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FSP (Franklin Street Properties) Degree of Operating Leverage : -1.61 (As of Mar. 2025)


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What is Franklin Street Properties Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Franklin Street Properties's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FSP's Degree of Operating Leverage is ranked better than
74.18% of 728 companies
in the REITs industry
Industry Median: 1.215 vs FSP: -1.61

Franklin Street Properties Degree of Operating Leverage Historical Data

The historical data trend for Franklin Street Properties'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.

Franklin Street Properties Degree of Operating Leverage Chart

Franklin Street Properties 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 -6.76 -5.51 3.86 16.43 -0.62

Franklin Street Properties 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 14.99 16.52 3.28 -0.62 -1.61

Competitive Comparison of Franklin Street Properties's Degree of Operating Leverage

For the REIT - Office subindustry, Franklin Street Properties'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.


Franklin Street Properties's Degree of Operating Leverage Distribution in the REITs Industry

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

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


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Franklin Street Properties Degree of Operating Leverage Calculation

Franklin Street Properties'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
=( -41.127 (Mar. 2025) / -32.44 (Mar. 2024) - 1 )/( 115.994 (Mar. 2025) / 139.165 (Mar. 2024) - 1 )
=0.2678/-0.1665
=-1.61***

* 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.


Franklin Street Properties  (AMEX:FSP) 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.


Franklin Street Properties Degree of Operating Leverage Related Terms

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


Franklin Street Properties Business Description

Traded in Other Exchanges
Address
401 Edgewater Place, Suite 200, Wakefield, MA, USA, 01880
Franklin Street Properties Corp is a real estate investment trust. The company is focused on commercial real estate investments in office markets and currently operate in only one segment: real estate operations. The company's operations include rental income from real estate leasing, interest income from secured loans made on office properties, property dispositions, and fee income from asset/property management and development. Franklin Street markets Atlanta, Dallas, Denver, Houston, and Minneapolis.
Executives
Jeffrey B Carter officer: Executive Vice President 401 EDGEWATER PLACE, SUITE 200, WAKEFIELD MA 01880
Brian N Hansen director CONFLUENCE INVESTMENT MANAGEMENT LLC, 20 ALLEN AVENUE, SUITE 300, ST. LOUIS MO 63119
Jonathan Bennett Odle 10 percent owner 3622 ENDEAVOR AVENUE, SUITE 101, COLUMBIA MO 65201
Dennis J Mcgillicuddy director 1221 S. TAMIAMI TRAIL, SARASOTA FL 34239
Wilkins Milton P Jr director 401 EDGEWATER PLACE, STE 200, WAKEFIELD MA 01880
Kenneth A Hoxsie director 401 EDGEWATER PL, STE 200, WAKEFIELD MA 01880
Georgia Murray director 433 SHAWMUT AVE, BOSTON MA 02118
John N Burke director 175 DERBY STREET, SUITE 42, HINGHAM MA 02043
Kathryn P O'neil director 401 EDGEWATER PL, STE 200, WAKEFIELD MA 01880
John G Demeritt officer: Senior Vice President-Finance 401 EDGEWATER PLACE, STE. 200, WAKEFIELD MA 01880
George J Carter director, officer: CEO 401 EDGEWATER PLACE, SUITE 200, WAKEFIELD MA 01880
Eriel Anchondo officer: SVP/Operations 401 EDGEWATER PL, STE. 200, WAKEFIELD MA 01880
John F Donahue officer: Executive Vice President 401 EDGEWATER PL, STE 200, WAKEFIELD MA 01880
Barry Silverstein other: former director 2500 S. OCEAN BLVD., #503, BOCA RATON FL 33432
Barbara J Corinha director, officer: VP, COO, Treasurer & Secretary 401 EDGEWATER PLACE, SUITE 200, WAKEFIELD MA 01880