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PDM (Piedmont Realty Trust) Degree of Operating Leverage : -43.66 (As of Mar. 2025)


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What is Piedmont Realty Trust Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Piedmont Realty Trust's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -43.66. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PDM's Degree of Operating Leverage is ranked better than
92.45% of 742 companies
in the REITs industry
Industry Median: 1.195 vs PDM: -43.66

Piedmont Realty Trust Degree of Operating Leverage Historical Data

The historical data trend for Piedmont Realty Trust'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.

Piedmont Realty Trust Degree of Operating Leverage Chart

Piedmont Realty Trust 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 -3.15 69.97 48.85 -30.27 13.17

Piedmont Realty Trust 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 -45.05 -136.18 57.34 13.17 -43.66

Competitive Comparison of Piedmont Realty Trust's Degree of Operating Leverage

For the REIT - Office subindustry, Piedmont Realty Trust'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.


Piedmont Realty Trust's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Piedmont Realty Trust's Degree of Operating Leverage distribution charts can be found below:

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


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Piedmont Realty Trust Degree of Operating Leverage Calculation

Piedmont Realty Trust'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
=( 63.546 (Mar. 2025) / 34.121 (Mar. 2024) - 1 )/( 568.472 (Mar. 2025) / 579.927 (Mar. 2024) - 1 )
=0.8624/-0.0198
=-43.66***

* 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.


Piedmont Realty Trust  (NYSE:PDM) 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.


Piedmont Realty Trust Degree of Operating Leverage Related Terms

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


Piedmont Realty Trust Business Description

Traded in Other Exchanges
N/A
Address
5565 Glenridge Connector, Suite 450, Atlanta, GA, USA, 30342
Piedmont Office Realty Trust Inc is a real estate investment trust engaged in the acquisition, development, and management of commercial real estate properties throughout the U.S. The company's real estate portfolio is mainly composed of office properties located in the majority of American metropolitan areas. Piedmont derives the majority of its revenue in the form of rental income from tenants in mid- to long-term lease agreements. The vast majority of the company's revenue comes from the leasing of its assets in Washington D.C., New York City, Chicago, Atlanta, Minneapolis, Dallas, and Boston. Piedmont's large customers in terms of rental revenue are U.S. Government entities, business services companies, and financial institutions.
Executives
Christopher Brent Smith officer: EVP- NY Region & Strategic Inv 5565 GLENRIDGE CONNECTOR, STE. 450, ATLANTA GA 30342
Dale H. Taysom director 5565 GLENRIDGE CONNECTOR, STE. 450, ATLANTA GA 30342
Kelly Hefner Barrett director 4630 WYNMEADE PARK, MARIETTA GA 30067
Barbara B Lang director 8270 GREENSBORO DRIVE, SUITE 500, MCLEAN VA 22102
Jeffrey L. Swope director 5565 GLENRIDGE CONNECTOR, STE 450, ATLANTA GA 30342
Guilbert Edward H Iii officer: EVP - Finance & Treasurer 5565 GLENRIDGE CONNECTOR, SUITE 450, ATLANTA GA 30342
Robert E Bowers officer: Chief Financial Officer 5565 GLENRIDGE CONNECTOR, STE 450, ATLANTA GA 30342
Mary M. Hager director 5565 GLENRIDGE CONNECTOR, STE. 450, ATLANTA GA 30342
Frank C Mcdowell director PO BOX 29390, SAN FRANCISCO CA 94129-0350
Glenn Gary Cohen director 3333 NEW HYDE PARK ROAD, NEW HYDE PARK NY 11042
Venkatesh S. Durvasula director 39 INDIAN MILL ROADH, COS COB CT 06807
Laura P Moon officer: Chief Accounting Officer 5565 GLENRIDGE CONNECTOR, STE. 450, ATLANTA GA 30342
George M. Wells officer: EVP- Southeast Region 5565 GLENRIDGE CONNECTOR, STE. 450, ATLANTA GA 30342
Mizuho Securities Usa Llc other: See Remarks 1271 AVENUE OF THE AMERICAS, FLOORS - 2,3,4,18,19, NEW YORK NY 10020
Alex Valente officer: EVP- Southeast Region 5565 GLENRIDGE CONNECTOR, STE. 450, ATLANTA GA 30342