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BZH (Beazer Homes USA) Degree of Operating Leverage : -2.85 (As of Mar. 2025)


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What is Beazer Homes USA Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Beazer Homes USA's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Beazer Homes USA's Degree of Operating Leverage or its related term are showing as below:

BZH's Degree of Operating Leverage is ranked better than
79.57% of 93 companies
in the Homebuilding & Construction industry
Industry Median: 1.13 vs BZH: -2.85

Beazer Homes USA Degree of Operating Leverage Historical Data

The historical data trend for Beazer Homes USA'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.

Beazer Homes USA Degree of Operating Leverage Chart

Beazer Homes USA Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -99.77 137.76 10.36 7.35 -3.45

Beazer Homes USA 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 3.80 3.78 -3.45 -2.13 -2.85

Competitive Comparison of Beazer Homes USA's Degree of Operating Leverage

For the Residential Construction subindustry, Beazer Homes USA'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.


Beazer Homes USA's Degree of Operating Leverage Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Beazer Homes USA's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Beazer Homes USA's Degree of Operating Leverage falls into.


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Beazer Homes USA Degree of Operating Leverage Calculation

Beazer Homes USA'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
=( 102.277 (Mar. 2025) / 166.215 (Mar. 2024) - 1 )/( 2436.131 (Mar. 2025) / 2146.307 (Mar. 2024) - 1 )
=-0.3847/0.135
=-2.85***

* 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.


Beazer Homes USA  (NYSE:BZH) 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.


Beazer Homes USA Degree of Operating Leverage Related Terms

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


Beazer Homes USA Business Description

Traded in Other Exchanges
Address
2002 Summit Boulevard NE, 15th Floor, Atlanta, GA, USA, 30319
Beazer Homes USA Inc is an construction company that focuses on residential construction. The company specializes in single-family housing and multi-unit building construction in over 13 states and over 22 metro markets. Beazer Homes builds homes and communities that target first-time, move-up, and luxury homebuyers with an average selling price of roughly $300,000. From a geographic perspective, home sales in the western and eastern United States have been the leading sources of revenue for the company. Key metro areas include Atlanta, Las Vegas, Los Angeles, Orlando, and Tampa. The company also focuses on land purchasing and development to support future construction efforts as well as mortgage services for its homebuyers.
Executives
Danny R Shepherd director VULCAN MATERIALS COMPANY, 1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Norma Ann Provencio director 2150 ST. ELZEAR BLVD. WEST, LAVAL A8 H7L 4A8
Lloyd Emerson Johnson director 16737 NEW PROVIDENCE LANE, CHARLOTTE NC 28277
David I Goldberg officer: SVP, Chief Financial Officer 1000 ABERNATHY ROAD, NE, SUITE 260, ATLANTA GA 30328
Allan P Merrill director, officer: President and CEO BEAZER HOMES, 1000 ABERNATHY RD, SUITE 1200, ATLANTA GA 30328
Belknap Keith L Jr officer: EVP, General Counsel 3585 ENGINEERING DRIVE, SUITE 100, NORCROSS GA 30092
Robert L. Salomon officer: EVP, Chief Financial Officer 5535 LEXINGTON WOODS LANE, ALPHARETTA GA 30005
Pei Sun officer: VP & Chief Accounting Officer 1000 ABERNATHY ROAD, SUITE 260, ATLANTA GA 30328
C Christian Winkle director ONE RAVINIA DRIVE, STE 1500, ATLANTA GA 30346
Zelnak Stephen P Jr director MARTIN MARIETTA MATERIALS INC, 2710 WYCLIFF ROAD, RALEIGH NC 27607
David J Spitz director C/O CHANNELADVISOR CORPORATION, 2701 AERIAL CENTER PARKWAY, MORRISVILLE NC 27568
Larry T Solari director
Brian C Beazer director C/O NUMEREX, 1600 PARKWOOD CIRCLE #200, ATLANTA GA 30339-2119
Peter M Orser director 1000 ABERNATHY ROAD, SUITE 260, ATLANTA GA 30328
Peter G Leemputte director CHICAGO TITLE CORP, 171 N CLARK ST, CHICAGO IL 80601