GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Better Home & Finance Holding Co (NAS:BETR) » Definitions » Degree of Operating Leverage

BETR (Better Home & Finance Holding Co) Degree of Operating Leverage : -0.75 (As of Mar. 2025)


View and export this data going back to 2023. Start your Free Trial

What is Better Home & Finance Holding Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Better Home & Finance Holding Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Better Home & Finance Holding Co's Degree of Operating Leverage or its related term are showing as below:

BETR's Degree of Operating Leverage is ranked better than
82.61% of 46 companies
in the Banks industry
Industry Median: 0.985 vs BETR: -0.75

Better Home & Finance Holding Co Degree of Operating Leverage Historical Data

The historical data trend for Better Home & Finance Holding 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.

Better Home & Finance Holding Co Degree of Operating Leverage Chart

Better Home & Finance Holding Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- -2.62 0.91 -1.96

Better Home & Finance Holding Co Quarterly Data
Dec21 Mar22 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 -0.60 33.41 -2.57 -1.96 -0.75

Competitive Comparison of Better Home & Finance Holding Co's Degree of Operating Leverage

For the Mortgage Finance subindustry, Better Home & Finance Holding 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.


Better Home & Finance Holding Co's Degree of Operating Leverage Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Better Home & Finance Holding Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Better Home & Finance Holding Co's Degree of Operating Leverage falls into.


;
;

Better Home & Finance Holding Co Degree of Operating Leverage Calculation

Better Home & Finance Holding 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
=( -172.649 (Mar. 2025) / -253.077 (Mar. 2024) - 1 )/( 136.977 (Mar. 2025) / 96.312 (Mar. 2024) - 1 )
=-0.3178/0.4222
=-0.75***

* 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.


Better Home & Finance Holding Co  (NAS:BETR) 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.


Better Home & Finance Holding Co Degree of Operating Leverage Related Terms

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


Better Home & Finance Holding Co Business Description

Traded in Other Exchanges
N/A
Address
285 Fulton Street, Suite A, 80th Floor, 1 World Trade Center, New York, NY, USA, 10007
Better Home & Finance Holding Co is a digital-first homeownership company whose services include mortgage, real estate, title, and homeowners insurance. The company has combined technology innovation and fresh thinking with a deep customer focus with the goal of revolutionizing the homeownership industry.
Executives
Thor Bjorgolfsson director, 10 percent owner, officer: Chairman 430 PARK AVENUE, 2ND FLOOR, NEW YORK NY 10022
J. Calamari Nicholas officer: CAO and Senior Counsel 450 PARK AVE, STE. 2702, NEW YORK NY 10022
Riaz Valani director, 10 percent owner C/O OUSTER, INC., 350 TREAT AVENUE, SAN FRANCISCO CA 94110
Sb Management Ltd 10 percent owner 9TH FLOOR, AL SILA TOWER, ADGM SQUARE, AL MARYAH ISLAND, ABU DHABI C0 NA
Softbank Group Corp 10 percent owner 1-7-1 KAIGAN, MINATO-KU, TOKYO M0 105-7537
Kevin J Ryan officer: Chief Financial Officer C/O WESLEY JESSEN VISIONCARE INC, 333 EAST HOWARD AVE, DES PLAINES IL 60018-5903
Vishal Garg director, 10 percent owner, officer: Chief Executive Officer C/O MRU HOLDINGS, INC., 1114 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Activant Ventures Iii, Lp director, 10 percent owner 323 RAILROAD AVENUE, 2ND FLOOR, GREENWICH CT 06830
Activant Ventures Iii Opportunities Fund 1, Lp director, 10 percent owner 323 RAILROAD AVENUE, 2ND FLOOR, GREENWICH CT 06830
Activant Ventures Iii Opportunities Fund 2, Lp director, 10 percent owner 323 RAILROAD AVENUE, 2ND FLOOR, GREENWICH CT 06830
Activant Ventures Iii Opportunities Fund 3, Lp director, 10 percent owner 323 RAILROAD AVE., 2ND FLOOR, GREENWICH CT 06830
Activant Ventures Iii Opportunities Fund 4, Lp director, 10 percent owner 323 RAILROAD AVENUE, 2ND FLOOR, GREENWICH CT 06830
Activant Ventures Iii Opportunities Fund 6, Lp director, 10 percent owner 323 RAILROAD AVENUE, 2ND FLOOR, GREENWICH CT 06830
Paula Tuffin officer: General Counsel and CCO 3 WORLD TRADE CENTER, 175 GREENWICH ST 57TH FLOOR, NEW YORK NY 10007
Svf Ii Beaver (de) Llc 10 percent owner 300 EL CAMINO REAL, MENLO PARK CA 94025