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DFH (Dream Finders Homes) Degree of Operating Leverage : 0.20 (As of Mar. 2025)


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What is Dream Finders Homes Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Dream Finders Homes's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.20. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DFH's Degree of Operating Leverage is ranked better than
66.67% of 93 companies
in the Homebuilding & Construction industry
Industry Median: 1.13 vs DFH: 0.20

Dream Finders Homes Degree of Operating Leverage Historical Data

The historical data trend for Dream Finders Homes'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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Dream Finders Homes Degree of Operating Leverage Chart

Dream Finders Homes Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 1.71 1.24 1.62 1.86 0.06

Dream Finders Homes 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 1.80 1.37 0.18 0.06 0.20

Competitive Comparison of Dream Finders Homes's Degree of Operating Leverage

For the Residential Construction subindustry, Dream Finders Homes'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.


Dream Finders Homes's Degree of Operating Leverage Distribution in the Homebuilding & Construction Industry

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

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


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Dream Finders Homes Degree of Operating Leverage Calculation

Dream Finders Homes'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
=( 442.24 (Mar. 2025) / 424.03 (Mar. 2024) - 1 )/( 4613.239 (Mar. 2025) / 3806.966 (Mar. 2024) - 1 )
=0.0429/0.2118
=0.20***

* 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.


Dream Finders Homes  (NYSE:DFH) 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.


Dream Finders Homes Degree of Operating Leverage Related Terms

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


Dream Finders Homes Business Description

Traded in Other Exchanges
N/A
Address
14701 Philips Highway, Suite 300, Jacksonville, FL, USA, 32256
Dream Finders Homes Inc is engaged in the home building business. The company's primary focus is on constructing and selling single-family homes across entry-level, first-time move-up, second-time move-up, and active adult markets. Its homebuilding operations are organized into four reportable segments: Southeast, Mid-Atlantic, Midwest, and Financial Services. It generates the majority of its revenue from the Midwest segment.
Executives
Lovett William Radford Ii director C/O EVERBANK FINANCIAL CORP, 501 RIVERSIDE AVENUE, JACKSONVILLE FL 32202
Lorena Anabel Fernandez officer: CFO 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Patrick O. Zalupski director, officer: President and CEO 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Justin Udelhofen director 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Len Sturm director 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Doug Moran officer: Senior VP and COO 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Walton William H Iii director ONE INDEPENDENT DRIVE, SUITE 1600, JACKSONVILLE FL 32202
William Weatherford director 19701 BETHEL CHURCH ROAD #302, CORNELIUS NC 28031
Robert E. Riva officer: VP, GC and Corporate Secretary 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Boston Omaha Corp 10 percent owner 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Boc Dfh, Llc 10 percent owner 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
United Casualty & Surety Insurance Co. other: SUBSID of Boston Omaha Corp 292 NEWBURY STREET, BOX 105, BOSTON MA 02115
John O. Blanton officer: VP and CAO 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Rick A. Moyer officer: Senior VP and CFO 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256
Megha H. Parekh director 14701 PHILIPS HIGHWAY, SUITE 300, JACKSONVILLE FL 32256