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PRDO (Perdoceo Education) Degree of Operating Leverage : 0.67 (As of Mar. 2025)


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What is Perdoceo Education Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Perdoceo Education's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PRDO's Degree of Operating Leverage is ranked better than
53.47% of 245 companies
in the Education industry
Industry Median: 0.8 vs PRDO: 0.67

Perdoceo Education Degree of Operating Leverage Historical Data

The historical data trend for Perdoceo Education'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.

Perdoceo Education Degree of Operating Leverage Chart

Perdoceo Education 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 6.08 2.44 -32.56 20.19 -1.22

Perdoceo Education 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 -12.37 0.05 0.59 -1.22 0.67

Competitive Comparison of Perdoceo Education's Degree of Operating Leverage

For the Education & Training Services subindustry, Perdoceo Education'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.


Perdoceo Education's Degree of Operating Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Perdoceo Education's Degree of Operating Leverage distribution charts can be found below:

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


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Perdoceo Education Degree of Operating Leverage Calculation

Perdoceo Education'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
=( 207.054 (Mar. 2025) / 198.563 (Mar. 2024) - 1 )/( 726.003 (Mar. 2025) / 682.67 (Mar. 2024) - 1 )
=0.0428/0.0635
=0.67***

* 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.


Perdoceo Education  (NAS:PRDO) 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.


Perdoceo Education Degree of Operating Leverage Related Terms

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Perdoceo Education Business Description

Traded in Other Exchanges
Address
1750 East Golf Road, Schaumburg, IL, USA, 60173
Perdoceo Education Corp is an American for-profit education company that focuses on quality postsecondary education online to a diverse student population, along with campus-based and blended learning programs. The company's important segments include the American InterContinental University, the University of St. Augustine for Health Sciences, and Colorado Technical University. These universities provide undergraduate, graduate, and doctoral degree programs focusing on business, technology, management, and social services, with the majority of the students enrolled in programs offered fully online. The majority of the company's revenue comes from the Colorado Technical University segment.
Executives
Michele A Peppers officer: Principal Accounting Officer PERDOCEO EDUCATION CORPORATION, 1750 E. GOLF ROAD, SCHAUMBURG IL 60173
Leslie T Thornton director 3921 COURTLAND CIRCLE, ALEXANDRIA VA 22305
Greg E. Jansen officer: SVP, General Counsel 1750 E. GOLF ROAD, SCHAUMBURG IL 60173
Ashish R Ghia officer: Interim CFO PERDOCEO EDUCATION CORPORATION, 1750 E. GOLF ROAD, SCHAUMBURG IL 60173
Todd S Nelson director, officer: President & CEO PERDOCEO EDUCATION CORPORATION, 1750 E. GOLF ROAD, SCHAUMBURG IL 60173
Elise Baskel officer: SVP, CTU 1750 E. GOLF ROAD, SCHAUMBURG IL 60173
John Robert Kline officer: SVP, AIU PERDOCEO EDUCATION CORPORATION, 1750 E. GOLF ROAD, SCHAUMBURG IL 60173
Patrick W Gross director
Gregory L. Jackson director 909 MONTGOMERY STREET, SUITE 400, SAN FRANCISCO CA 94133
William Dean Hansen director
Andrew Hurst officer: SVP PERDOCEO EDUCATION CORPORATION, 1750 E. GOLF ROAD, SCHAUMBURG IL 60173
David C. Czeszewski officer: SVP, CIO PERDOCEO EDUCATION CORPORATION, 1750 E. GOLF ROAD, SCHAUMBURG IL 60173
Thomas B Lally director 231 N. MARTINGALE ROAD, SCHAUMBURG IL 60173
Jeffrey David Ayers officer: SVP PERDOCEO EDUCATION CORPORATION, 231 N. MARTINGALE ROAD, SCHAUMBURG IL 60173
Alan Dupree Wheat director PERDOCEO EDUCATION CORPORATION, 1750 E. GOLF ROAD, SCHAUMBURG IL 60173