GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Hertz Global Holdings Inc (NAS:HTZ) » Definitions » Degree of Operating Leverage

HTZ (Hertz Global Holdings) Degree of Operating Leverage : 82.11 (As of Mar. 2025)


View and export this data going back to 2021. Start your Free Trial

What is Hertz Global Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hertz Global Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 82.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HTZ's Degree of Operating Leverage is ranked worse than
96.9% of 1000 companies
in the Business Services industry
Industry Median: 0.99 vs HTZ: 82.11

Hertz Global Holdings Degree of Operating Leverage Historical Data

The historical data trend for Hertz Global Holdings'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.

Hertz Global Holdings Degree of Operating Leverage Chart

Hertz Global Holdings 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 5.99 -4.55 7.67 -7.74 90.54

Hertz Global Holdings 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 -14.73 -31.32 762.69 90.54 82.11

Competitive Comparison of Hertz Global Holdings's Degree of Operating Leverage

For the Rental & Leasing Services subindustry, Hertz Global Holdings'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.


Hertz Global Holdings's Degree of Operating Leverage Distribution in the Business Services Industry

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

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


;
;

Hertz Global Holdings Degree of Operating Leverage Calculation

Hertz Global Holdings'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
=( -2171 (Mar. 2025) / 490 (Mar. 2024) - 1 )/( 8782 (Mar. 2025) / 9404 (Mar. 2024) - 1 )
=-5.4306/-0.0661
=82.11***

* 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.


Hertz Global Holdings  (NAS:HTZ) 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.


Hertz Global Holdings Degree of Operating Leverage Related Terms

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


Hertz Global Holdings Business Description

Traded in Other Exchanges
Address
8501 Williams Road, 3rd Floor, Estero, FL, USA, 33928
Hertz Global Holdings Inc is engaged principally in the business of renting vehicles through Hertz, Dollar and Thrifty brands. The Company has identified two reportable segments: Americas RAC: Rental of vehicles, as well as sales of vehicles and value-added services, in the U.S., Canada, Latin America and the Caribbean; International RAC: Rental of vehicles, as well as sales of vehicles and value-added services, in locations other than the U.S., Canada, Latin America and the Caribbean. The Company maintain a substantial network of company-operated rental locations, a majority of which are in Europe, and have franchisees and partners that operate rental locations under brands. Geographical markets includes U.S., Europe, Pacific Asia, Middle East and Africa, Latin America.
Executives
Eric Leef officer: EVP, Chief HR Officer 8501 WILLIAMS ROAD, ESTERO FL 33928
Mark Fields director FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126
Kelly Galloway officer: SVP, Chief Accounting Officer 8501 WILLIAMS ROAD, ESTERO FL 33928
Jeffrey Nedelman director 8501 WILLIAMS ROAD, ESTERO FL 33928
Fran Bermanzohn director 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
Batcheler Colleen officer: EVP, General Counsel and Secy ONE CONAGRA DRIVE, OMAHA NE 68102
Stephen M Scherr director, officer: Chief Executive Officer C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
Tim Langley-hawthorne officer: EVP, Tech & CIO 8501 WILLIAMS ROAD, ESTERO FL 33928
Evelina Vougessis Machas director 8501 WILLIAMS ROAD, ESTERO FL 33928
Jennifer Feikin director 8501 WILLIAMS ROAD, ESTERO FL 33928
Andrew Shannahan director 8501 WILLIAMS ROAD, ESTERO FL 33928
Christopher Lahoud director APOLLO, 212 ROSECRANS AVE., EL SEGUNDO CA 90245
Ck Amarillo Gp, Llc 10 percent owner C/O KNIGHTHEAD CAPITAL MANAGEMENT, LLC, 280 PARK AVENUE, 22ND FLOOR, NEW YORK NY 10017
Certares Opportunities Llc 10 percent owner 350 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10017
Ck Amarillo Lp 10 percent owner C/O KNIGHTHEAD CAPITAL MANAGEMENT, LLC, 280 PARK AVENUE, 22ND FLOOR, NEW YORK NY 10017