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ARCB (ArcBest) Degree of Operating Leverage : -7.27 (As of Mar. 2025)


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What is ArcBest Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ArcBest's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -7.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ARCB's Degree of Operating Leverage is ranked better than
87.44% of 979 companies
in the Transportation industry
Industry Median: 0.86 vs ARCB: -7.27

ArcBest Degree of Operating Leverage Historical Data

The historical data trend for ArcBest'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.

ArcBest Degree of Operating Leverage Chart

ArcBest 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 -40.68 6.07 1.21 4.22 -2.88

ArcBest 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 4.70 4.69 -8.34 -2.88 -7.27

Competitive Comparison of ArcBest's Degree of Operating Leverage

For the Trucking subindustry, ArcBest'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.


ArcBest's Degree of Operating Leverage Distribution in the Transportation Industry

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

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


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ArcBest Degree of Operating Leverage Calculation

ArcBest'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
=( 237.072 (Mar. 2025) / 167.688 (Mar. 2024) - 1 )/( 4109.677 (Mar. 2025) / 4357.768 (Mar. 2024) - 1 )
=0.4138/-0.0569
=-7.27***

* 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.


ArcBest  (NAS:ARCB) 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.


ArcBest Degree of Operating Leverage Related Terms

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


ArcBest Business Description

Industry
Traded in Other Exchanges
Address
8401 McClure Drive, Fort Smith, AR, USA, 72916
ArcBest Corp is an integrated logistics company that leverages technology and a full suite of shipping and logistics solutions to meet customers' supply chain needs. The company has two reportable operating segments: Asset-Based, which generates maximum revenue, and Asset-Light. The Asset-Based segment's operations include national, inter-regional, and regional transportation of general commodities through standard, expedited, and guaranteed less-than-truckload services. The Asset-Light segment represents the company's offerings in ground expedite, intermodal, household goods moving, managed transportation, warehousing and distribution, and international freight transportation for air, ocean, and ground.
Executives
Michael P Hogan director C/O GAMESTOP CORP., 625 WESTPORT PARKWAY, GRAPEVINE TX 76051
John Matthew Beasley officer: CFO and Treasurer(1) 8401 MCCLURE DRIVE, FORT SMITH AR 72916
Craig E Philip director ARCBEST CORPORATION, 3801 OLD GREENWOOD ROAD, FORT SMITH AR 72903
Michael E Newcity officer: Chief Financial Officer - VP ARCBEST CORPORATION, 3801 OLD GREENWOOD ROAD, FORT SMITH AR 72903
Salvatore A Abbate director 1000 ABERNATHY ROAD NE., BUILDING 400, SUITE 1700, ATLANTA GA 30328
Erin K Gattis officer: VP - Human Resources ARCBEST CORPORATION, 3801 OLD GREENWOOD ROAD, FORT SMITH AR 72903
Janice E Stipp director 1281 COVINGTON ROAD, BLOOMFIELD HILLS MI 48301
Kathleen D. Mcelligott director MCKESSON CORPORATION, 6555 NORTH STATE HWY 161, IRVING TX 75039
Anderson Dennis L Ii officer: Vice President - Strategy ARCBEST CORPORATION, 3801 OLD GREENWOOD ROAD, FORT SMITH AR 72903
Steven Spinner director C/O UNITED NATURAL FOODS, INC., 260 LAKE ROAD, DAYVILLE CT 06241
Judy R Mcreynolds officer: Vice President - Controller ARCBEST CORPORATION, PO BOX 10048, FORT SMITH AR 72917-0048
Michael R Johns officer: VP - Gen Counsel & Corp Sec ARCBEST CORPORATION, 3801 OLD GREENWOOD ROAD, FORT SMITH AR 72903
Seth Runser officer: President of ABF Freight 8401 MCCLURE DRIVE, FORT SMITH AR 72916
Christopher A Adkins officer: VP - Yield & Management (1) 8401 MCCLURE DR., FORT SMITH AR 72916
Jason T Parks officer: VP - Controller (1) 8401 MCCLURE DRIVE, FORT SMITH AR 72916