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CLDT (Chatham Lodging Trust) Degree of Operating Leverage : 22.15 (As of Mar. 2025)


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What is Chatham Lodging Trust Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Chatham Lodging Trust's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 22.15. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Chatham Lodging Trust's Degree of Operating Leverage or its related term are showing as below:

CLDT's Degree of Operating Leverage is ranked worse than
88.28% of 734 companies
in the REITs industry
Industry Median: 1.205 vs CLDT: 22.15

Chatham Lodging Trust Degree of Operating Leverage Historical Data

The historical data trend for Chatham Lodging Trust'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.

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Chatham Lodging Trust Degree of Operating Leverage Chart

Chatham Lodging Trust 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 3.69 -2.66 17.33 -3.95 9.12

Chatham Lodging Trust 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 -20.72 -26.71 -16.18 9.12 22.15

Competitive Comparison of Chatham Lodging Trust's Degree of Operating Leverage

For the REIT - Hotel & Motel subindustry, Chatham Lodging Trust'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.


Chatham Lodging Trust's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Chatham Lodging Trust's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Chatham Lodging Trust's Degree of Operating Leverage falls into.


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Chatham Lodging Trust Degree of Operating Leverage Calculation

Chatham Lodging Trust'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
=( 40.027 (Mar. 2025) / 28.837 (Mar. 2024) - 1 )/( 317.401 (Mar. 2025) / 311.937 (Mar. 2024) - 1 )
=0.388/0.0175
=22.15***

* 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.


Chatham Lodging Trust  (NYSE:CLDT) 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.


Chatham Lodging Trust Degree of Operating Leverage Related Terms

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


Chatham Lodging Trust Business Description

Industry
Traded in Other Exchanges
N/A
Address
222 Lakeview Avenue, Suite 200, West Palm Beach, FL, USA, 33401
Chatham Lodging Trust is a U.S.-based real estate investment trust that invests in upscale extended-stay hotels. The firm operates across various states in the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania among others. Substantially all of the company's assets are held and operated by its Operating Partnership, Chatham Lodging, LP. Chatham Lodging LP and its subsidiaries lease the overall company's hotels. The firm operates through a single segment because of the similar economic characteristics of its hotels. Chatham's revenue streams include Room, Food and beverage, and Other. Room comprises the majority of total revenue. Chatham's hotels operate under brands which include, Hilton, Marriott, and Hyatt.
Executives
Dennis M Craven officer: EVP & Chief Financial Officer 850 RIDGE LAKE BLVD, STE 300, MEMPHIS TN 38120
Ethel Issacs Williams director 222 LAKEVIEW AVE, SUITE 200, WEST PALM BEACH FL 33401
Jeffrey H Fisher director, officer: Chairman, President and CEO 50 COCOANUT ROW, SUITE 200, PALM BEACH FL 33480
David Grissen director 10400 FERNWOOD ROAD, BETHESDA MD 20817
Robert D Perlmutter director THE MACERICH COMPANY, 401 WILSHIRE BLVD., SUITE 700, SANTA MONICA CA 90401
C Gerald Goldsmith director 50 COCOANUT ROW, SUITE 200, PALM BEACH FL 33480
Mary Elizabeth Higgins director 3525 E. POST ROAD #120, LAS VEGAS NV 89120
Peter Willis officer: EVP & Chief Investment Officer 50 COCOANUT ROW, SUITE 200, PALM BEACH FL 33480
Brewer Edwin B Jr director C/O EDUCATION REALTY TRUST, INC., 999 SOUTH SHADY GROVE ROAD, SUITE 600, MEMPHIS TN 38120
Jeremy Bruce Wegner officer: Chief Financial Officer 8000 PORTOFINO CIRCLE, APARTMENT 101, PALM BEACH GARDENS FL 33418
Chatham Lodging Trust officer: Chief Financial Officer 222 LAKEVIEW AVENUE, SUITE 200, WEST PALM BEACH FL 33401
Joel F Zemans director 50 COCOANUT ROW, SUITE 200, PALM BEACH FL 33480
Miles L Berger director
Julio E Morales officer: EVP, Chief Financial Officer 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Thomas J Crocker director 433 PLAZA REAL STE 335, BOCA RATON FL 33432