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MORN (Morningstar) Degree of Operating Leverage : 7.00 (As of Mar. 2025)


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What is Morningstar Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Morningstar's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 7.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MORN's Degree of Operating Leverage is ranked worse than
89.3% of 626 companies
in the Capital Markets industry
Industry Median: 0.755 vs MORN: 7.00

Morningstar Degree of Operating Leverage Historical Data

The historical data trend for Morningstar'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.

Morningstar Degree of Operating Leverage Chart

Morningstar 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 2.35 -0.53 -3.83 5.83 10.64

Morningstar 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 17.89 18.83 13.11 10.64 7.00

Competitive Comparison of Morningstar's Degree of Operating Leverage

For the Financial Data & Stock Exchanges subindustry, Morningstar'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.


Morningstar's Degree of Operating Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Morningstar's Degree of Operating Leverage distribution charts can be found below:

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


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Morningstar Degree of Operating Leverage Calculation

Morningstar'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
=( 557.6 (Mar. 2025) / 326.6 (Mar. 2024) - 1 )/( 2314.2 (Mar. 2025) / 2101.7 (Mar. 2024) - 1 )
=0.7073/0.1011
=7.00***

* 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.


Morningstar  (NAS:MORN) 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.


Morningstar Degree of Operating Leverage Related Terms

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


Morningstar Business Description

Traded in Other Exchanges
N/A
Address
22 West Washington Street, Chicago, IL, USA, 60602
Morningstar Inc is a provider of independent investment research to financial advisers, asset managers, and investors. The company focuses its operations on two core sectors: data and research. It offers data on investments such as mutual funds, stocks, exchange-traded funds, closed-end funds, separate accounts, and variable annuities. Further, the company tracks real-time market data of equity, derivative, currency exchanges, and other investments. In its research operation, Morningstar offers analyst research on passive and active mutual funds, alternative funds, and college saving plans. Morningstar's majority of the revenue is generated in the United States of America.
Executives
Joseph D Mansueto director, 10 percent owner, officer: Executive Chairman C/O MORNINGSTAR, INC., 225 WEST WACKER DRIVE, CHICAGO IL 60606
Caroline J Tsay director C/O ROSETTA STONE INC., 1919 NORTH LYNN STREET, 7TH FLOOR, ARLINGTON VA 22209
Jason Dubinsky officer: Chief Financial Officer C/O MORNINGSTAR, INC., 22 W. WASHINGTON STREET, CHICAGO IL 60602
William M Lyons director 225 WEST WACKER DRIVE, CHICAGO IL 60606
Daniel Joseph Dunn officer: Chief Revenue Officer C/O MORNINGSTAR, INC., 22 WEST WASHINGTON STREET, CHICAGO IL 60602
Steven N Kaplan director 1101 EAST 58TH STREET, CHICAGO IL 60637
Robin Diamonte director C/O MORNINGSTAR, INC., 22 WEST WASHINGTON ST., CHICAGO IL 60602
Gail S Landis director MORNINGSTAR, INC., 22 WEST WASHINGTON STREET, CHICAGO IL 60602
Bevin Desmond officer: Head of Talent and Culture C/O MORNINGSTAR, INC., 225 WEST WACKER DRIVE, CHICAGO IL 60606
Cheryl A Francis director 8237 GREYSTONE COURT, BURR RIDGE IL 60527
Doniel Sutton director C/O MORNINGSTAR, INC., 22 WEST WASHINGTON STREET, CHICAGO IL 60602
Stephen Joynt director C/O MORNINGSTAR, INC., 22 W. WASHINGTON STREET, CHICAGO IL 60602
Kimberly J Mcgarry officer: Global Controller & CAO 22 WEST WASHINGTON STREET, 6TH FLOOR, CHICAGO IL 60602
Kunal Kapoor director, officer: CEO MORNINGSTAR, INC., 22 WEST WASHINGTON STREET, CHICAGO IL 60602
Jack Noonan director 17000 GULF BLVD, UNIT B, N. REDINGTON BEACH FL 33708