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HVT (Haverty Furniture) Degree of Operating Leverage : 4.84 (As of Mar. 2025)


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What is Haverty Furniture Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Haverty Furniture's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.84. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HVT's Degree of Operating Leverage is ranked worse than
74.93% of 1093 companies
in the Retail - Cyclical industry
Industry Median: 1.28 vs HVT: 4.84

Haverty Furniture Degree of Operating Leverage Historical Data

The historical data trend for Haverty Furniture'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.

Haverty Furniture Degree of Operating Leverage Chart

Haverty Furniture 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 -8.06 5.20 -0.11 2.43 4.36

Haverty Furniture 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 2.38 2.67 3.35 4.36 4.84

Competitive Comparison of Haverty Furniture's Degree of Operating Leverage

For the Home Improvement Retail subindustry, Haverty Furniture'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.


Haverty Furniture's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Haverty Furniture's Degree of Operating Leverage distribution charts can be found below:

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


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Haverty Furniture Degree of Operating Leverage Calculation

Haverty Furniture'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
=( 22.075 (Mar. 2025) / 54.52 (Mar. 2024) - 1 )/( 720.469 (Mar. 2025) / 821.377 (Mar. 2024) - 1 )
=-0.5951/-0.1229
=4.84***

* 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.


Haverty Furniture  (NYSE:HVT) 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.


Haverty Furniture Degree of Operating Leverage Related Terms

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


Haverty Furniture Business Description

Traded in Other Exchanges
Address
780 Johnson Ferry Road, Suite 800, Atlanta, GA, USA, 30342
Haverty Furniture Companies Inc is a specialty retailer of residential furniture and accessories. It provides various products such as Sofa Tables, Sleepers, End Tables, Cocktail Tables, Accent Pieces, Display Cabinets, Wall Decor, floral and Tress, and other related products. The company operates in the Southern and Midwestern U.S. All its activities are encompassed in its Merchandise division. The company derives the majority of its revenue from its upholstery products and, secondarily, from bedroom furniture.
Executives
Steven G Burdette officer: Senior Vice President
John Linwood Gill officer: Vice President, Operations 780 JOHNSON FERRY ROAD, NE, SUITE 800, ATLANTA GA 30157
Rawson Jr Haverty director, officer: Senior Vice President
Vicki R Palmer director PO BOX 723040, ATLANTA GA 30339
Mylle H Mangum director 3231 S E SIXTH AVENUE, TOPEKA KS 66607
Richard B Hare officer: Executive Vice President & CFO CARMIKE CINEMAS INC, 1301 FIRST AVENUE, COLUMBUS GA 31901
Clarence H Smith director, officer: President & CEO 780 JOHNSON FERRY RD., SUITE 800, ATLANTA GA 30342
Jenny H Parker officer: Vice Pres., Secy. & Treas.
Michael R Cote director 1 CONCOURSE PARKWAY, SUITE 500, ATLANTA GA 30328
Kelly Allen Fladger officer: SVP, Chief HR Officer 780 JOHNSON FERRY ROAD, NE, SUITE 800, ATLANTA GA 30342
Alfredo Trujillo director
J Edward Clary officer: Chief Information Officer
Derek Gordon Schiller director 780 JOHNSON FERRY ROAD, NE, SUITE 800, ATLANTA GA 30342
G. Thomas Hough director P.O. BOX 407, LAKELAND FL 33802
Helen Berry Bautista officer: Vice President, Marketing 780 JOHNSON FERRY ROAD, SUITE 800, ATLANTA GA 30342