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R (Ryder System) Degree of Operating Leverage : 4.75 (As of Mar. 2025)


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What is Ryder System Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ryder System's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

R's Degree of Operating Leverage is ranked worse than
77.72% of 1001 companies
in the Business Services industry
Industry Median: 0.99 vs R: 4.75

Ryder System Degree of Operating Leverage Historical Data

The historical data trend for Ryder System'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.

Ryder System Degree of Operating Leverage Chart

Ryder System 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 6.78 33.25 2.31 9.49 2.39

Ryder System 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 11.04 -30.10 -0.41 2.39 4.75

Competitive Comparison of Ryder System's Degree of Operating Leverage

For the Rental & Leasing Services subindustry, Ryder System'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.


Ryder System's Degree of Operating Leverage Distribution in the Business Services Industry

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

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


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Ryder System Degree of Operating Leverage Calculation

Ryder System'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
=( 1075 (Mar. 2025) / 854 (Mar. 2024) - 1 )/( 12731 (Mar. 2025) / 12073 (Mar. 2024) - 1 )
=0.2588/0.0545
=4.75***

* 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.


Ryder System  (NYSE:R) 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.


Ryder System Degree of Operating Leverage Related Terms

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


Ryder System Business Description

Traded in Other Exchanges
Address
2333 Ponce de Leon Boulevard, Suite 700, Miami Coral Gables, FL, USA, 33134
Ryder System Inc operates in three business segments: (1) Fleet Management Solutions which provides full-service leasing and leasing with flexible maintenance options, commercial rental and maintenance services of trucks, tractors and trailers to customers; (2) Supply Chain Solutions (SCS), which provides integrated logistics solutions, including distribution management, dedicated transportation, transportation management, brokerage, e-commerce, last mile, and professional services; and (3) Dedicated Transportation Solutions (DTS), which provides turnkey transportation solutions in the U.S., including dedicated vehicles, professional drivers, management, and administrative support.
Executives
Robert E Sanchez director, officer: Chair and CEO 11690 N.W. 105TH STREET, MIAMI FL 33178
John J. Diez officer: President, Ryder Dedicated 11690 N.W. 105TH STREET, MIAMI FL 33178
Robert D Fatovic officer: EVP, CLO & Corp. Secretary 11690 N.W. 105TH STREET, MIAMI FL 33178
John S. Sensing officer: President, Global Supply Chain 11690 N.W. 105TH STREET, MIAMI FL 33178
Nieto Luis P Jr director 11690 N.W. 105TH STREET, MIAMI FL 33178
E Follin Smith director C/O CONSTELLATION ENERGY GROUP INC, 250 W. PRATT ST., BALTIMORE MD 21201
Thomas M. Havens officer: President, Global FMS 11690 N.W. 105TH STREET, MIAMI FL 33178
Francisco Jr. Lopez officer: SVP & Chief HR Officer 11690 N.W. 105TH STREET, MIAMI FL 33178
Cristina Gallo-aquino officer: SVP and Controller 11690 N.W. 105TH STREET, MIAMI FL 33178
Karen M. Jones officer: EVP & Chief Marketing Officer 11690 N.W. 105TH STREET, MIAMI FL 33178
Sanford J. Hodes officer: SVP, Chief Procurement Officer 11690 NW 105 STREET, MIAMI FL 33178
Rajeev Ravindran officer: SVP & CIO 11690 N.W. 105TH STREET, MIAMI FL 33178
Charles M Swoboda director C/O CREE, INC., 4600 SILICON DRIVE, DURHAM NC 27703
Scott T Parker officer: EVP & CFO C/O RYDER SYSTEM, INC., 11690 N.W. 105TH STREET, MIAMI FL 33178
John J Gleason officer: EVP Chief Sales Officer 11690 N.W. 105TH STREET, MIAMI FL 33178