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NROM (Noble Roman's) Degree of Operating Leverage : -4.71 (As of Sep. 2024)


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What is Noble Roman's Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Noble Roman's's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -4.71. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NROM's Degree of Operating Leverage is ranked better than
80.88% of 340 companies
in the Restaurants industry
Industry Median: 1.055 vs NROM: -4.71

Noble Roman's Degree of Operating Leverage Historical Data

The historical data trend for Noble Roman's'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.

Noble Roman's Degree of Operating Leverage Chart

Noble Roman's Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.05 207.78 -8.17 -18.45 -339.77

Noble Roman's Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -61.36 -339.77 6.40 -9.47 -4.71

Competitive Comparison of Noble Roman's's Degree of Operating Leverage

For the Restaurants subindustry, Noble Roman's'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.


Noble Roman's's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Noble Roman's's Degree of Operating Leverage distribution charts can be found below:

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


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Noble Roman's Degree of Operating Leverage Calculation

Noble Roman's's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1.87 (Sep. 2024) / 2.349 (Sep. 2023) - 1 )/( 14.785 (Sep. 2024) / 14.172 (Sep. 2023) - 1 )
=-0.2039/0.0433
=-4.71***

* 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.


Noble Roman's  (OTCPK:NROM) 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.


Noble Roman's Degree of Operating Leverage Related Terms

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Noble Roman's Business Description

Traded in Other Exchanges
N/A
Address
6612 E. 75th Street, Suite 450, Indianapolis, IN, USA, 46250
Noble Roman's Inc is a restaurant operator. It sells and services franchises and licenses for non-traditional foodservice operations and stand-alone locations under the trade names Noble Roman's Pizza, Noble Roman's Take-N-Bake, Noble Roman's Craft Pizza and Pub, and Tuscano's Italian Style Subs. It is known for pizza and sub sandwiches, along with other related menu items, simple operating systems, fast service times, labor-minimizing operations, attractive food costs, and overall affordability.
Executives
Marcel Herbst director 834 W. ROSCOE ST., UNIT 2, CHICAGO X1 60657
Bt Brands, Inc. other: 5% owner 405 MAIN AVENUE WEST, SUITE 2D, WEST FARGO ND 58078
Robert P Stiller 10 percent owner 515 N. FLAGLER DR., SUITE 1702, WEST PALM BEACH FL 33401
William Wildman director 101 WEST OHIO STREET, SUITE 2000, INDIANAPOLIS IN 46204
Alan Scott Mobley director, officer: President ONE VIRGINIA AVE, SUITE 800, INDIANAPOLIS IN 46204
Douglas Harold Coape-arnold director 1000 POST ROAD, SCARSDALE NY 10583
Privet Fund Lp 10 percent owner, other: See Explanation of Responses 3280 PEACHTREE ROAD NE, SUITE 2670, Atlanta GA 30305
Mitchell Grunat officer: VP of Franchise Services 2 OAK PARK CT, NOVATO CA 94945
Privet Fund Management Llc 10 percent owner, other: See Explanation of Responses 3280 PEACHTREE ROAD NE, SUITE 2670, ATLANTA GA 30305
Paul W Mobley director, 10 percent owner, officer: CEO, CFO
Ryan Levenson 10 percent owner, other: See Explanation of Responses 2396 DELLWOOD DRIVE, ATLANTA GA 30305
James Douglas Bales officer: Vice President of Operations 15727 GATESHEAD DRIVE, WESTFIELD IN 46074
Geovest Capital Partners, Lp 10 percent owner 1000 POST ROAD, SCARSDALE NY 10583
Jeffrey R Gaither director 111 MONUMENT CIRCLE, SUITE 2700, INDIANAPOLIS IN 46204
James F Basili director 536 GRAND STREET, SUITE 505, HOBOKEN NJ 07030