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LAMR (Lamar Advertising Co) Degree of Operating Leverage : -3.23 (As of Mar. 2025)


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What is Lamar Advertising Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lamar Advertising Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -3.23. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LAMR's Degree of Operating Leverage is ranked better than
77.11% of 734 companies
in the REITs industry
Industry Median: 1.205 vs LAMR: -3.23

Lamar Advertising Co Degree of Operating Leverage Historical Data

The historical data trend for Lamar Advertising Co'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.

Lamar Advertising Co Degree of Operating Leverage Chart

Lamar Advertising Co 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 2.43 2.20 1.16 4.31 -4.58

Lamar Advertising Co 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 4.30 4.09 3.56 -4.58 -3.23

Competitive Comparison of Lamar Advertising Co's Degree of Operating Leverage

For the REIT - Specialty subindustry, Lamar Advertising Co'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.


Lamar Advertising Co's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Lamar Advertising Co's Degree of Operating Leverage distribution charts can be found below:

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


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Lamar Advertising Co Degree of Operating Leverage Calculation

Lamar Advertising Co'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
=( 606.776 (Mar. 2025) / 686.198 (Mar. 2024) - 1 )/( 2214.383 (Mar. 2025) / 2137.805 (Mar. 2024) - 1 )
=-0.1157/0.0358
=-3.23***

* 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.


Lamar Advertising Co  (NAS:LAMR) 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.


Lamar Advertising Co Degree of Operating Leverage Related Terms

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Lamar Advertising Co Business Description

Industry
Traded in Other Exchanges
Address
5321 Corporate Boulevard, Baton Rouge, LA, USA, 70808
Lamar Advertising Co is an outdoor advertising companies in the United States and operates as a Real Estate Investment Trust. It rent space for advertising on billboards, buses, shelters, benches, logo plates and in airport terminals and also offer customers a fully integrated service with all aspects of their display requirements from ad copy production to placement and maintenance. It has two operating segments: billboard and Others. Key revenue is generated from Billboard segment.
Executives
Nancy Fletcher director 5321 CORPORATE BOULEVARD, BATON ROUGE LA 70808
Koerner John E Iii director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Jay Lecoryelle Johnson officer: CFO, Treasurer, EVP C/O DIAMONDROCK HOSPITALITY COMPANY, 2 BETHESDA METRO CENTER, SUITE 1400, BETHESDA MD 20814
Thomas V Reifenheiser director C/O LAMAR CORP, 5551 CORPORATE BLVD, BATON ROUGE LA 70808
Wendell Reilly director C/O BERMAN CAPITAL ADVISORS, 3475 LENOX RD. STE. 760, ATLANTA GA 30326
Anna Reilly director C/O LAMAR ADVERTISING COMPANY, 5321 CORPORATE BLVD, BATON ROUGE LA 70808
Stephen P Mumblow director 790 TOWNSHIP LINE ROAD, YARDLEY PA 19067
Elizabeth Mary Thompson director 5321 CORPORATE BOULEVARD, BATON ROUGE LA 70808
Keith A Istre officer: Chief Financial Officer C/O LAMAR CORP, 5321 CORPORATE BLVD, BATON ROUGE LA 70808
Sean E Reilly officer: Chief Operating Officer 5321 CORPORATE BLVD, BATON ROUGE LA 70808
Marshall A Loeb director C/O EASTGROUP PROPERTIES, INC., 190 EAST CAPITOL STREET, JACKSON MS 39201
John Maxwell Hamilton director C/O LAMAR CORP, 5551 CORPORATE BLVD, BATON ROUGE LA 70808
Reilly Kevin P Jr director, officer: President and CEO C/O LAMAR CORP, 5321 CORPORATE BLVD, BATON ROUGE LA 70808
Spo Advisory Corp 10 percent owner PO BOX 2722, C/O SPO PARTNERS & CO, SAN ANSELMO CA 94979
Abrams Capital Management, L.p. 10 percent owner 222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116