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GATX (GATX) Degree of Operating Leverage : 1.03 (As of Jun. 2024)


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What is GATX Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. GATX's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 1.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

GATX's Degree of Operating Leverage is ranked worse than
51.08% of 1020 companies
in the Business Services industry
Industry Median: 0.935 vs GATX: 1.03

GATX Degree of Operating Leverage Historical Data

The historical data trend for GATX'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.

GATX Degree of Operating Leverage Chart

GATX 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 -0.56 9.59 6.64 -1.62 2.78

GATX 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 2.60 3.36 2.78 3.32 1.03

Competitive Comparison of GATX's Degree of Operating Leverage

For the Rental & Leasing Services subindustry, GATX'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.


GATX's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, GATX's Degree of Operating Leverage distribution charts can be found below:

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



GATX Degree of Operating Leverage Calculation

GATX'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
=( 518.4 (Jun. 2024) / 458.3 (Jun. 2023) - 1 )/( 1495.4 (Jun. 2024) / 1325.8 (Jun. 2023) - 1 )
=0.1311/0.1279
=1.03***

* 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.


GATX  (NYSE:GATX) 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.


GATX Degree of Operating Leverage Related Terms

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


GATX Business Description

Industry
Traded in Other Exchanges
Address
233 South Wacker Drive, Chicago, IL, USA, 60606-7147
GATX Corp is a provider of railcar leasing and maintenance services. GATX operates four business segments: rail North America, rail international, and portfolio management. The rail business offers railcar leasing and maintenance, as well as asset-related, financial, and management services. The company owns and leases fleets in North America, Europe, and Asia, which consist of tank and freight railcars. Industries served include refining and petroleum, chemicals and plastics, railroads and other transportation, mining, and food and agriculture.
Executives
Paul F Titterton officer: VP & Chief Commercial Officer 222 W. ADAMS ST., CHICAGO IL 60606
Robert Zmudka officer: Sr. VP & Chief Comm. Off. 222 W. ADAMS ST., CHICAGO IL 60606
Anne L Arvia director ONE NATIONWIDE PLAZA 1-38-06, COLUMBUS OH 43215
Kevin Hillesland officer: SVP, Structured Finance 233 S. WACKER DR., CHICAGO IL 60606
Geoffrey Phillips officer: Sr. VP, Operations 233 S. WACKER DR., CHICAGO IL 60606
Robert C Lyons officer: VP - Investor Relations 500 WEST MONROE ST, CHICAGO IL 60661
Jeffery R. Young officer: Vice President, Tax 222 W. ADAMS ST., CHICAGO IL 60606
Thomas A. Ellman officer: EVP & Pres., Rail N. America 222 W. ADAMS ST., CHICAGO IL 60606
John Sbragia officer: SVP, Engineering and Quality 233 S. WACKER DR., CHICAGO IL 60606
Shelley J Bausch director 15710 JOHN F. KENNEDY BLVD., SUITE 300, HOUSTON TX 77032
Aken Jennifer Van officer: SVP, Treas. & Chief Risk Off. GATX CORPORATION, 233 S. WACKER DR., CHICAGO IL 60606
Jennifer Mcmanus officer: Sr. VP & Controller C/O GATX CORPORATION, 233 S. WACKER DR., CHICAGO IL 60606
Brian L Glassberg officer: EVP, General Counsel & Secy. GATX CORPORATION, 233 S. WACKER DR., CHICAGO IL 60606
Deborah A Golden officer: Sr. VP, Gen. Couns. & Sec'y 500 WEST MONROE STREET, CHICAGO IL 60661
Brian A Kenney director, officer: Chairman, President and CEO GATX CORP, 500 WEST MONROE STREET, CHICAGO IL 60661