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BXC (BlueLinx Holdings) Degree of Operating Leverage : 8.07 (As of Mar. 2025)


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What is BlueLinx Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. BlueLinx Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 8.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BXC's Degree of Operating Leverage is ranked worse than
84.77% of 151 companies
in the Industrial Distribution industry
Industry Median: 1.07 vs BXC: 8.07

BlueLinx Holdings Degree of Operating Leverage Historical Data

The historical data trend for BlueLinx 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.

BlueLinx Holdings Degree of Operating Leverage Chart

BlueLinx Holdings 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 19.32 5.47 -0.13 2.60 2.00

BlueLinx Holdings 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 2.76 3.98 5.38 2.00 8.07

Competitive Comparison of BlueLinx Holdings's Degree of Operating Leverage

For the Industrial Distribution subindustry, BlueLinx 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.


BlueLinx Holdings's Degree of Operating Leverage Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, BlueLinx Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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BlueLinx Holdings Degree of Operating Leverage Calculation

BlueLinx Holdings'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
=( 70.094 (Mar. 2025) / 106.254 (Mar. 2024) - 1 )/( 2935.514 (Mar. 2025) / 3064.721 (Mar. 2024) - 1 )
=-0.3403/-0.0422
=8.07***

* 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.


BlueLinx Holdings  (NYSE:BXC) 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.


BlueLinx Holdings Degree of Operating Leverage Related Terms

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


BlueLinx Holdings Business Description

Traded in Other Exchanges
Address
1950 Spectrum Circle, Suite 300, Marietta, GA, USA, 30067
BlueLinx Holdings Inc is engaged in the wholesale distribution of residential and commercial building products. Its business products are split into two categories: Structural products include items such as lumber, plywood, oriented strand board, rebar, and remesh and Specialty products include items such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products. The company's operations are carried out throughout the United States.
Executives
Mitchell B Lewis director, officer: President And CEO 4300 WILDWOOD PARKWAY, ATLANTA GA 30339
Kimberly Ann Debrock officer: VP & CHIEF ACCOUNTING OFFICER 3460 PRESTON RIDGE ROAD, SUITE 600, ALPHARETTA GA 30005
Wamser R Andrew Jr officer: SVP & CHIEF FINANCIAL OFFICER C/O SCHWEITZER-MAUDUIT INTERNATIONAL, 100 NORTH POINT PARKWAY, SUITE 600, ALPHARETTA GA 30022
Anuj Dhanda director ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Keith Haas director 1950 SPECTRUM CIRCLE, SUITE 300, MARIETTA GA 30067
Marietta Edmunds Zakas director 1200 ABERNATHY RD, SUITE 1200, ATLANTA GA 30328
Michael Wilson officer: SENIOR VICE PRESIDENT 1950 SPECTRUM CIRCLE, SUITE 300, MARIETTA GA 30067
Gibson Dwight Audley Konrad director, officer: President and CEO C/O SPX FLOW, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Carol B Yancey director 2999 CIRCLE 75 PKWY, ATLANTA GA 30339
Adam Bowen officer: VP & CHIEF ACCOUNTING OFFICER 1950 SPECTRUM CIRCLE, SUITE 300, MARIETTA GA 30067
Kevin A Henry officer: CHIEF PEOPLE OFFICER 13024 BALLANTYNE CORPORATE PLACE, HARRIS BUILDING, SUITE 900, CHARLOTTE NC 28277
Dominic Dinapoli director 500 EAST PRATT STREET, SUITE 1400, BALTIMORE MD 21202
Sean Dwyer officer: See Remarks 1950 SPECTRUM CIRCLE, SUITE 300, MARIETTA GA 30067
Kim S Fennebresque director BLUELINX HOLDINGS INC, 4300 WILDWOOD PARKWAY, ATLANTA GA 30339
Shyam K. Reddy officer: Chief Administrative Officer 4300 WILDWOOD PARKWAY, ATLANTA GA 30339