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NXST (Nexstar Media Group) Degree of Operating Leverage : 4.51 (As of Mar. 2025)


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What is Nexstar Media Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Nexstar Media Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.51. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NXST's Degree of Operating Leverage is ranked worse than
72.66% of 984 companies
in the Media - Diversified industry
Industry Median: 1.22 vs NXST: 4.51

Nexstar Media Group Degree of Operating Leverage Historical Data

The historical data trend for Nexstar Media Group'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.

Nexstar Media Group Degree of Operating Leverage Chart

Nexstar Media Group 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 2.34 -1.36 1.07 8.53 6.83

Nexstar Media Group 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 5.81 4.29 14.79 6.83 4.51

Competitive Comparison of Nexstar Media Group's Degree of Operating Leverage

For the Broadcasting subindustry, Nexstar Media Group'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.


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

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

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


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Nexstar Media Group Degree of Operating Leverage Calculation

Nexstar Media Group'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
=( 1295 (Mar. 2025) / 952 (Mar. 2024) - 1 )/( 5356 (Mar. 2025) / 4960 (Mar. 2024) - 1 )
=0.3603/0.0798
=4.51***

* 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.


Nexstar Media Group  (NAS:NXST) 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.


Nexstar Media Group Degree of Operating Leverage Related Terms

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


Nexstar Media Group Business Description

Traded in Other Exchanges
Address
545 E. John Carpenter Freeway, Suite 700, Irving, TX, USA, 75062
Nexstar is the largest television station owner-operator in the United States with over 200 stations in 116 markets, reaching 220 million people. Of its 200 stations, 155 are affiliated with the four national broadcast networks: CBS, Fox, NBC, and ABC. The 2019 merger with Tribune made Nexstar the top broadcast affiliate for both Fox and CBS as well as the number two partner for NBC and number three for ABC. The firm maintains stations in 13 of the top 20 television markets and reaches 68% of US TV households. Nexstar also owns NewsNation (formerly WGN), a cable news network, 75% of the fifth national broadcaster, the CW, and a 31% stake in Food Network and Cooking Channel.
Executives
Michael Biard officer: President & COO C/O NEXSTAR MEDIA GROUP, INC., 545 E. JOHN CARPENTER FREEWAY, SUITE 700, IRVING TX 75062
Lee Ann Gliha officer: EVP, Chief Financial Officer 545 E. JOHN CARPENTER FREEWAY, IRVING TX 75062
Andrew Alford officer: See Remarks 545 E. JOHN CARPENTER FREEWAY, SUITE 700, IRVING TX 75062
Brett Jenkins officer: Chief Technology Officer C/O NEXSTAR MEDIA GROUP, INC., 545 E. JOHN CARPENTER FREEWAY, STE 700, IRVING TX 75062
Blake Russell officer: Vice President, Marketing 545 E. JOHN CARPENTER FREEWAY, SUITE 700, IRVING TX 75062
Gary Weitman officer: See Remarks 545 E. JOHN CARPENTER FREEWAY, SUITE 700, IRVING TX 75062
Sean Compton officer: President, Networks 545 E. JOHN CARPENTER FREEWAY, SUITE 700, IRVING TX 75062
Dana Zimmer officer: President, Distribution 545 E. JOHN CARPENTER FREEWAY, SUITE 700, IRVING TX 75062
Rachel Morgan officer: EVP General Counsel 545 E. JOHN CARPENTER FREEWAY, IRVING TX 75062
Charles Thomas Mcmillen director 1103 SOUTH CAROLINA AVENUE, WASHINGTON DC 20003
Perry A Sook director, officer: Chief Executive Officer 545 E. JOHN CARPENTER FREEWAY, SUITE 700, IRVING TX 75062
Bernadette S. Aulestia director 203 EAST MAIN STREET, SPARTANBURG SC 29319
Lisbeth Mcnabb director C/O NEXSTAR BROADCASTING GROUP, INC., 909 LAKE CAROLYN PARKWAY, IRVING TX 75039-3906
John R Muse director 2100 MCKINNEY AVENUE, SUITE 1600, DALLAS TX 75201
Jay M. Grossman director C/O ABRY PARTNERS, LLC, 888 BOYLSTON STREET, BOSTON MA 02199