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ADC (Agree Realty) Degree of Operating Leverage : 1.29 (As of Mar. 2025)


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What is Agree Realty Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Agree Realty's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.29. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ADC's Degree of Operating Leverage is ranked worse than
51.51% of 728 companies
in the REITs industry
Industry Median: 1.215 vs ADC: 1.29

Agree Realty Degree of Operating Leverage Historical Data

The historical data trend for Agree Realty'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.

Agree Realty Degree of Operating Leverage Chart

Agree Realty 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 0.50 0.87 0.93 0.64 1.29

Agree Realty 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 0.70 0.95 1.21 1.29 1.29

Competitive Comparison of Agree Realty's Degree of Operating Leverage

For the REIT - Retail subindustry, Agree Realty'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.


Agree Realty's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Agree Realty's Degree of Operating Leverage distribution charts can be found below:

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


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Agree Realty Degree of Operating Leverage Calculation

Agree Realty'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
=( 311.164 (Mar. 2025) / 264.636 (Mar. 2024) - 1 )/( 636.801 (Mar. 2025) / 560.33 (Mar. 2024) - 1 )
=0.1758/0.1365
=1.29***

* 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.


Agree Realty  (NYSE:ADC) 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.


Agree Realty Degree of Operating Leverage Related Terms

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


Agree Realty Business Description

Industry
Traded in Other Exchanges
Address
32301 Woodward Avenue, Royal Oak, MI, USA, 48073
Agree Realty Corporation operates as a fully integrated real estate investment trust mainly focused on the ownership, acquisition, development and management of retail properties net leased to industry-tenants. The Company is mainly in the business of acquiring, developing and managing retail real estate. Some of its properties in the portfolio include Walmart, 7-Eleven, Wawa, Gerber Collision and others.
Executives
John Jr Rakolta director 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304
Greg Lehmkuhl director 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304
Stephen Breslin officer: Chief Accounting Officer 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304
Richard Agree officer: Chief Executive Officer 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48334
Joey Agree officer: Chief Operating Officer 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48034
Craig Erlich officer: CHIEF OPERATING OFFICER 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304-2324
Peter Coughenour officer: CHIEF FINANCIAL OFFICER 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304
David A. Wolff officer: CHIEF ACCOUNTING OFFICER 70 E. LONG LAKE RD., BLOOMFIELD HILLS MI 48304-2324
Karen Dearing director 27777 FRANKLIN ROAD, SUITE 200, SOUTHFIELD MI 48034
Nicole Witteveen officer: EVP, PEOPLE & CULTURE 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304
Michael Judlowe director 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304
Michael Hollman director 7930 JONES BRANCH DRIVE, SUITE 1124, MCLEAN VA 22102
Jerome R Rossi director 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48304-2324
Danielle M Spehar officer: GENERAL COUNSEL 70 E. LONG LAKE RD, BLOOMFIELD HILLS MI 48304
Merrie S. Frankel director 70 E. LONG LAKE ROAD, BLOOMFIELD HILLS MI 48034