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HPP (Hudson Pacific Properties) Degree of Operating Leverage : 454.56 (As of Mar. 2025)


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What is Hudson Pacific Properties Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hudson Pacific Properties's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 454.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HPP's Degree of Operating Leverage is ranked worse than
98.5% of 734 companies
in the REITs industry
Industry Median: 1.205 vs HPP: 454.56

Hudson Pacific Properties Degree of Operating Leverage Historical Data

The historical data trend for Hudson Pacific 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.

Hudson Pacific Properties Degree of Operating Leverage Chart

Hudson Pacific 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 12.51 1.96 -0.87 8.80 45.18

Hudson Pacific 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 8.29 8.73 12.86 45.18 454.56

Competitive Comparison of Hudson Pacific Properties's Degree of Operating Leverage

For the REIT - Office subindustry, Hudson Pacific 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.


Hudson Pacific Properties's Degree of Operating Leverage Distribution in the REITs Industry

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

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


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Hudson Pacific Properties Degree of Operating Leverage Calculation

Hudson Pacific 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
=( -234.143 (Mar. 2025) / 5.505 (Mar. 2024) - 1 )/( 826.518 (Mar. 2025) / 914.057 (Mar. 2024) - 1 )
=-43.5328/-0.0958
=454.56***

* 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.


Hudson Pacific Properties  (NYSE:HPP) 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.


Hudson Pacific Properties Degree of Operating Leverage Related Terms

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


Hudson Pacific Properties Business Description

Traded in Other Exchanges
Address
11601 Wilshire Boulevard, Ninth Floor, Los Angeles, CA, USA, 90025
Hudson Pacific Properties Inc is a real estate investment trust that acquires, operates, and owns office buildings and media and entertainment properties, such as sound stages, on America's West Coast. The company focuses on developed, urban markets in Northern California, Southern California, and the Pacific Northwest. In terms of total square footage, the vast majority of Hudson Pacific's real estate portfolio is composed of office properties located in the Greater Seattle, San Francisco, and Los Angeles areas. The company operates in two reportable segments; office properties & related operations; and studio properties & related operations. The majority of revenue is derived from the office properties & related operations segment.
Executives
Victor J Coleman director, officer: Chief Executive Officer HUDSON PACIFIC PROPERTIES INC., 11601 WILSHIRE BLVD SUITE 1600, LOS ANGELES CA 90025
Andy Wattula officer: Chief Operating Officer 11601 WILSHIRE BLVD., 9TH FLOOR, LOS ANGELES CA 90025
Jonathan M Glaser director 11601 WILSHIRE BLVD., SUITE 2180, LOS ANGELES CA 90025
Christopher James Barton officer: EVP,Operations and Development 11601 WILSHIRE BLVD., SUITE 1600, LOS ANGELES CA 90025
Arthur X. Suazo officer: EVP, Leasing 11601 WILSHIRE BOULEVARD, 6TH FLOOR, LOS ANGELES CA 90025
Steven M. Jaffe officer: Chief Risk Officer 11601 WILSHIRE BLVD, SIXTH FLOOR, LOS ANGELES CA 90025
Mark T Lammas officer: Chief Financial Officer 11601 WILSHIRE BLVD., SUITE 1600, LOS ANGELES CA 90025
Harout Krikor Diramerian officer: Chief Accounting Officer C/O HUDSON PACIFIC PROPERTIES, INC., 11601 WILSHIRE BLVD. SUITE 1600, LOS ANGELES CA 90025
Barry A Sholem director 2121 AVENUE OF THE STARS, LOS ANGELES CA 90067
Drew Gordon officer: Chief Investment Officer 11601 WILSHIRE BLVD., 9TH FLOOR, LOS ANGELES CA 90025
Mark David Linehan director 5330 DEBBIE ROAD, SUITE 100, SANTA BARBARA CA 93111
Harris Robert L Ii director C/O ACACIA RESEARCH CORP, 500 NEWPORT CENTER DRIVE, 7TH FLOOR, NEWPORT BEACH CA 92660
Erinn Burnough director LANSDOWNE HOUSE, LANSDOWNE ROAD, FLAT 11, LONDON X0 W11 3LP
Richard B Fried director, 10 percent owner, other: Member of Group Owning 10% C/O FARALLON CAPITAL MANAGEMENT, L.L.C., ONE MARITIME PLAZA, SUITE 2100, SAN FRANCISCO CA 94111
Barry Alan Porter director C/O CLARITY PARTNERS, 100 N. CRESCENT DR, SUITE 300, BEVERLY HILLS CA 90210