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MCS (Marcus) Degree of Operating Leverage : -27.36 (As of Mar. 2025)


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What is Marcus Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Marcus's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -27.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MCS's Degree of Operating Leverage is ranked better than
91.77% of 984 companies
in the Media - Diversified industry
Industry Median: 1.22 vs MCS: -27.36

Marcus Degree of Operating Leverage Historical Data

The historical data trend for Marcus'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.

Marcus Degree of Operating Leverage Chart

Marcus Annual Data
Trend May15 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 5.22 -0.84 -2.78 20.49 -119.19

Marcus 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 9.88 41.39 28.26 -119.19 -27.36

Competitive Comparison of Marcus's Degree of Operating Leverage

For the Entertainment subindustry, Marcus'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.


Marcus's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Marcus's Degree of Operating Leverage distribution charts can be found below:

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


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Marcus Degree of Operating Leverage Calculation

Marcus'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
=( -3.888 (Mar. 2025) / 26.97 (Mar. 2024) - 1 )/( 745.779 (Mar. 2025) / 715.846 (Mar. 2024) - 1 )
=-1.1442/0.0418
=-27.36***

* 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.


Marcus  (NYSE:MCS) 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.


Marcus Degree of Operating Leverage Related Terms

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


Marcus Business Description

Traded in Other Exchanges
N/A
Address
111 East Kilbourn Avenue, Suite 1200, Milwaukee, WI, USA, 53202-6628
Marcus Corp is engaged in two business segments, which are movie theatres and Hotels and Resorts. The movie theatres segment operates multiscreen motion picture theatres in Wisconsin, Illinois, Iowa, Minnesota, Missouri, Nebraska, North Dakota, Ohio and others, a family entertainment center in Wisconsin and a retail center in Missouri; Hotels and Resorts segment owns and operates full-service hotels and resorts in Wisconsin, Illinois, and Nebraska and manages full-service hotels, resorts and other properties in Wisconsin, Minnesota, Texas, Nevada, California, and North Carolina. It generates maximum revenue from the Theatres segment.
Executives
Diane M Gershowitz director, 10 percent owner
Thomas F Kissinger officer: General Counsel and Secretary
Michael Reade Evans officer: Pres., Marcus Hotels & Resorts 100 EAST WISCONSIN AVENUE, SUITE 1900, MILWAUKEE WI 53202-4125
Mark A Gramz officer: Pres., Marcus Theatres Corp* 100 EAST WISCONSIN AVENUE, SUITE 1900, MILWAUKEE WI 53202-4125
Austin M Ramirez director ONE MAIN STREET, EVANSVILLE IN 47708
Brian Jay Stark director 3600 SOUTH LAKE DRIVE, ST. FRANCIS WI 53235
Katherine M. Gehl director C/O GEHL FOODS, N116 W15970 MAIN STREET, GERMANTOWN WI 53022
Bruce J Olson director, officer: Group Vice President
Chad M Paris officer: CFO & Treasurer 833 EAST MICHIGAN STREET, SUITE 900, MILWAUKEE WI 53202
Gregory S Marcus officer: Senior Vice President 100 EAST WISCONSIN AVENUE, SUITE 1900, MILWAUKEE WI 53202-4125
Rolando B Rodriguez officer: Pres. & CEO - Marcus Theatres C/O AMC ENTERTAINMENT INC, 920 MAIN ST, KANSAS CITY MO 64105
Douglas A Neis officer: CFO and Treasurer
David M Baum director 784 MORRIS TURNPIKE #367, SHORT HILLS NJ 07078
Vss-southern Holdings Llc 10 percent owner C/O VERONIS SUHLER STEVENSON, 390 PARK AVENUE, NEW YORK NY 10022
Philip L Milstein director 390 PARK AVENUE, SUITE 600, NEW YORK NY 10022