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KFY (Korn Ferry) Degree of Operating Leverage : -18.37 (As of Jan. 2025)


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What is Korn Ferry Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Korn Ferry's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was -18.37. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

KFY's Degree of Operating Leverage is ranked better than
91.3% of 1000 companies
in the Business Services industry
Industry Median: 0.985 vs KFY: -18.37

Korn Ferry Degree of Operating Leverage Historical Data

The historical data trend for Korn Ferry'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.

Korn Ferry Degree of Operating Leverage Chart

Korn Ferry Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 82.48 -1.44 3.04 -3.58 10.16

Korn Ferry Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 59.19 10.16 1.70 -26.55 -18.37

Competitive Comparison of Korn Ferry's Degree of Operating Leverage

For the Staffing & Employment Services subindustry, Korn Ferry'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.


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

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

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


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Korn Ferry Degree of Operating Leverage Calculation

Korn Ferry's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 361.617 (Jan. 2025) / 226.028 (Jan. 2024) - 1 )/( 2741.182 (Jan. 2025) / 2833.706 (Jan. 2024) - 1 )
=0.5999/-0.0327
=-18.37***

* 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.


Korn Ferry  (NYSE:KFY) 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.


Korn Ferry Degree of Operating Leverage Related Terms

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


Korn Ferry Business Description

Industry
Traded in Other Exchanges
Address
1900 Avenue of the Stars, Suite 1500, Los Angeles, CA, USA, 90067
Korn Ferry is a United States-based firm engaged in organizational consulting and management recruitment that helps clients fill mid- to high-level management positions. The company's segment includes Consulting; Digital; Executive Search; Professional Search & Interim; and RPO. The company generates the majority of its revenue from the Executive Search segment and Consulting segment. The consulting segment aligns organizational structure, culture, performance, development, and people to drive sustainable growth by addressing four fundamental organizational and talent needs. The Executive search segment helps organizations recruit board-level, chief executive, and other C-suite/senior executive and general management talent to deliver lasting impact.
Executives
Mark Arian officer: CEO of Hay Group C/O KORN/FERRY INTERNATIONAL, 1900 AVE. OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
Debra J Perry director 515 RIDGEWOOD AVENUE, GLEN RIDGE NJ 07028
Gary D Burnison director, officer: CEO C/O KORN FERRY INTERNATIONAL, 800 CENTURY PARK EAST STE 900, LOS ANGELES CA 90067
Michael Distefano officer: See Remarks 1900 AVENUE OF THE STARS, SUITE 1500, LOS ANGELES CA 90067
Robert P Rozek officer: EVP and CFO 343 STATE STREET, ROCHESTER NY 146500211
Jerry Leamon director C/O KORN/FERRY INTERNATIONAL, 1900 AVENUE OF THE STARS, SUITE 2600, LOS ANGELES CA 90067
Matthew J Espe director
Jeanne Macdonald officer: CEO RPO 1900 AVENUE OF THE STARS, SUITE 1500, LOS ANGELES CA 90067
Charles L. Harrington director 5875 TRINITY PKWY #300, CENTREVILLE VA 20120
Laura M Bishop director 1900 AVENUE OF THE STARS, SUITE 1500, LOS ANGELES CA 90067
Byrne K Mulrooney officer: CEO of Futurestep 2050 SPECTRUM BOULEVARD, FT. LAUDERDALE FL 33309
George T Shaheen director
Lori Jean Robinson director 5875 LANDERBROOK DRIVE, SUITE 220, CLEVELAND OH 44124
Len J Lauer director 2001 EDMUND HALLEY DRIVE, RESTON VA 20191
Angel R Martinez director C/O TUPPERWARE BRANDS CORP, PO BOX 2353, ORLANDO FL 32802-2353