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AIV (Apartment Investment & Management Co) Degree of Operating Leverage : -7.86 (As of Mar. 2025)


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What is Apartment Investment & Management Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Apartment Investment & Management Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -7.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Apartment Investment & Management Co's Degree of Operating Leverage or its related term are showing as below:

AIV's Degree of Operating Leverage is ranked better than
82.97% of 734 companies
in the REITs industry
Industry Median: 1.205 vs AIV: -7.86

Apartment Investment & Management Co Degree of Operating Leverage Historical Data

The historical data trend for Apartment Investment & Management Co'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.

Apartment Investment & Management Co Degree of Operating Leverage Chart

Apartment Investment & Management Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -4.59 16.17 35.90 97.91 -6.21

Apartment Investment & Management Co 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 -39.81 0.88 0.06 -6.21 -7.86

Competitive Comparison of Apartment Investment & Management Co's Degree of Operating Leverage

For the REIT - Residential subindustry, Apartment Investment & Management Co'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.


Apartment Investment & Management Co's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Apartment Investment & Management Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Apartment Investment & Management Co's Degree of Operating Leverage falls into.


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Apartment Investment & Management Co Degree of Operating Leverage Calculation

Apartment Investment & Management Co'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
=( -34.818 (Mar. 2025) / -128.668 (Mar. 2024) - 1 )/( 210.829 (Mar. 2025) / 192.93 (Mar. 2024) - 1 )
=-0.7294/0.0928
=-7.86***

* 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.


Apartment Investment & Management Co  (NYSE:AIV) 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.


Apartment Investment & Management Co Degree of Operating Leverage Related Terms

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


Apartment Investment & Management Co Business Description

Traded in Other Exchanges
Address
4582 South Ulster Street, Suite 1450, Denver, CO, USA, 80237
Apartment Investment & Management Co is a self-managed real estate investment trust. It is focused on property development, redevelopment and various other value-creating investment strategies, targeting the U.S multifamily market. Its operating segments are Development and Redevelopment; Operating, and Other. Development and Redevelopment segment consists of properties that are under construction or have not achieved stabilization, as well as land held for development. Operating segment includes 20 residential apartment communities with 5,243 apartment homes that have achieved a stabilized level of operations. Other segment includes The Benson Hotel, company's only hotel. Majority of revenue is gained from Operating Segment.
Executives
Sherry L Rexroad director 2 BAYBERRY CIRCLE, AMBLER PA 19002
Kellie Dreyer officer: Senior Vice President and CAO 4582 S. ULSTER ST. SUITE 1450, DENVER CO 80237
James Patrick Sullivan director 34 SOUTH PEAK, LAGUNA NIGUEL CA 92677
Deborah Smith director 4582 S. ULSTER STREET, SUITE 1450, DENVER CO 80237
Jay P Leupp director 16435 N. SCOTTSDALE ROAD, SUITE 320, SCOTTSDALE AZ 85254
Michael A Stein director 4582 S. ULSTER STREET, SUITE 1100, DENVER CO 80237
Kirk Sykes director C/O ARES COMMERCIAL REAL ESTATE CORP., 245 PARK AVENUE, 42ND FLOOR, NEW YORK NY 10167
Robert A. Miller director 6649 WESTWOOD BLVD, SUITE 500, ORLANDO FL 32821
R Dary Stone director 3344 PEACHTREE ROAD, SUITE 1800, ATLANTA GA 30326
Patricia L Gibson director 545 E JOHN CARPENTER FREEWAY, SUITE 1300, IRVING TX 75062
Quincy Allen director 4582 S. ULSTER STREET, SUITE 1700, DENVER CO 80237
Terry Considine director 4582 SOUTH ULSTER STREET PARKWAY, SUITE 1100, DENVER CO 80237
Jennifer Johnson officer: EVP CAO and General Counsel 4582 S. ULSTER STREET, STE 1400, DENVER CO 80237
Wesley William Powell director, officer: President and CEO 4582 S. ULSTER STREET, SUITE 1100, DENVER CO 80237
Lynn Stanfield officer: EVP and CFO 4582 S. ULSTER STREET, SUITE 1100, DENVER CO 80237