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BLDR (Builders FirstSource) Degree of Operating Leverage : 5.92 (As of Mar. 2025)


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What is Builders FirstSource Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Builders FirstSource's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.92. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BLDR's Degree of Operating Leverage is ranked worse than
82.14% of 1669 companies
in the Construction industry
Industry Median: 0.97 vs BLDR: 5.92

Builders FirstSource Degree of Operating Leverage Historical Data

The historical data trend for Builders FirstSource'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.

Builders FirstSource Degree of Operating Leverage Chart

Builders FirstSource 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 2.20 2.56 4.07 1.71 6.55

Builders FirstSource 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 2.09 2.82 5.88 6.55 5.92

Competitive Comparison of Builders FirstSource's Degree of Operating Leverage

For the Building Products & Equipment subindustry, Builders FirstSource'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.


Builders FirstSource's Degree of Operating Leverage Distribution in the Construction Industry

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

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


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Builders FirstSource Degree of Operating Leverage Calculation

Builders FirstSource'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
=( 1406.093 (Mar. 2025) / 2082.733 (Mar. 2024) - 1 )/( 16166.636 (Mar. 2025) / 17105.368 (Mar. 2024) - 1 )
=-0.3249/-0.0549
=5.92***

* 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.


Builders FirstSource  (NYSE:BLDR) 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.


Builders FirstSource Degree of Operating Leverage Related Terms

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


Builders FirstSource Business Description

Traded in Other Exchanges
Address
6031 Connection Drive, Suite 400, Irving, TX, USA, 75039
Builders FirstSource Inc is a manufacturer and supplier of building materials. The company offers structural and related building products such as factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The products can be designed for each home individually and are installed by Builders FirstSource. The company's construction-related services include professional installation, turn-key framing, and shell construction. Builders FirstSource's customers range from large production builders to small custom homebuilders.
Executives
Dirkson R Charles director 50 MAIN STREET, 4TH FLOOR, WHITE PLAINS NY 10606
Paul S Levy director, 10 percent owner JOSEPH LITTLEJOHN & LEVY, 450 LEXINGTON AVE STE 3350, NEW YORK NY 10036
David E Rush officer: SVP - COO - East 2001 BRYAN ST., SUITE 1600, DALLAS TX 75201
Cleveland A Christophe director C/O TSG CAPITAL GROUP, 177 BROAD STREET 12 TH FLOOR, STAMFORD CT 06091
Craig Arthur Steinke director 19 NORFIELD ROAD, WESTON CT 06883
Michael Hiller officer: President - Central Division 2001 BRYAN ST STE 1600, DALLAS TX 75201
Paul M Mccrobie officer: President - East Division 2001 BRYAN STREET, SUITE 1600, DALLAS TX 75201
Boydston Cory Jacobs director C/O BMC STOCK HOLDINGS, INC., 4800 FALLS OF NEUSE RD, SUITE 400, RALEIGH NC 27617
Michael Alan Farmer officer: President - Commercial Ops C/O BMC STOCK HOLDINGS, INC., 4800 FALLS OF NEUSE RD, SUITE 400, RALEIGH NC 27609
Timothy D Johnson officer: EVP & General Counsel 5020 WESTON PARKWAY, SUITE 400, CARY NC 27513
Jami Lynn Coulter officer: Principal Accounting Officer 2001 BRYAN ST., SUITE 1600, DALLAS TX 75201
Floyd F Sherman director, officer: President & CEO BUILDERS FIRSTSOURCE INC., 2001 BRYAN STREET, SUITE 1600, DALLAS TX 75201
Amy B Messersmith officer: Chief People Officer 2001 BRYAN ST STE 1600, DALLAS TX 75201
James Oleary director
David W Bullock director C/O GRAHAM PACKAGING HOLDINGS COMPANY, 2401 PLEASANT VALLEY ROAD, YORK PA 17402