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RENT (Rent the Runway) Degree of Operating Leverage : -48.98 (As of Apr. 2025)


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What is Rent the Runway Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Rent the Runway's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was -48.98. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Rent the Runway's Degree of Operating Leverage or its related term are showing as below:

RENT's Degree of Operating Leverage is ranked better than
96.53% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.295 vs RENT: -48.98

Rent the Runway Degree of Operating Leverage Historical Data

The historical data trend for Rent the Runway'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.

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Rent the Runway Degree of Operating Leverage Chart

Rent the Runway Annual Data
Trend Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial -0.01 -0.12 -0.50 -34.39 -14.35

Rent the Runway Quarterly Data
Jan20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
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 10.60 103.51 -8.67 -14.35 -48.98

Competitive Comparison of Rent the Runway's Degree of Operating Leverage

For the Apparel Retail subindustry, Rent the Runway'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.


Rent the Runway's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rent the Runway's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Rent the Runway's Degree of Operating Leverage falls into.


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Rent the Runway Degree of Operating Leverage Calculation

Rent the Runway's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -50.7 (Apr. 2025) / -71.9 (Apr. 2024) - 1 )/( 300.8 (Apr. 2025) / 299 (Apr. 2024) - 1 )
=-0.2949/0.006
=-48.98***

* 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.


Rent the Runway  (NAS:RENT) 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.


Rent the Runway Degree of Operating Leverage Related Terms

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


Rent the Runway Business Description

Traded in Other Exchanges
N/A
Address
10 Jay Street, Brooklyn, NY, USA, 11201
Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe to, or buy designer apparel and accessories. The company gives customers access to its unlimited closet through its subscription offering (Subscription) or the ability to rent a-la-carte through its reserve offering (Reserve). The company also gives its subscribers and customers the ability to buy its products through its Resale offering. The Closet in the Cloud offers a wide assortment of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear.
Executives
Becky Case officer: SVP, Engineering C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Jennifer Hyman director, 10 percent owner, officer: Chief Executive Officer 767 FIFTH AVENUE, C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Cara Schembri officer: GC & Secretary C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Siddharth Thacker officer: Chief Financial Officer C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Andrew Rau officer: SVP, Supply Chain & Inventory C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Sarah K Tam officer: Chief Merchant Officer C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Brian Donato officer: Chief Supply Chain Officer C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Anushka Salinas officer: President & COO C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Larry Steinberg officer: Chief Technology Officer 1000 WINDWARD CONCOURSE, SUITE 250, ALPHARETTA GA 30005
Emil Michael director C/O DPCM CAPITAL, INC., 382 NE 191 STREET, # 24148, MIAMI FL 33179
Scarlett O'sullivan officer: Chief Financial Officer 225 WEST WASHINGTON STREET, INDIANAPOLIS IN 46204
Andrea Alexander officer: Chief People Officer C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Carley Roney director C/O XO GROUP INC., 195 BROADWAY, 25TH FLOOR, NEW YORK NY 10007
Beth J Kaplan director 1716 LOCUST STREET, DES MOINES IA 50309
Timothy E Bixby director C/O SHUTTERSTOCK, 350 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10118