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KELYA (Kelly Services) Degree of Operating Leverage : 48.14 (As of Mar. 2025)


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What is Kelly Services Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Kelly Services's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 48.14. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

KELYA's Degree of Operating Leverage is ranked worse than
95.3% of 1001 companies
in the Business Services industry
Industry Median: 0.99 vs KELYA: 48.14

Kelly Services Degree of Operating Leverage Historical Data

The historical data trend for Kelly Services'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.

Kelly Services Degree of Operating Leverage Chart

Kelly Services 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 11.87 -32.28 -120.49 53.85 13.35

Kelly Services 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 -116.05 -126.42 -7.39 13.35 48.14

Competitive Comparison of Kelly Services's Degree of Operating Leverage

For the Staffing & Employment Services subindustry, Kelly Services'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.


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

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

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


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Kelly Services Degree of Operating Leverage Calculation

Kelly Services'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
=( -30.5 (Mar. 2025) / 44.9 (Mar. 2024) - 1 )/( 4451.6 (Mar. 2025) / 4612.5 (Mar. 2024) - 1 )
=-1.6793/-0.0349
=48.14***

* 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.


Kelly Services  (NAS:KELYA) 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.


Kelly Services Degree of Operating Leverage Related Terms

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


Kelly Services Business Description

Traded in Other Exchanges
Address
999 West Big Beaver Road, Troy, MI, USA, 48084
Kelly Services Inc is a provider of workforce solutions and consulting, and staffing services. The company's operations are divided into four business segments, namely Professional & Industrial, Science, Education, Outsourcing & Consulting Group, and International. Other than OCG, each segment delivers talent through staffing services, permanent placement, or outcome-based services. OCG segment delivers talent solutions, including managed service providers, payroll process outsourcing, recruitment process outsourcing, and talent advisory services. International also delivers RPO talent solutions within its local markets. The majority of revenue is derived from Professional & Industrial.
Executives
Daniel H Malan officer: Senior Vice President 999 WEST BIG BEAVER RD, TROY MI 48084-4716
Timothy L Dupree officer: Senior Vice President 999 WEST BIG BEAVER RD, TROY MI 48084-4716
Olivier Thirot officer: Senior Vice President 999 WEST BIG BEAVER ROAD, TROY MI 48084
Leslie A Murphy director 4811 S CHIPPING GLEN, BLOOMFIELD HILLS MI 48302
Tammy L Browning officer: Senior Vice President 999 WEST BIG BEAVER RD, TROY MI 48084-4716
Donald R Parfet director C/O 350 E MICHIGAN AVENUE STE 500, APJOHN GROUP LLC, KALAMAZOO MI 49007
Darren Simons officer: SVP and Chief Digital Officer 999 W. BIG BEAVER ROAD, TROY MI 48084-4716
Amala Duggirala director PO BOX 10247, BIRMINGHAM AL 35202-0247
Inamarie Johnson director 1019 MARKET STREET, SAN FRANCISCO CA 94103
Terrence B Larkin director 21557 TELEGRAPH ROAD, SOUTHFIELD MI 48033
Jane E Dutton director 701 TAPPAN STREET, ANN ARBOR MI 49101-1234
James H Bradley officer: Senior Vice President 999 WEST BIG BEAVER RD, TROY MI 48084-4716
Vanessa Peterson Williams officer: General Counsel 999 WEST BIG BEAVER ROAD, TROY MI 48084-4716
George S Corona officer: Executive Vice President 2653 TOWER HILL, ROCHESTER HILLS MI 48306
James Polehna officer: VP and Corporate Secretary 999 WEST BIG BEAVER ROAD, TROY MI 48084