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PBI (Pitney Bowes) Degree of Operating Leverage : 156.63 (As of Mar. 2025)


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What is Pitney Bowes Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pitney Bowes's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 156.63. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PBI's Degree of Operating Leverage is ranked worse than
99.28% of 979 companies
in the Transportation industry
Industry Median: 0.86 vs PBI: 156.63

Pitney Bowes Degree of Operating Leverage Historical Data

The historical data trend for Pitney Bowes'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.

Pitney Bowes Degree of Operating Leverage Chart

Pitney Bowes 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 -14.36 -64.03 -6.43 -21.35 10.89

Pitney Bowes 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 43.19 -5.11 -4.61 10.89 156.63

Competitive Comparison of Pitney Bowes's Degree of Operating Leverage

For the Integrated Freight & Logistics subindustry, Pitney Bowes'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.


Pitney Bowes's Degree of Operating Leverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Pitney Bowes's Degree of Operating Leverage distribution charts can be found below:

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


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Pitney Bowes Degree of Operating Leverage Calculation

Pitney Bowes'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
=( 23.563 (Mar. 2025) / -34.435 (Mar. 2024) - 1 )/( 2302.174 (Mar. 2025) / 2327.199 (Mar. 2024) - 1 )
=-1.6843/-0.0108
=156.63***

* 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.


Pitney Bowes  (NYSE:PBI) 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.


Pitney Bowes Degree of Operating Leverage Related Terms

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


Pitney Bowes Business Description

Traded in Other Exchanges
Address
3001 Summer Street, Stamford, CT, USA, 06926
Pitney Bowes Inc is a technology-driven company that provides SaaS shipping solutions, mailing innovation, and financial services to clients around the globe. The company's reportable segments are SendTech Solutions and Presort Services. SendTech Solutions includes the revenue and related expenses from physical and digital mailing and shipping technology solutions, financing, services, supplies and other applications to help simplify and save on the sending, tracking and receiving of letters, parcels and flats. Presort Services includes the revenue and related expenses from sortation services to qualify large volumes of First Class Mail, Marketing Mail and Marketing Mail Flats/Bound Printed Matter for postal worksharing discounts. It derives maximum revenue from SendTech Solutions.
Executives
Kurt James Wolf director 175 BRICKYARD ROAD, ADAMS TOWNSHIP PA 16046
James Arthur Fairweather officer: EVP & Chief Innovation Officer 3001 SUMMER ST, STAMFORD CT 06926
Deborah Pfeiffer officer: President, Presort Services 3001 SUMMER ST, STAMFORD CT 06926
Christopher Johnson officer: SVP & President, GFS 3001 SUMMER ST, STAMFORD CT 06926
Andrew Robert Gold officer: SVP, Chief HR Officer 3001 SUMMER ST, STAMFORD CT 06926
Joseph Schmitt officer: SVP, Chief Information Officer 3001 SUMMER ST, STAMFORD CT 06926
Shemin Nurmohamed officer: President, SendTech Solutions 3001 SUMMER ST, STAMFORD CT 06926
Todd A. Everett director 2700 VIA FORTUNA, SUITE 300, AUSTIN TX 78746
Milena Alberti-perez director 8500 SW CREEKSIDE PLACE, BEAVERTON OR 97008
Katie May director 1990 E. GRAND AVE., EL SEGUNDO CA 90245
Steven Brill director 3001 SUMMER ST, STAMFORD CT 06926
James Darrell Thomas director 3700 JUNEAU AVENUE, MILWAUKEE WI 53208
Sheila A Stamps director C/O CIT GROUP, 1 CIT DRIVE, ATTN: GENERAL COUNSEL, LIVINGSTON NJ 07039
Mary Guilfoile director 227 WASHINGTON STREET STE.200, CONSHOHOCKEN PA 19428
Daniel J Goldstein officer: EVP/Chief Legal & Compliance 1 ELMCROFT ROAD, STAMFORD CT 06926