOND VA 23261
Edward H Baine officer: President - Dominion Energy VA 600 CANAL PLACE, RICHMOND VA 23219
Daniel G. Stoddard officer: SVP and Chief Nuclear Officer 5000 DOMINION BOULEVARD, GLEN ALLEN VA 23060
Donald R. Raikes officer: President - Gas Distribution 120 TREDEGAR STREET, RICHMOND VA 23219
Paul E Ruppert officer: President-Gas Trans & Storage 5000 DOMINION BOULEVARD, GLEN ALLEN VA 23060
Michael E Szymanczyk director DOMINION RESOURCES, INC., 100 TREDEGAR STREET, RICHMOND VA 23219