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BBSI (Barrett Business Services) Degree of Operating Leverage : 0.72 (As of Mar. 2025)


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What is Barrett Business Services Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Barrett Business Services's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.72. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BBSI's Degree of Operating Leverage is ranked better than
56.25% of 1008 companies
in the Business Services industry
Industry Median: 0.99 vs BBSI: 0.72

Barrett Business Services Degree of Operating Leverage Historical Data

The historical data trend for Barrett Business Services'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.

Barrett Business Services Degree of Operating Leverage Chart

Barrett Business Services 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 4.65 1.94 2.72 3.99 0.38

Barrett Business Services 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 0.65 0.85 0.55 0.38 0.72

Competitive Comparison of Barrett Business Services's Degree of Operating Leverage

For the Staffing & Employment Services subindustry, Barrett Business Services'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.


Barrett Business Services's Degree of Operating Leverage Distribution in the Business Services Industry

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

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


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Barrett Business Services Degree of Operating Leverage Calculation

Barrett Business Services'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
=( 70.865 (Mar. 2025) / 66.803 (Mar. 2024) - 1 )/( 1171.315 (Mar. 2025) / 1080.422 (Mar. 2024) - 1 )
=0.0608/0.0841
=0.72***

* 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.


Barrett Business Services  (NAS:BBSI) 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.


Barrett Business Services Degree of Operating Leverage Related Terms

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


Barrett Business Services Business Description

Traded in Other Exchanges
Address
8100 NE Parkway Drive, Suite 200, Vancouver, WA, USA, 98662
Barrett Business Services Inc is a provider of payroll administrative services and staffing services. The company categories of services include professional employer services and staffing. Professional employer services offer payroll management, payroll tax services, and workers' compensation coverage solutions, as well as workforce management services, including hiring and termination of employees. Staffing offers temporary staffing services, as well as contract staffing, long-term or indefinite on-site management, and direct placement services. The company operates in the United States of America. It generates maximum revenue from the Professional employer service fees.
Executives
Thomas B. Cusick director 14375 NW SCIENCE PARK DR., PORTLAND OR 97229
Thomas J Carley director 8100 NE PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662
Joseph Stephen Clabby director 8100 NE PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662
Gary Kramer officer: VP - Finance, Treas. & Sec. 8100 N.E. PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662
Gerald Blotz officer: VP and COO--Field Operations 8100 N.E. PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662
Anthony Meeker director 8100 NE PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662
Carla A Moradi director 8100 N.E. PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662
Jon L Justesen director 8100 NE PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662
Alexandra Morehouse Mcreynolds director 8100 N.E. PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662
Diane L Dewbrey director FIFTH THIRD BANCORP, 38 FOUNTAIN SQ PLZ, CINCINNATI OH 45263
Vincent P Price director 8100 N.E. PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662
James B Hicks director 8100 NE PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662
James R Potts officer: EVP Gen Counsel & Secretary 8100 NE PARKWAY DRIVE SUITE 200, VANCOUVER WA 98662
Anthony J Harris officer: Chief Financial Officer 8100 NE PARKWAY DRIVE SUITE 200, VANCOUVER WA 98662
Michael L Elich officer: VP and Chief Operating Officer 8100 NE PARKWAY DRIVE, SUITE 200, VANCOUVER WA 98662