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AutoNation (FRA:RWI) Degree of Operating Leverage : 66.24 (As of Mar. 2025)


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What is AutoNation Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. AutoNation's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 66.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRA:RWI's Degree of Operating Leverage is ranked worse than
96.51% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1.02 vs FRA:RWI: 66.24

AutoNation Degree of Operating Leverage Historical Data

The historical data trend for AutoNation'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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AutoNation Degree of Operating Leverage Chart

AutoNation 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 3.95 6.44 1.03 117.78 28.99

AutoNation 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 -11.72 233.82 10.29 28.99 66.24

Competitive Comparison of AutoNation's Degree of Operating Leverage

For the Auto & Truck Dealerships subindustry, AutoNation'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.


AutoNation's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, AutoNation's Degree of Operating Leverage distribution charts can be found below:

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


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AutoNation Degree of Operating Leverage Calculation

AutoNation'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
=( 1247.698 (Mar. 2025) / 1481.874 (Mar. 2024) - 1 )/( 25031.594 (Mar. 2025) / 24990.572 (Mar. 2024) - 1 )
=-0.158/0.0016
=-96.27***

* 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.


AutoNation  (FRA:RWI) 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.


AutoNation Degree of Operating Leverage Related Terms

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


AutoNation Business Description

Traded in Other Exchanges
Address
200 South West 1st Avenue, Fort Lauderdale, FL, USA, 33301
AutoNation is the second-largest automotive dealer in the United States, with 2024 revenue of about $27 billion and over 240 dealerships, plus 52 collision centers. The firm also has 26 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors across 20 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) divested its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.

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