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PRAA (PRA Group) Degree of Operating Leverage : 6.49 (As of Mar. 2025)


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What is PRA Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. PRA Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.49. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PRAA's Degree of Operating Leverage is ranked worse than
88.48% of 382 companies
in the Credit Services industry
Industry Median: 0.855 vs PRAA: 6.49

PRA Group Degree of Operating Leverage Historical Data

The historical data trend for PRA 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.

PRA Group Degree of Operating Leverage Chart

PRA 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 -2.91 7.24 3.24 6.73 -67.19

PRA 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 19.16 118.06 -18.88 -67.19 6.49

Competitive Comparison of PRA Group's Degree of Operating Leverage

For the Credit Services subindustry, PRA 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.


PRA Group's Degree of Operating Leverage Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, PRA Group's Degree of Operating Leverage distribution charts can be found below:

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


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PRA Group Degree of Operating Leverage Calculation

PRA 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
=( 204.282 (Mar. 2025) / 78.709 (Mar. 2024) - 1 )/( 1138.204 (Mar. 2025) / 913.62 (Mar. 2024) - 1 )
=1.5954/0.2458
=6.49***

* 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.


PRA Group  (NAS:PRAA) 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.


PRA Group Degree of Operating Leverage Related Terms

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


PRA Group Business Description

Traded in Other Exchanges
Address
120 Corporate Boulevard, Norfolk, VA, USA, 23502
PRA Group Inc is a leader in acquiring and collecting nonperforming loans. The company returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe, and Australia. It is also engaged in providing fee-based services on class action claims recoveries in the United States. The company's portfolio segments include; Core, which is engaged in purchasing and collecting nonperforming loans, which the originators have not chosen not to pursue, and the Insolvency segment which is engaged in purchasing and collecting nonperforming loans where the customer is involved in a bankruptcy proceeding.
Executives
Geir Olsen officer: CEO-PRA Group Europe RONDA DE LA AVUTARDA 28A, MADRID U3 28043
Brett Lee Paschke director 150 N RIVERSIDE, WILLIAM BLAIR & COMPANY, CHICAGO IL 60606
Vikram A Atal director C/O THE STUDENT LOAN CORP. LEGAL DEPT., 750 WASHINGTON BLVD. 9TH FLOOR, STAMFORD CT 06901
Rakesh Sehgal officer: Chief Financial Officer 150 CORPORATE BLVD, NORFOLK VA 23502
Steven D Fredrickson director, officer: President, CEO, Chairman 120 CORPORATE BLVD STE 100, NORFOLK VA 23502
Marjorie Mary Connelly director 2580 PALMER DR, KESWICK VA 22947
Richard Owen James officer: Global Investments Officer 150 CORPORATE BLVD, NORFOLK VA 23502
Steven C Roberts officer: Chief Global Strategy Bus Dev 120 CORPORATE BLVD, NORFOLK VA 23502
Latisha Owens Tarrant officer: General Counsel & CHRO 150 CORPORATE BLVD, NORFOLK VA 23502
Kevin P Stevenson officer: EVP, CFO, Treasurer, Asst Secy 120 CORPORATE BLVD STE 100, NORFOLK VA 23502
Peter M Graham officer: EVP, Chief Financial Officer 150 CORPORATE BLVD, NORFOLK VA 23502
John H Fain director REFLECTIONS II, THIRD FLOOR 200 GOLDEN OAK COURT, VIRGINIA BEACH VA 23452
Laura White officer: Chief Compliance Officer 120 CORPORATE BLVD, NORFOLK VA 23502
Christopher B Graves officer: EVP, Core Acquisitions 150 CORPORATE BOULEVARD, NORFOLK VA 23502
Christopher D. Lagow officer: SVP- General Counsel 150 CORPORATE BLVD, NORFOLK VA 23502