GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Essential Properties Realty Trust Inc (NYSE:EPRT) » Definitions » Degree of Operating Leverage

EPRT (Essential Properties Realty Trust) Degree of Operating Leverage : 0.75 (As of Mar. 2025)


View and export this data going back to 2018. Start your Free Trial

What is Essential Properties Realty Trust Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Essential Properties Realty Trust's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EPRT's Degree of Operating Leverage is ranked better than
58.38% of 728 companies
in the REITs industry
Industry Median: 1.215 vs EPRT: 0.75

Essential Properties Realty Trust Degree of Operating Leverage Historical Data

The historical data trend for Essential Properties Realty 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.

* Premium members only.

Essential Properties Realty Trust Degree of Operating Leverage Chart

Essential Properties Realty Trust Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -0.22 1.97 1.45 1.53 0.62

Essential Properties Realty 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 1.10 0.69 0.66 0.62 0.75

Competitive Comparison of Essential Properties Realty Trust's Degree of Operating Leverage

For the REIT - Retail subindustry, Essential Properties Realty 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.


Essential Properties Realty Trust's Degree of Operating Leverage Distribution in the REITs Industry

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

* The bar in red indicates where Essential Properties Realty Trust's Degree of Operating Leverage falls into.


;
;

Essential Properties Realty Trust Degree of Operating Leverage Calculation

Essential Properties Realty 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
=( 300.168 (Mar. 2025) / 252.184 (Mar. 2024) - 1 )/( 475.463 (Mar. 2025) / 379.408 (Mar. 2024) - 1 )
=0.1903/0.2532
=0.75***

* 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.


Essential Properties Realty Trust  (NYSE:EPRT) 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.


Essential Properties Realty Trust Degree of Operating Leverage Related Terms

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


Essential Properties Realty Trust Business Description

Traded in Other Exchanges
Address
902 Carnegie Center Boulevard, Suite 520, Princeton, NJ, USA, 08540
Essential Properties Realty Trust Inc is a real estate investment trust. It is an internally managed real estate company acquires, owns and manages single-tenant properties that are net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses. The Company generally invests in and leases freestanding, single-tenant commercial real estate facilities where a tenant services its customers and conducts activities that are essential to the generation of the tenant's sales and profits.
Executives
Stephen D Sautel director C/O HORIZON ACQUISITION, 600 STEAMBOAT ROAD, SUITE 200, GREENWICH CT 06830
Peter M. Mavoides director, officer: President and CEO 902 CARNEGIE CENTER BLVD., SUITE 520, PRINCETON NJ 08540
Mark E Patten officer: Executive VP and CFO PO BOX 10809, DAYTONA BEACH FL 32120
Timothy J Earnshaw officer: SVP & Chief Accounting Officer 902 CARNEGIE CENTER BLVD., SUITE 520, PRINCETON NJ 08540
Gregg A Seibert officer: Executive VP and COO 902 CARNEGIE CENTER BLVD., SUITE 520, PRINCETON NJ 08540
Lawrence J Minich director 5760 N. CALLE DE LOS CAMARONES, TUSCON AZ 85718
Scott A Estes director WELLTOWER INC., 4500 DORR STREET, TOLEDO OH 43615
Anthony K. Dobkin director 195 BOWERY, 6TH FLOOR, NEW YORK NY 10002
Heather Leed Neary director 973 BUCKWALTER ROAD, LITITZ PA 17543
Paul T Bossidy director 3135 EASTON TURNPIKE, FAIRFIELD CT 06828
Janaki Sivanesan director 575 MADISON AVENUE, NEW YORK NY 10022
Eldridge Industries, Llc 10 percent owner 600 STEAMBOAT ROAD, GREENWICH CT 06830
Todd L Boehly 10 percent owner 600 STEAMBOAT ROAD, GREENWICH CT 06830
Eprt Holdings, Llc 10 percent owner 902 CARNEGIE CENTER BLVD., SUITE 520, PRINCETON NJ 08540
Daniel P Donlan officer: Senior VP - Capital Markets 2021 MCKINNEY AVENUE, SUITE 1150, DALLAS TX 75201