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HQI (HireQuest) Degree of Operating Leverage : 5.67 (As of Mar. 2025)


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What is HireQuest Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. HireQuest's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HQI's Degree of Operating Leverage is ranked worse than
80.9% of 1000 companies
in the Business Services industry
Industry Median: 0.985 vs HQI: 5.67

HireQuest Degree of Operating Leverage Historical Data

The historical data trend for HireQuest'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.

HireQuest Degree of Operating Leverage Chart

HireQuest 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 8.95 1.67 0.34 -1.59 5.16

HireQuest 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 -6.66 -10.74 -256.67 5.16 5.67

Competitive Comparison of HireQuest's Degree of Operating Leverage

For the Staffing & Employment Services subindustry, HireQuest'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.


HireQuest's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, HireQuest's Degree of Operating Leverage distribution charts can be found below:

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


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HireQuest Degree of Operating Leverage Calculation

HireQuest'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
=( 4.542 (Mar. 2025) / 8.037 (Mar. 2024) - 1 )/( 33.651 (Mar. 2025) / 36.444 (Mar. 2024) - 1 )
=-0.4349/-0.0766
=5.67***

* 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.


HireQuest  (NAS:HQI) 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.


HireQuest Degree of Operating Leverage Related Terms

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


HireQuest Business Description

Traded in Other Exchanges
N/A
Address
111 Springhall Drive, Goose Creek, SC, USA, 29445
HireQuest Inc is a nationwide franchisor of offices providing direct-dispatch, executive search, and commercial staffing solutions in the light industrial and blue-collar segments of the staffing industry and traditional commercial staffing. The company's franchisees provide various types of temporary personnel through two business models operating under the trade names HireQuest Direct, HireQuest, Snelling, DriverQuest, HireQuest Health, Northbound Executive Search, and MRI. The company's primary source of revenue is royalty fees based on the operation of its franchised offices.
Executives
Lawrence F Hagenbuch director 600 CORPORATION DRIVE, PENDLETON IN 46064
Jack A. Olmstead director 111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445
Richard Hermanns director, 10 percent owner, officer: President and CEO 111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445
R. Rimmy Malhotra director C/O COMMAND CENTER, INC., 3609 S WADSWORTH BLVD., SUITE 250, LAKEWOOD CO 80235
Kathleen M Shanahan director 24301 WALDEN CENTER DRIVE, BONITA SPRINGS FL 34134
Edward Jackson director, 10 percent owner 111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445
David S. Burnett officer: CFO C/O INTERLINK ELECTRONICS, INC., 31248 OAK CREST DRIVE, SUITE 110, WESTLAKE VILLAGE CA 91361
Richard F & Lisa S Hermanns Dynasty Trust Dated July 16, 2008 10 percent owner 240 S PINEAPPLE AVENUE, 10TH FLOOR, SARASOTA FL 34236
Jd Smith director 13506 SUMMERPORT VILLAGE PARKWAY #160, WINDERMERE FL 34786
John Mcannar officer: Secretary, VP and GC 111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445
Smith Cory officer: CFO and Treasurer 360 S. MONROE STREET, APT. 707, DENVER CO 80209
Payne Brown director 111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445
Brendan Simaytis officer: Executive VP & General Counsel COMMAND CENTER, INC., 3609 S. WADSWORTH BLVD., SUITE 250, LAKEWOOD CO 80235
Steven Mark Bathgate director 5350 S ROSLYN, SUITE 380, ENGLEWOOD CO 80111
Galen G Vetter director 500 EAST GRANT STREET, #2011, MINNEAPOLIS MN 55404