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ESRT (Empire State Realty Trust) Degree of Operating Leverage : 5.02 (As of Mar. 2025)


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What is Empire State Realty Trust Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Empire State Realty Trust's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.02. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ESRT's Degree of Operating Leverage is ranked worse than
74.66% of 734 companies
in the REITs industry
Industry Median: 1.205 vs ESRT: 5.02

Empire State Realty Trust Degree of Operating Leverage Historical Data

The historical data trend for Empire State 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.

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Empire State Realty Trust Degree of Operating Leverage Chart

Empire State Realty 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 3.82 13.36 6.57 7.92 0.57

Empire State 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 -1.05 -0.54 -0.81 0.57 5.02

Competitive Comparison of Empire State Realty Trust's Degree of Operating Leverage

For the REIT - Diversified subindustry, Empire State 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.


Empire State Realty Trust's Degree of Operating Leverage Distribution in the REITs Industry

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

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


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Empire State Realty Trust Degree of Operating Leverage Calculation

Empire State 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
=( 200.813 (Mar. 2025) / 187.515 (Mar. 2024) - 1 )/( 766.81 (Mar. 2025) / 756.129 (Mar. 2024) - 1 )
=0.0709/0.0141
=5.02***

* 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.


Empire State Realty Trust  (NYSE:ESRT) 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.


Empire State Realty Trust Degree of Operating Leverage Related Terms

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


Empire State Realty Trust Business Description

Traded in Other Exchanges
Address
111 West 33rd Street, 12th Floor, New York, NY, USA, 10120
Empire State Realty Trust operates as a pure-play greater New York and Manhattan-focused REIT, featuring its landmark Empire State Building office and observation deck. The company owns and operates around 8.5 million square feet of office space, about 80% of which is located in Manhattan.
Executives
Thomas P. Durels director, officer: EVP, Dir. of Leasing & Op. C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, 12TH FLOOR, NEW YORK NY 10120
Hannah Y Yang director C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, 12TH FLOOR, NEW YORK NY 10120
Tassell Christina Van director C/O 111 RIVER STREET, HOBOKEN NJ 07030
Stephen Horn officer: Chief Accounting Officer 255 WEST 94TH STREET, NEW YORK NY 10025
Grant Hill director 121 ORANGE AVE, SUITE 1500, ORLANDO FL 32801
Robert Paige Hood director C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, 12TH FLOOR, NEW YORK NY 10120
Christina Chiu officer: EVP and CFO C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, 12TH FLOOR, NEW YORK NY 10120
Patricia Han director 600 OFFICE CENTER DRIVE, FORT WASHINGTON PA 19034
David A Karp director, officer: EVP and CFO C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, NEW YORK NY 10120
Quark Holding Llc 10 percent owner P.O. BOX 23224 OOREDOO TOWER, DIPLOMATIC AREA STREET, WEST BAY, DOHA S3 S3
Thomas J Derosa director C/O WELLTOWER INC., 4500 DORR STREET, TOLEDO OH 43615
Salvatore Michael Giliberto director C/O EMPIRE STATE REALTY TRUST, INC., 111 WEST 33RD STREET, 12TH FLOOR, NEW YORK NY 10120
Steven J Gilbert director 540 MADISON AVE, 40TH FL, NEW YORK NY 10022
Robinson James D Iv director 130 EAST 59TH STREET, NEW YORK NY 10022
William H Berkman director 650 MADISON AVE, 25TH FL, NEW YORK NY 10022