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FCN (FTI Consulting) Degree of Operating Leverage : -10.80 (As of Mar. 2025)


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What is FTI Consulting Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. FTI Consulting's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -10.80. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FCN's Degree of Operating Leverage is ranked better than
88.9% of 1000 companies
in the Business Services industry
Industry Median: 0.99 vs FCN: -10.80

FTI Consulting Degree of Operating Leverage Historical Data

The historical data trend for FTI Consulting'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.

FTI Consulting Degree of Operating Leverage Chart

FTI Consulting 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 -1.55 0.92 -0.38 1.42 -0.71

FTI Consulting 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 2.39 2.34 1.83 -0.71 -10.80

Competitive Comparison of FTI Consulting's Degree of Operating Leverage

For the Consulting Services subindustry, FTI Consulting'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.


FTI Consulting's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, FTI Consulting's Degree of Operating Leverage distribution charts can be found below:

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


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FTI Consulting Degree of Operating Leverage Calculation

FTI Consulting'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
=( 338.966 (Mar. 2025) / 409.032 (Mar. 2024) - 1 )/( 3668.381 (Mar. 2025) / 3611.089 (Mar. 2024) - 1 )
=-0.1713/0.0159
=-10.80***

* 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.


FTI Consulting  (NYSE:FCN) 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.


FTI Consulting Degree of Operating Leverage Related Terms

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


FTI Consulting Business Description

Traded in Other Exchanges
Address
555 12th Street NW, Suite 700, Washington, DC, USA, 20004
FTI Consulting Inc is a firm that generates its sales by providing professional business advisory services to customers. The company operates through five segments, namely corporate finance, forensic and litigation consulting, economic consulting, technology, and strategic communications. The company generates the majority of its revenue from the Corporate finance segment. Customers of the company come from a wide array of sectors, including construction, energy and power, environmental, financial institutions, healthcare and life science, insurance, real estate and infrastructure, retail and consumer products, telecom, media, and technology. The majority of the company's revenue is derived from serving customers in the United States.
Executives
Gerard E Holthaus director 3129 BLENDON ROAD, OWINGS MILLS MD 21117
Holly Paul officer: Chief Human Resources Officer 6016 KINGSFORD ROAD, BETHESDA MD 20817
Mark S. Bartlett director 4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214
Ajay Sabherwal officer: Chief Financial Officer C/O FAIRPOINT COMMUNICATIONS, INC., 521 E. MOREHEAD STREET, SUITE 500, CHARLOTTE NC 28202
Paul Alderman Linton officer: Chief Strategy/Transf. Officer 5915 SONOMA ROAD, BETHESDA MD 20817
Steven Henry Gunby director, officer: President & CEO 9508 HEMSWELL PLACE, POTOMAC MD 20854
Claudio Costamagna director VIA SEBETO 4, MILANO L6 20123
Curtis P Lu officer: General Counsel 1203 STONNELL PLACE, ALEXANDRIA VA 22302
Laureen Seeger director C/O MCKESSON CORPORATION, ONE POST STREET - 33RD FLOOR, SAN FRANCISCO CA 94104
Brenda J Bacon director 909 COMMERCE ROAD, ANNAPOLIS MD 21403
Elsy Lisa Boglioli director 555 12TH STREET NW, WASHINGTON DC 20004
Vernon James Ellis director 49 QUEENS GATE TERRACE, LONDON X0 SW7 5PN
Nicole S Jones director 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL18Y, PHILADELPHIA PA 19192
Stephen C Robinson director 11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Nicholas C Fanandakis director 1007 MARKET STREET, WILMINGTON DE 19898