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PRG (PROG Holdings) Degree of Operating Leverage : 2.01 (As of Mar. 2025)


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What is PROG Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. PROG Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.01. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PRG's Degree of Operating Leverage is ranked worse than
63.69% of 1008 companies
in the Business Services industry
Industry Median: 0.99 vs PRG: 2.01

PROG Holdings Degree of Operating Leverage Historical Data

The historical data trend for PROG Holdings'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.

PROG Holdings Degree of Operating Leverage Chart

PROG Holdings 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 59.51 2.92 14.70 -3.99 -5.95

PROG Holdings 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 0.75 4.28 23.96 -5.95 2.01

Competitive Comparison of PROG Holdings's Degree of Operating Leverage

For the Rental & Leasing Services subindustry, PROG Holdings'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.


PROG Holdings's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, PROG Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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PROG Holdings Degree of Operating Leverage Calculation

PROG Holdings'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
=( 224.412 (Mar. 2025) / 205.356 (Mar. 2024) - 1 )/( 2505.714 (Mar. 2025) / 2394.994 (Mar. 2024) - 1 )
=0.0928/0.0462
=2.01***

* 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.


PROG Holdings  (NYSE:PRG) 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.


PROG Holdings Degree of Operating Leverage Related Terms

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PROG Holdings Business Description

Traded in Other Exchanges
Address
256 West Data Drive, Draper, UT, USA, 84020-2315
PROG Holdings Inc is a financial technology holding company that provides transparent and competitive payment options to consumers. The company has two reportable segments: Progressive Leasing, an in-store, app-based, and e-commerce point-of-sale lease-to-own solutions provider; and Vive Financial (Vive), an omnichannel provider of second-look revolving credit products. The majority of the revenue of the company is earned through the Progressive Leasing segment.
Executives
Caroline Sio-chin Sheu director 256 WEST DATA DRIVE, DRAPER UT 84020
Douglas C Curling director 1000 ALDERMAN DRIVE, ALPHARETTA GA 30005
Brian Garner officer: Chief Financial Officer 256 WEST DATA DR, DRAPER UT 84020
George M Sewell officer: Principal Acct Off, VP Fin Rep 256 WEST DATA DR, DRAPER UT 84020
Curtis Linn Doman director, officer: Chief Innovation Officer-PROG 256 DATA DR, DRAPER UT 84020
Michael Todd King officer: Chief Legal and Compliance Off 256 WEST DATA DRIVE, DRAPER UT 84020
Steven A Michaels director, officer: CEO 256 DATA DR, DRAPER UT 84020
Thomas Eugene Vin Iv officer: General Counsel and Corp Sec 632 NORTH TARA COURT, WHICHITA KS 67206
Ramon Michael Martinez director 256 WEST DATA DRIVE, DRAPER UT 84020
Ray M Robinson director 1170 PEACHTREE STREET NE, SUITE 2300, ATLANTA GA 30309
Kathy T Betty director 309 E. PACES FERRY ROAD, ATLANTA GA 30305
Cynthia N Day director 75 PIEDMONT AVE, ATLANTA GA 30303
James P. Smith director 256 WEST DATA DRIVE, DRAPER UT 84020
Marvin A Fentress officer: General Counsel, Corp Sec 256 WEST DATA DR, DRAPER UT 84020
Blake Wakefield officer: President, Chief Revenue Off 256 WEST DATA DR, DRAPER UT 84020