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HOFT (Hooker Furnishings) Degree of Operating Leverage : 74.16 (As of Apr. 2025)


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What is Hooker Furnishings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hooker Furnishings's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 74.16. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HOFT's Degree of Operating Leverage is ranked worse than
91% of 422 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.215 vs HOFT: 74.16

Hooker Furnishings Degree of Operating Leverage Historical Data

The historical data trend for Hooker Furnishings'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.

Hooker Furnishings Degree of Operating Leverage Chart

Hooker Furnishings Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.86 -21.03 77.37 13.57 25.21

Hooker Furnishings Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 7.14 6.56 -0.76 25.21 74.16

Competitive Comparison of Hooker Furnishings's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Hooker Furnishings'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.


Hooker Furnishings's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Hooker Furnishings's Degree of Operating Leverage distribution charts can be found below:

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


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Hooker Furnishings Degree of Operating Leverage Calculation

Hooker Furnishings's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -14.045 (Apr. 2025) / 7.438 (Apr. 2024) - 1 )/( 389.209 (Apr. 2025) / 404.982 (Apr. 2024) - 1 )
=-2.8883/-0.0389
=74.16***

* 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.


Hooker Furnishings  (NAS:HOFT) 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.


Hooker Furnishings Degree of Operating Leverage Related Terms

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


Hooker Furnishings Business Description

Traded in Other Exchanges
N/A
Address
440 East Commonwealth Boulevard, Martinsville, VA, USA, 24112
Hooker Furnishings Corp is a designer, marketer and importer of casegoods (wooden and metal furniture), leather furniture, fabric-upholstered furniture, lighting, accessories, and home decor for the residential, hospitality and contract markets. It is also domestically manufactured premium residential custom leather, custom fabric-upholstered furniture, and outdoor furniture. The company operates in four segment Hooker Branded segment, Home Meridian segment, Domestic Upholstery segment and All Other.
Executives
Paulette Garafalo director HOOKER FURNITURE CORPORATION, 440 E. COMMONWEALTH BOULEVARD, MARTINSVILLE VA 24112
Tonya Harris Jackson director HOOKER FURNITURE CORPORATION, 440 E. COMMONWEALTH BOULEVARD, MARTINSVILLE VA 24112
Christopher L Henson director 214 N TRYON STREET, CHARLOTTE NC 28202
Maria C Duey director 440 COMMONWEALTH BLVD E, MARTINSVILLE VA 24112
Anne Jacobsen officer: Senior Vice President HOOKER FURNITURE CORPORATION, 440 E. COMMONWEALTH BLVD., MARTINSVILLE VA 24112
Paul A Huckfeldt officer: Chief Financial Officer HOOKER FURNITURE CORPORATION, 440 E. COMMONWEALTH BLVD, MARTINSVILLE VA 24112
Beeler W Christopher Jr director C/O HOOKER FURNITURE CORP, P O BOX 4708, MARTINSVILLE VA 24115
Tod R Phelps officer: Sr. VP - Operations PO BOX 4708, MARTINSVILLE VA 24115
Toms Paul B Jr director, officer: Chief Executive Officer HOOKER FURNITURE CORP, 440 E COMMONWEALTH BLVD, MARTINSVILLE VA 24112
Donald Lee Boone officer: Co-President HMI HOOKER FURNITURE CORPORATION, 440 E. COMMONWEALTH BOULEVARD, MARTINSVILLE VA 24112
Douglas Townsend officer: Co-President HMI HOOKER FURNITURE CORPORATION, 440 E. COMMONWEALTH BOULEVARDM, MARTINSVILLE VA 24112
Williamson Henry G Jr director HOOKER FURNITURE CORPORATION, POB 4708, MARTINSVILLE VA 24112
E Larry Ryder director C/O HOOKER FURNITURE CORP, P O BOX 4708, MARTINSVILLE VA 24115
Michael W Delgatti officer: President HOOKER FURNITURE CORPORATION, 440 E. COMMONWEALTH BLVD., MARTINSVILLE VA 24112
Jeremy R Hoff officer: President HOOKER FURNITURE CORPORATION, 440 E. COMMONWEALTH BOULEVARD, MARTINSVILLE VA 24112