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ARKO (ARKO) Degree of Operating Leverage : 2.38 (As of Mar. 2025)


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What is ARKO Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ARKO's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ARKO's Degree of Operating Leverage is ranked worse than
63.8% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.305 vs ARKO: 2.38

ARKO Degree of Operating Leverage Historical Data

The historical data trend for ARKO'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.

ARKO Degree of Operating Leverage Chart

ARKO Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -996.09 0.88 0.93 -7.89 1.17

ARKO 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 -13.99 -7.75 1.86 1.17 2.38

Competitive Comparison of ARKO's Degree of Operating Leverage

For the Specialty Retail subindustry, ARKO'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.


ARKO's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, ARKO's Degree of Operating Leverage distribution charts can be found below:

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


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ARKO Degree of Operating Leverage Calculation

ARKO'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
=( 107.251 (Mar. 2025) / 139.384 (Mar. 2024) - 1 )/( 8488.413 (Mar. 2025) / 9396.809 (Mar. 2024) - 1 )
=-0.2305/-0.0967
=2.38***

* 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.


ARKO  (NAS:ARKO) 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.


ARKO Degree of Operating Leverage Related Terms

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


ARKO Business Description

Traded in Other Exchanges
N/A
Address
8565 Magellan Parkway, Suite 400, Richmond, VA, USA, 23227-1150
ARKO Corp owns and operates convenience stores in the United States. Some of its regional store brands include Stop, Admiral, Apple Market, BreadBox, E-Z Mart, fas mart, Li'l Cricket, and Next Door Store. Its retail store offers hot food service, beverages, cigarettes & other tobacco products, candy, salty snacks, grocery, beer, and general merchandise. ARKO operates in four segments: Retail segment, Wholesale segment, fleet fueling segment, and GPM Petroleum segment. The company derives the majority of its revenue from retail and wholesale distribution of fuel.
Executives
Morris Willner director, 10 percent owner C/O ARKO CORP., 650 FIFTH AVENUE, FLOOR 10, NEW YORK NY 10019
Karet Laura Shapira director 301 GLADE RUN LANE, PITTSBURGH PA 15238
Avram Z Friedman director DAVIDSON KEMPNER CAPITAL MANAGEMENT LP, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Eyal Nuchamovitz officer: See Remarks 3284 NE 211 TERRACE, AVENTURA FL 33180
Kempner Partners Davidson 10 percent owner C/O MHD MANAGEMENT CO., 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Gpm Owner Llc 10 percent owner 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Starlette B Johnson director
Davidson Kempner Long-term Distressed Opportunities Fund Ii Lp 10 percent owner DK LONG-TERM DISTRESSED OPPS GP II LLC, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Capital Management Lp 10 percent owner 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Long-term Distressed Opportunties International Master Fund Ii Lp 10 percent owner DK LONG-TERM DISTRESSED OPPS GP II LLC, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Anthony Alexander Yoseloff 10 percent owner DAVIDSON KEMPNER CAPITAL MANAGEMENT LP, 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner Institutional Partners, L.p. 10 percent owner C/O DAVIDSON KEMPNER ADVISERS INC., 520 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Davidson Kempner International, Ltd. 10 percent owner C/O OFFSHORE INCORPORATION LTD, OFFSHORE, INCORPORATION CENTRE, POBOX 957, RD TOWN, TORTOLA D8 00000
Andrew R Heyer director 501 MADISON AVENUE, FLOOR 5, NEW YORK NY 10019
Michael J Gade director 5501 HEADQUARTERS DRIVE, PLANO TX 75024