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BSET (Bassett Furniture Industries) Degree of Operating Leverage : -2.26 (As of Feb. 2025)


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What is Bassett Furniture Industries Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Bassett Furniture Industries's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was -2.26. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Bassett Furniture Industries's Degree of Operating Leverage or its related term are showing as below:

BSET's Degree of Operating Leverage is ranked better than
77.93% of 426 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.375 vs BSET: -2.26

Bassett Furniture Industries Degree of Operating Leverage Historical Data

The historical data trend for Bassett Furniture Industries'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.

Bassett Furniture Industries Degree of Operating Leverage Chart

Bassett Furniture Industries Annual Data
Trend Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -37.10 -8.21 3.91 5.45 -31.20

Bassett Furniture Industries Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 5.57 7.38 12.12 -31.20 -2.26

Competitive Comparison of Bassett Furniture Industries's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Bassett Furniture Industries'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.


Bassett Furniture Industries's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Bassett Furniture Industries's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Bassett Furniture Industries's Degree of Operating Leverage falls into.


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Bassett Furniture Industries Degree of Operating Leverage Calculation

Bassett Furniture Industries's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -9.528 (Feb. 2025) / -7.525 (Feb. 2024) - 1 )/( 325.531 (Feb. 2025) / 368.992 (Feb. 2024) - 1 )
=0.2662/-0.1178
=-2.26***

* 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.


Bassett Furniture Industries  (NAS:BSET) 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.


Bassett Furniture Industries Degree of Operating Leverage Related Terms

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


Bassett Furniture Industries Business Description

Traded in Other Exchanges
N/A
Address
3525 Fairystone Park Highway, P.O. Box 626, Bassett, VA, USA, 24055
Bassett Furniture Industries Inc is a manufacturer, marketer, and retailer of home furnishings products in the United States. It operates through the following segments: The Wholesale segment focuses on the design, manufacture, sourcing, sale, and distribution of furniture products, the Retail segment which consists of company-owned stores, and the Corporate and others segment. Majority of revenue is from Wholesale sales of furniture and accessories.
Executives
Spilman Robert H Jr director, officer: Pres & Chief Executive Officer C/O BASSETT FURNITURE INDUSTRIES INC, PO BOX 626, BASSETT VA 24055
John R Belk director BELK INC, 2801 WEST TYVOLA ROAD, CHARLOTTE NC 28217-4500
John Michael Daniel officer: V P, Chief Accounting Officer P O BOX 626, 3525 FAIRYSTONE PARK HWY, BASSETT VA 24055
John Walter Mcdowell director 2826 LAZY LANE, WINSTON SALEM NC 27106
Warden William C Jr director PO BOX 2328, HICKORY NC 28603-2328
David C Baker officer: SVP, Corporate Retail 1012 SHERATON, COURT, MARTINSVILLE VA 24112
Emma S. Battle director 101 NORTH CHERRY STREET, SUITE 501, WINSTON SALEM NC 27101
Virginia W. Hamlet director P.O. BOX 626, BASSETT VA 24055
Wampler William C Jr director 510 CUMBERLAND STREET, BRISTOL VA 24201-4387
Bassett John E Iii officer: vice President Global Sourcing C/O BASSETT FURNITURE INDUSTRIES INC, PO BOX 626, BASSETT VA 24055
Stefanie Jane Lucas officer: SVP, Chief Merchandising Offic P.O. BOX 626, BASSETT VA 24055
Kara Ann Kelchner-strong officer: SVP, Customer Experience Offic P.O. BOX 626, BASSETT VA 24055
Mark S Jordan officer: Vice President Upholstery BASSETT FURNITURE INDUSTRIES INC, PO BOX 626, BASSETT VA 24055
Jay R Hervey officer: Vice Pres Sec & Gen Counsel
Bruce Cohenour officer: SR VP/SALES & MERCHANDISING HOOKER FURNITURE CORPORATION, 440 EAST COMMONWEALTH BLVD, MARTINSVILLE VA 24112