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FTRPR.PFD (Frontier Communications) Degree of Operating Leverage : 0.00 (As of Mar. 2021)


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What is Frontier Communications Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Frontier Communications's Degree of Operating Leverage for the quarter that ended in Mar. 2021 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FTRPR.PFD's Degree of Operating Leverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 1.4
* Ranked among companies with meaningful Degree of Operating Leverage only.

Frontier Communications Degree of Operating Leverage Historical Data

The historical data trend for Frontier Communications'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.

Frontier Communications Degree of Operating Leverage Chart

Frontier Communications Annual Data
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Frontier Communications Quarterly Data
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Competitive Comparison of Frontier Communications's Degree of Operating Leverage

For the Telecom Services subindustry, Frontier Communications'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.


Frontier Communications's Degree of Operating Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Frontier Communications's Degree of Operating Leverage distribution charts can be found below:

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


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Frontier Communications Degree of Operating Leverage Calculation

Frontier Communications's Degree of Operating Leverage for the quarter that ended in Mar. 2021 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 338 (Mar. 2021) / -5123 (Mar. 2020) - 1 )/( 6898 (Mar. 2021) / 7939 (Mar. 2020) - 1 )
=-1.066/-0.1311
=8.13***

* 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.


Frontier Communications  (NAS:FTRPR.PFD) 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.


Frontier Communications Degree of Operating Leverage Related Terms

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


Frontier Communications Business Description

Traded in Other Exchanges
N/A
Address
401 Merritt 7, Norwalk, CT, USA, 06851
Frontier Communications Corp is a provider of communications services for consumer and commercial customers in the United States. The portfolio of its services includes Data and Internet services, Video services, Voice services including both the regulated and unregulated voices, Access services, and Advanced Hardware and Network Solutions.
Executives
Sheldon Bruha officer: Chief Financial Officer 401 MERRITT 7, NORWALK CT 06851
John Maduri officer: EVP, Chief Customer Officer 401 MERRITT 7, NORWALK CT 06851
Steve Gable officer: EVP, Chief Technology Officer FRONTIER COMMUNICATIONS, 401 MERRITT 7, NORWALK CT 06851
Mark D Nielsen officer: EVP and Chief Legal Officer FRONTIER COMMUNICATIONS, 401 MERRITT 7, NORWALK CT 06851
Donald Daniels officer: SVP & Chief Accounting Officer FRONTIER COMMUNICATIONS, 401 MERRITT 7, NORWALK CT 06851
Kenneth Arndt officer: EVP, Chief Operations Officer 401 MERRITT 7, NORWALK CT 06851
Elisa Bannon-jones officer: EVP, Chief HR Officer 401 MERRITT 7, NORWALK CT 06851
Bernard L Han director, officer: President and CEO DISH NETWORK CORPORATION, 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Mohsin Y Meghji director C/O LOUGHLIN MEGHJI + COMPANY, NEW YORK NY 10016
Paul Keglevic director STELLUS CAPITAL, 10000 MEMORIAL DRIVE STE 500, HOUSTON TX 77024
Kevin L Beebe director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
Reeve Pamela D A director C/O AMERICAN TOWER CORPORATION, 116 HUNTINGTON AVE, BOSTON MA 02116
Diana Sue Ferguson director C/O SARA LEE CORP, 70 W MADISO ST, CHICAGO IL 60602
Virginia P Ruesterholz director 140 WEST STREET, NEW YORK NY 10007
Mark S Shapiro director C/O RED ZONE LLC, 21300 REDSKIN PARK DRIVE, ASHBURN VA 20147

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