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KAR (Openlane) Degree of Operating Leverage : -29.05 (As of Mar. 2025)


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What is Openlane Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Openlane's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -29.05. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

KAR's Degree of Operating Leverage is ranked better than
95.04% of 1290 companies
in the Vehicles & Parts industry
Industry Median: 1 vs KAR: -29.05

Openlane Degree of Operating Leverage Historical Data

The historical data trend for Openlane'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.

Openlane Degree of Operating Leverage Chart

Openlane 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 1.53 12.96 -8.07 -23.32 -35.26

Openlane 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 -27.27 -36.80 -54.03 -35.26 -29.05

Competitive Comparison of Openlane's Degree of Operating Leverage

For the Auto & Truck Dealerships subindustry, Openlane'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.


Openlane's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Openlane's Degree of Operating Leverage distribution charts can be found below:

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


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Openlane Degree of Operating Leverage Calculation

Openlane'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
=( 167.5 (Mar. 2025) / -143.3 (Mar. 2024) - 1 )/( 1832.3 (Mar. 2025) / 1705 (Mar. 2024) - 1 )
=-2.1689/0.0747
=-29.05***

* 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.


Openlane  (NYSE:KAR) 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.


Openlane Degree of Operating Leverage Related Terms

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


Openlane Business Description

Traded in Other Exchanges
Address
11299 North Illinois Street, Suite 500, Carmel, IN, USA, 46032
Openlane Inc provides a digital marketplace for used vehicles, connecting sellers and buyers in North America and Europe for fast and transparent transactions. Its services include financing, repossessions, repairs, transportation, warranty, and inventory management. The company operates used-vehicle auctions and has two main segments: Marketplace and Finance, with majority revenue coming from the Marketplace segment, which to used vehicle remarketing, including marketplace services, remarketing, or make ready services and all are interrelated, synergistic elements along the auto remarketing chain. The Finance segment, through AFC engaged in business of providing short-term, inventory-secured financing to independent vehicle dealers.
Executives
James P Coyle officer: EVP, Chief Digital Officer 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Brad S. Lakhia officer: EVP & CFO 19100 RIDGEWOOD PARKWAY, SAN ANTONIO TX 78259
Money James E. Ii officer: AFC President 13085 HAMILTON CROSSING BLVD., CARMEL IN 46032
Kelly Peter officer: Pres. & CEO, OPENLANE C/O KAR AUCTION SERVICES, INC., 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Michael T. Kestner director 13085 HAMILTON CROSSING BLVD., CARMEL IN 46032
J Mark Howell director C/O ANGIE'S LIST, INC., 1030 EAST WASHINGTON STREET, INDIANAPOLIS IN 46202
James P Hallett officer: CEO
Srisu Subrahmanyam officer: Pres KAR Svcs Group, EVP Ops 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Justin T. Davis officer: President of BacklotCars 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Scott A Anderson officer: Chief Accounting Officer 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Mary Ellen Smith director 11299 NORTH ILLINOIS STREET, CARMEL IN 46032
Ignition Acquisition Holdings Gp Llc 10 percent owner C/O APAX PARTNERS L.P., 601 LEXINGTON AVENUE, NEW YORK NY 10022
Ignition Acquisition Holdings Lp 10 percent owner C/O APAX PARTNERS L.P., 601 LEXINGTON AVENUE, NEW YORK NY 10017
Ignition Gp Llc 10 percent owner C/O APAX PARTNERS L.P., 601 LEXINGTON AVENUE, NEW YORK NY 10022
Ignition Parent Lp 10 percent owner C/O APAX PARTNERS L.P., 601 LEXINGTON AVENUE, NEW YORK NY 10022