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EAF (GrafTech International) Degree of Operating Leverage : 3.71 (As of Mar. 2025)


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What is GrafTech International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. GrafTech International's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.71. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EAF's Degree of Operating Leverage is ranked worse than
73.6% of 2936 companies
in the Industrial Products industry
Industry Median: 1.17 vs EAF: 3.71

GrafTech International Degree of Operating Leverage Historical Data

The historical data trend for GrafTech International'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.

GrafTech International Degree of Operating Leverage Chart

GrafTech International 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 1.20 -1.39 0.78 2.78 4.69

GrafTech International 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 4.07 6.25 18.10 4.69 3.71

Competitive Comparison of GrafTech International's Degree of Operating Leverage

For the Electrical Equipment & Parts subindustry, GrafTech International'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.


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

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

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


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GrafTech International Degree of Operating Leverage Calculation

GrafTech International'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
=( -87.443 (Mar. 2025) / -232.993 (Mar. 2024) - 1 )/( 514.037 (Mar. 2025) / 618.282 (Mar. 2024) - 1 )
=-0.6247/-0.1686
=3.71***

* 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.


GrafTech International  (NYSE:EAF) 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.


GrafTech International Degree of Operating Leverage Related Terms

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


GrafTech International Business Description

Traded in Other Exchanges
Address
982 Keynote Circle, Brooklyn Heights, Independence, OH, USA, 44131
GrafTech International Ltd is a manufacturer of high-quality graphite electrode products essential to the production of EAF steel and other ferrous and non-ferrous metals. The company has only reportable segment, Industrial Materials, is comprised of its two product categories: graphite electrodes and petroleum needle coke products. Petroleum needle coke is key raw material used in the production of graphite electrodes.
Executives
Timothy K Flanagan officer: CFO, VP Finance & Treasurer C/O GRAFTECH INTERNATIONAL LTD., 982 KEYNOTE CIRCLE, BROOKLYN HEIGHTS OH 44131
Brookfield Private Funds Holdings Inc. director, 10 percent owner THREE WORLD FINANCIAL CENTER, 200 VESEY STREET, 11TH FLOOR, NEW YORK NY 10281
Bcp Gp Ltd director, 10 percent owner, See Remarks C/O BROOKFIELD ASSET MANAGEMENT INC., BROOKFIELD PLACE, 181 BAY STREET, SUITE, TORONTO A6 M5J2T3
Diego Donoso director 2211 H.H. DOW WAY, MIDLAND MI 48674
Marcel Kessler director, officer: CEO and President 982 KEYNOTE CIRCLE, BROOKLYN HEIGHTS OH 44131
Jean-marc Germain director 982 KEYNOTE CIRCLE, BROOKLYN HEIGHTS OH 44131
David J. Rintoul director, officer: President and CEO 600 GRANT STREET, SUITE 6100, PITTSBURGH PA 15219
Debra Fine director 590 MADISON AVENUE, 5TH FLOOR, NEW YORK NY 10022
Henry R. Keizer director MONTPELIER HOUSE, 94 PITTS BAY ROAD, PEMBROKE D0 HM 08
Leslie D Dunn director
Brookfield Business Partners Ltd director, 10 percent owner 73 FRONT STREET, 5TH FLOOR, HAMILTON D0 HM12
Bcp Iv Bermuda Investor Lp director, 10 percent owner 181 BAY STREET, SUITE 300, BROOKFIELD PLACE, TORONTO A6 M5J 2T3
Brookfield Private Equity Group Holdings Lp director, 10 percent owner C/O BROOKFIELD ASSET MANAGEMENT INC., BROOKFIELD PLACE, 181 BAY STREET, SUITE, TORONTO A6 M5J2T3
Brookfield Us Inc. director, 10 percent owner BROOKFIELD PLACE, 250 VESEY STREET, 15TH FLOOR, NEW YORK NY 10281-1023
Brookfield Private Equity Holdings Llc director, 10 percent owner C/O BROOKFIELD ASSET MANAGEMENT INC., BROOKFIELD PLACE, 250 VESEY STREET, NEW YORK NY 10281-1023