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COMP (Compass) Degree of Operating Leverage : -3.39 (As of Dec. 2024)


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What is Compass Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Compass's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -3.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

COMP's Degree of Operating Leverage is ranked better than
80.78% of 1712 companies
in the Real Estate industry
Industry Median: 0.79 vs COMP: -3.39

Compass Degree of Operating Leverage Historical Data

The historical data trend for Compass'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.

Compass Degree of Operating Leverage Chart

Compass Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.54 1.13 -3.03 2.54 -3.39

Compass Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 2.54 4.36 -19.87 -5.37 -3.39

Competitive Comparison of Compass's Degree of Operating Leverage

For the Real Estate Services subindustry, Compass'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.


Compass's Degree of Operating Leverage Distribution in the Real Estate Industry

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

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


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Compass Degree of Operating Leverage Calculation

Compass's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -148 (Dec. 2024) / -306.4 (Dec. 2023) - 1 )/( 5629.1 (Dec. 2024) / 4885 (Dec. 2023) - 1 )
=-0.517/0.1523
=-3.39***

* 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.


Compass  (NYSE:COMP) 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.


Compass Degree of Operating Leverage Related Terms

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


Compass Business Description

Industry
Traded in Other Exchanges
Address
110 Fifth Avenue,, 4th Floor, New York, NY, USA, 10011
Compass Inc provides an end-to-end platform that empowers residential real estate agents to deliver exceptional service to seller and buyer clients. The platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service and other critical functionality, all custom-built for the real estate industry and enabling core brokerage services. Business operations are conducted in the United States and earn revenue domestically.
Executives
Svf Excaliber (cayman) Ltd 10 percent owner 27 HOSPITAL ROAD, WALKERS CORPORATE LTD., CAYMAN CORPORATE CENTRE, GEORGE TOWN, GRAND CAYMAN E9 KY-9008
Robert L. Reffkin director, officer: Chairman and CEO C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Bradley K Serwin officer: Gen Counsel and Secretary 3355 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Scott R. Wahlers officer: Chief Accounting Officer 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Pamela Thomas-graham director C/O IDENIX PHARMACEUTICALS, INC., 60 HAMPSHIRE STREET, CAMBRIDGE MA 02139
Allan Leinwand director C/O MARIN SOFTWARE INCORPORATED, 123 MISSION STREET, 25TH FLOOR, SAN FRANCISCO CA 94105
Gregory M. Hart officer: Chief Product Officer C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Danielle J. Wilkie officer: President, Central Region C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Kalani Reelitz officer: Chief Financial Officer 90 50TH AVENUE, NEW YORK NY 10011
Joseph Sirosh officer: Chief Technology Officer C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Dawanna Williams director 865 MERRICK AVE, SUITE 200 S, WESTBURY NY 11590
Frank Martell director 10 GASTON FARMS ROAD, GREENWICH CT 06831
Josh N. Mccarter director C/O COMPASS, INC., 90 5TH AVENUE, 3RD FLOOR, NYC NY 10011
Robert S. Lehman officer: Chief Business Officer C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Priyanka Singh officer: Chief People Officer C/O COMPASS, INC., 90 5TH AVENUE, 3RD FLOOR, NEW YORK NY 10011