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BJ (BJ's Wholesale Club Holdings) Degree of Operating Leverage : 1.87 (As of Apr. 2025)


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What is BJ's Wholesale Club Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. BJ's Wholesale Club Holdings's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 1.87. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for BJ's Wholesale Club Holdings's Degree of Operating Leverage or its related term are showing as below:

BJ's Degree of Operating Leverage is ranked worse than
66.89% of 302 companies
in the Retail - Defensive industry
Industry Median: 0.9 vs BJ: 1.87

BJ's Wholesale Club Holdings Degree of Operating Leverage Historical Data

The historical data trend for BJ's Wholesale Club Holdings'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.

BJ's Wholesale Club Holdings Degree of Operating Leverage Chart

BJ's Wholesale Club Holdings Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.83 -0.41 1.29 2.66 -1.31

BJ's Wholesale Club Holdings Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 0.14 0.24 0.78 -1.31 1.87

Competitive Comparison of BJ's Wholesale Club Holdings's Degree of Operating Leverage

For the Discount Stores subindustry, BJ's Wholesale Club Holdings'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.


BJ's Wholesale Club Holdings's Degree of Operating Leverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, BJ's Wholesale Club Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where BJ's Wholesale Club Holdings's Degree of Operating Leverage falls into.


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BJ's Wholesale Club Holdings Degree of Operating Leverage Calculation

BJ's Wholesale Club Holdings's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 813.286 (Apr. 2025) / 772.226 (Apr. 2024) - 1 )/( 20736.768 (Apr. 2025) / 20164.066 (Apr. 2024) - 1 )
=0.0532/0.0284
=1.87***

* 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.


BJ's Wholesale Club Holdings  (NYSE:BJ) 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.


BJ's Wholesale Club Holdings Degree of Operating Leverage Related Terms

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BJ's Wholesale Club Holdings Business Description

Traded in Other Exchanges
Address
350 Campus Drive, Marlborough, MA, USA, 01752
BJ's Wholesale serves as one of the few warehouse club chains in the United States. Its 250 warehouses are primarily located along the East Coast, most prominently in the New England area. Similar to its warehouse club peers, BJ's charges annual membership fees and keeps costs down by operating a "no-frills" store environment. The company limits the use of distribution centers where possible and stores inventory on pallets directly on the sales floor, often in bulk quantities. The company also offers a limited assortment of 7,000 stock-keeping units at its warehouses to achieve greater procurement scale on select items. About 80% of BJ's net sales come from grocery items and general merchandise, with the remaining 20% stemming from gasoline and other ancillary services.
Executives
Steven L Ortega director C/O L CATTERTON, 599 WEST PUTNAM AVENUE, GREENWICH CT 06830
Robert W. Eddy officer: EVP, Chief Fin. & Admin Off. 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Joseph Mcgrail officer: SVP, Controller C/O BJ'S WHOLESALE CLUB HOLDINGS, INC., 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Monica Schwartz officer: SVP, Chief Digital Officer C/O BJ'S WHOLESALE CLUB HOLDINGS, INC., 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
William C. Werner officer: SVP, Strat. Planning & Anlys. C/O BJ'S WHOLESALE CLUB, INC., 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Robert Allan Steele director 1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Jeff Desroches officer: EVP, Club Operations Officer C/O BJ'S WHOLESALE CLUB, INC., 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Graham Luce officer: SVP, Secretary C/O BJ'S WHOLESALE CLUB, INC., 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Christopher J Baldwin director, officer: President & CEO THE HERSHEY COMPANY, 100 CRYSTAL A DRIVE, HERSHEY PA 17033
Paul Cichocki officer: EVP, Mbmshp, Analyt/Bus Trnsfm C/O BJ'S WHOLESALE CLUB HOLDINGS, INC., 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Laura L. Felice officer: SVP, Controller C/O BJ'S WHOLESALE CLUB, INC., 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Anjana Harve officer: EVP, Chief Information Officer C/O BJ'S WHOLESALE CLUB HOLDINGS, INC., 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Cathy Marie Robinson director C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
Scott Kessler officer: EVP, Chief Information Officer C/O BJ'S WHOLESALE CLUB, INC., 350 CAMPUS DRIVE, MARLBOROUGH MA 01752
Kenneth M. Parent director C/O BJ'S WHOLESALE CLUB, INC., 350 CAMPUS DRIVE, MARLBOROUGH MA 01752