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LINC (Lincoln Educational Services) Degree of Operating Leverage : -3.17 (As of Dec. 2024)


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What is Lincoln Educational Services Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lincoln Educational Services's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -3.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LINC's Degree of Operating Leverage is ranked better than
82.87% of 251 companies
in the Education industry
Industry Median: 0.88 vs LINC: -3.17

Lincoln Educational Services Degree of Operating Leverage Historical Data

The historical data trend for Lincoln Educational 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.

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Lincoln Educational Services Degree of Operating Leverage Chart

Lincoln Educational 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 25.15 16.19 -17.17 13.66 -3.17

Lincoln Educational Services Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 13.66 10.87 -5.08 -3.84 -3.17

Competitive Comparison of Lincoln Educational Services's Degree of Operating Leverage

For the Education & Training Services subindustry, Lincoln Educational 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.


Lincoln Educational Services's Degree of Operating Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Lincoln Educational Services's Degree of Operating Leverage distribution charts can be found below:

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


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Lincoln Educational Services Degree of Operating Leverage Calculation

Lincoln Educational Services's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 17.276 (Dec. 2024) / 35.986 (Dec. 2023) - 1 )/( 440.064 (Dec. 2024) / 378.07 (Dec. 2023) - 1 )
=-0.5199/0.164
=-3.17***

* 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.


Lincoln Educational Services  (NAS:LINC) 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.


Lincoln Educational Services Degree of Operating Leverage Related Terms

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


Lincoln Educational Services Business Description

Traded in Other Exchanges
Address
14 Sylvan Way, Suite A, Parsippany, NJ, USA, 07054
Lincoln Educational Services Corp provides diversified career-oriented post-secondary education to high school graduates and working adults. The company offers programs in automotive technology, skilled trades, healthcare services, hospitality services, and business and information technology. Its reportable segments include; Campus Operations, and Transitional. The majority of the revenue is generated from the Campus Operations segment which includes all campuses that are continuing in operation and contribute to the Company's core operations and performance.
Executives
John A. Bartholdson director, 10 percent owner C/O STONINGTON PARTNERS, INC., 540 MADISON AVENUE, 25TH FLOOR, NEW YORK NY 10022
Juniper Investment Company, Llc 10 percent owner 555 MADISON AVENUE, 24TH FLOOR, NEW YORK NY 10022-3315
Chad D Nyce officer: Chief Innovation Officer C/O LINCOLN EDUCATIONAL SERVICES CORPORA, 200 EXECUTIVE DR., STE 340, WEST ORANGE NJ 07052
Brian K Meyers officer: CFO and Treasurer C/O LINCOLN EDUCATIONAL SERVICES CORPORA, 200 EXECUTIVE DR., STE. 340, WEST ORANGE NJ 07052
Michael A Plater director C/O LINCOLN EDUCATIONAL SERVICES CORP., 200 EXECUTIVE DRIVE, SUITE 340, WEST ORANGE NJ 07052
Burke James J Jr director C/O ANNTAYLOR STORES CORP, 7 TIMES SQUARE, 15TH FLOOR, NEW YORK NY 10036
J Barry Morrow director COLLEGIATE FUNDING SERVICES, 100 RIVERSIDE PARKWAY, FREDERICKSBURG VA 22406
Ronald Edward Harbour director C/O SPARTAN MOTORS INC, 1541 REYNOLDS ROAD, CHARLOTTE MI 48813
Kevin M Carney director 12735 GRAN BAY PARKWAY WEST, BUILDING 200, JACKSONVILLE FL 32258
Scott M Shaw officer: Executive Vice President C/O LINCOLN EDUCATIONAL SERVICES CORP, 200 EXECUTIVE DRIVE, SUITE 340, WEST ORANGE NJ 07052
Sylvia Jean Young director C/O LINCOLN EDUCATIONAL SERVICES CORPORA, 14 SYLVAN WAY, STE. A, PARSIPPANY NJ 07054
Juniper Targeted Opportunity Fund, L.p. 10 percent owner 555 MADISON AVENUE, 24TH FLOOR, NEW YORK NY 10022
Felecia J. Pryor director 3850 W. HAMLIN ROAD, AUBURN HILLS MI 48326
Carlton Rose director C/O LINCOLN EDUCATIONAL SERVICES CORPORA, 200 EXECUTIVE DRIVE, SUITE 340, WEST ORANGE NJ 07052
Stephen M Buchenot officer: Group VP of Operations C/O LINCOLN EDUCATIONAL SERVICES CORP., 200 EXECUTIVE DRIVE, SUITE 340, WEST ORANGE NJ 07052