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MAC (Macerich Co) Degree of Operating Leverage : -25.38 (As of Mar. 2025)


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What is Macerich Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Macerich Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -25.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MAC's Degree of Operating Leverage is ranked better than
89.65% of 734 companies
in the REITs industry
Industry Median: 1.205 vs MAC: -25.38

Macerich Co Degree of Operating Leverage Historical Data

The historical data trend for Macerich 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.

Macerich Co Degree of Operating Leverage Chart

Macerich 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 10.93 -28.77 -28.12 -77.12 -57.47

Macerich 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 -143.72 -24.25 -44.40 -57.47 -25.38

Competitive Comparison of Macerich Co's Degree of Operating Leverage

For the REIT - Retail subindustry, Macerich 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.


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

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

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


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Macerich Co Degree of Operating Leverage Calculation

Macerich 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
=( 293.1 (Mar. 2025) / -220.212 (Mar. 2024) - 1 )/( 958.645 (Mar. 2025) / 877.997 (Mar. 2024) - 1 )
=-2.331/0.0919
=-25.38***

* 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.


Macerich Co  (NYSE:MAC) 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.


Macerich Co Degree of Operating Leverage Related Terms

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


Macerich Co Business Description

Industry
Traded in Other Exchanges
Address
401 Wilshire Boulevard, Suite 700, Santa Monica, CA, USA, 90401
Macerich invests in premium mall assets. The company owns 29 regional malls in its consolidated portfolio and 10 regional malls in its unconsolidated portfolio along with two power centers and seven other real estate assets. The company's total portfolio has 42.1 million square feet of gross leasable area and averaged $837 sales per square foot over the 12 months ended in March 2025.
Executives
Andrea M Stephen director THE MACERICH COMPANY, 401 WILSHIRE BLVD., SUITE 700, SANTA MONICA CA 90401
Kenneth Volk officer: SVP, Chief Marketing Officer 401 WILSHIRE BLVD., SUITE 700, SANTA MONICA CA 90401
Scott W Kingsmore officer: Chief Financial Officer 401 WILSHIRE BLVD., SUITE 700, SANTA MONICA CA 90401
Ann C Menard officer: EVP, CLO and Secretary 401 WILSHIRE BLVD., SUITE 700, SANTA MONICA CA 90401
Doug J Healey officer: EVP, Leasing 401 WILSHIRE BLVD., SUITE 700, SANTA MONICA CA 90401
Edward C Coppola director, officer: Executive Vice President THE MACERICH COMPANY, 401 WILSHIRE BVLD., STE. 700, SANTA MONICA CA 90401
O Hern Thomas E officer: EVP, Treasurer & CFO THE MACERICH COMPANY, 401 WILSHIRE BVLD., STE. 700, SANTA MONICA CA 90401
Christopher J Zecchini officer: Chief Accounting Officer 401 WILSHIRE BLVD., SUITE 700, SANTA MONICA CA 90401
Marianne Lowenthal director 401 WILSHIRE BLVD., SUITE 700, SANTA MONICA CA 90401
Enrique Jr Hernandez director INTER-CON SECURITY SYSTEMS, INC., 210 SOUTH DELACEY AVENUE, PASADENA CA 91105
Steven L Soboroff director THE MACERICH COMPANY, 401 WILSHIRE BVLD., STE. 700, SANTA MONICA CA 90401
Ontario Teachers Pension Plan Board 10 percent owner 5650 YONGE STREET, TORONTO A6 M2M 4H5
Dana K Anderson director, officer: Vice Chairman of the Board THE MACERICH COMPANY, 401 WILSHIRE BVLD., STE. 700, SANTA MONICA CA 90401
Alschuler John H Jr director C/O SL GREEN REALTY CORP, 420 LEXINGTON SUITE 1900, NEW YORK NY 10170
Steve Hash director C/O ALEXANDRIA REAL ESTATE EQUITIES, INC, 26 NORTH EUCLID AVENUE, PASADENA CA 91101