GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Churchill Downs Inc (NAS:CHDN) » Definitions » Degree of Operating Leverage

CHDN (Churchill Downs) Degree of Operating Leverage : 1.52 (As of Mar. 2025)


View and export this data going back to 1993. Start your Free Trial

What is Churchill Downs Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Churchill Downs's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.52. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CHDN's Degree of Operating Leverage is ranked worse than
54.7% of 808 companies
in the Travel & Leisure industry
Industry Median: 1.21 vs CHDN: 1.52

Churchill Downs Degree of Operating Leverage Historical Data

The historical data trend for Churchill Downs'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.

Churchill Downs Degree of Operating Leverage Chart

Churchill Downs 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 3.24 7.50 5.75 0.27 0.36

Churchill Downs 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 -0.96 0.98 1.13 0.36 1.52

Competitive Comparison of Churchill Downs's Degree of Operating Leverage

For the Gambling subindustry, Churchill Downs'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.


Churchill Downs's Degree of Operating Leverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Churchill Downs's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Churchill Downs Degree of Operating Leverage Calculation

Churchill Downs'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
=( 859 (Mar. 2025) / 728.8 (Mar. 2024) - 1 )/( 2786 (Mar. 2025) / 2493.1 (Mar. 2024) - 1 )
=0.1786/0.1175
=1.52***

* 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.


Churchill Downs  (NAS:CHDN) 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.


Churchill Downs Degree of Operating Leverage Related Terms

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


Churchill Downs Business Description

Traded in Other Exchanges
Address
600 North Hurstbourne Parkway, Suite 400, Louisville, KY, USA, 40222
Churchill Downs Inc is a gaming entertainment, online wagering, and racing company. It operates through three business segments: Live and Historical Racing, Wagering Services, and Gaming. The Live and Historical Racing segment includes live and historical pari-mutuel racing. The Wagering Services segment includes the revenue and expenses from pari-mutuel wagers through TwinSpires, companies retail and online sports betting business and Gaming segment includes revenue and expenses for the casino properties and associated racetracks that support the casino license. The Gaming segment generates revenue and expenses from slot machines, video lottery terminals, video poker, HRMs, ancillary food and beverage services, hotel services, commission on pari-mutuel wagering, and racing events.
Executives
Douglas C Grissom director THREE FIRST NATIONAL PLAZA STE 3800, CHICAGO IL 60602
R Alex Rankin director 700 CENTRAL AVENUE, LOUISVILLE KY 40208
Paul C Varga director 850 DIXIE HIGHWAY, LOUISVILLE KY 40210
Maureen Adams officer: SVP, Gaming Operations 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVLLE KY 40222
Bradley K. Blackwell officer: SVP, General Counsel 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVILLE KY 40222
Andrea M Carter director 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVILLE KY 40222
Karole Lloyd director 1932 WYNNTON ROAD, COLUMBUS GA 31999
Robert L Fealy director 700 CENTRAL AVE, LOUISVILLE KY 40208
Bridgeman Ulysses L Jr director 7 SYLVAN WAY, PARSIPPANY NJ 07054
Marcia A Dall officer: EVP, and Chief Financial Offic 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVILLE KY 40222
William E Mudd officer: President and COO 700 CENTRAL AVENUE, LOUISVILLE KY 40208
Austin W. Miller officer: SVP, Gaming Operations 600 N. HURSTBOURNE PARKWAY, SUITE 400, LOUISVILLE KY 40222
Daniel P Harrington director 700 CENTRAL AVE, LOUISVILLE KY 40208
Richard L Duchossois director, 10 percent owner
Robert L Evans director, officer: President and CEO TENLANE FARM, 825 STEELE ROAD, VESAILLES KY 40383