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LEG (Leggett & Platt) Degree of Operating Leverage : -43.05 (As of Mar. 2025)


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What is Leggett & Platt Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Leggett & Platt's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -43.05. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LEG's Degree of Operating Leverage is ranked better than
93.36% of 422 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.215 vs LEG: -43.05

Leggett & Platt Degree of Operating Leverage Historical Data

The historical data trend for Leggett & Platt'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.

Leggett & Platt Degree of Operating Leverage Chart

Leggett & Platt 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 1.70 2.47 -12.52 14.34 -55.04

Leggett & Platt 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 14.70 37.14 42.83 -55.04 -43.05

Competitive Comparison of Leggett & Platt's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Leggett & Platt'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.


Leggett & Platt's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Leggett & Platt's Degree of Operating Leverage distribution charts can be found below:

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


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Leggett & Platt Degree of Operating Leverage Calculation

Leggett & Platt'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
=( -423.4 (Mar. 2025) / -111.4 (Mar. 2024) - 1 )/( 4308.8 (Mar. 2025) / 4608.6 (Mar. 2024) - 1 )
=2.8007/-0.0651
=-43.05***

* 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.


Leggett & Platt  (NYSE:LEG) 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.


Leggett & Platt Degree of Operating Leverage Related Terms

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


Leggett & Platt Business Description

Traded in Other Exchanges
Address
No. 1 Leggett Road, Carthage, MO, USA, 64836
Leggett & Platt Inc designs and produces engineered components and products found in homes and automobiles. It operates its business through three segments namely Bedding Products, Specialized Products, and Furniture, Flooring, and Textile Products. It generates the majority of its revenue from Bedding Products. Serving a broad suite of customers around the world, Leggett & Platt's products include bedding components, automotive seat support, and lumbar systems, specialty bedding foam and private label finished mattresses, components for home furniture, and work furniture, flooring underlayment, adjustable beds, and various other products.
Executives
Benjamin Michael Burns officer: SVP-Business Support Services NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Srikanth Padmanabhan director 500 JACKSON STREET, COLUMBUS IN 47201
Karl G Glassman director, officer: Executive Vice President LEGGETT & PLATT, INCORPORATED, NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Ryan Michael Kleiboeker officer: SVP-Chief Strategic Plan. Off. NO.1 LEGGETT ROAD, CARTHAGE MO 64836
Mark A Blinn director 5215 N. O'CONNOR BLVD., SUITE 2300, IRVING TX 75039
Phoebe A Wood director PO BOX 1080, LOUISVILLE KY 40201
Scott S Douglas officer: SVP-Gen. Counsel and Secretary NO 1 LEGGETT ROAD, CARTHAGE MO 64836
Angela Barbee director NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
J Mitchell Dolloff director, officer: President and COO NO.1 LEGGETT ROAD, CARTHAGE MO 64836
James Tyson Hagale officer: SVP, Pres. - Bedding Products NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Christina Ptasinski officer: SVP - Chief HR Officer NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Steven K Henderson officer: Executive Vice President NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Susan R Mccoy officer: SVP - Investor Relations NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Tammy M Trent officer: SVP - Chief Accounting Officer NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Jeffrey L. Tate officer: Executive Vice President - CFO 2211 H.H. DOW WAY, MIDLAND MI 48674