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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:
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.
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 |
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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 |
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2.09 | 2.82 | 5.88 | 6.55 | 5.92 |
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.
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.
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.
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.
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 |
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