GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » RLJ Lodging Trust (NYSE:RLJ) » Definitions » Degree of Operating Leverage

RLJ (RLJ Lodging Trust) Degree of Operating Leverage : 1.44 (As of Mar. 2025)


View and export this data going back to 2011. Start your Free Trial

What is RLJ Lodging Trust Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. RLJ Lodging Trust's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for RLJ Lodging Trust's Degree of Operating Leverage or its related term are showing as below:

RLJ's Degree of Operating Leverage is ranked worse than
54.09% of 734 companies
in the REITs industry
Industry Median: 1.205 vs RLJ: 1.44

RLJ Lodging Trust Degree of Operating Leverage Historical Data

The historical data trend for RLJ Lodging Trust'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.

RLJ Lodging Trust Degree of Operating Leverage Chart

RLJ Lodging Trust 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 3.18 -0.30 -3.11 3.02 0.70

RLJ Lodging Trust 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 1.56 0.48 1.93 0.70 1.44

Competitive Comparison of RLJ Lodging Trust's Degree of Operating Leverage

For the REIT - Hotel & Motel subindustry, RLJ Lodging Trust'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.


RLJ Lodging Trust's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, RLJ Lodging Trust's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where RLJ Lodging Trust's Degree of Operating Leverage falls into.


;
;

RLJ Lodging Trust Degree of Operating Leverage Calculation

RLJ Lodging Trust'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
=( 173.771 (Mar. 2025) / 167.011 (Mar. 2024) - 1 )/( 1373.149 (Mar. 2025) / 1335.484 (Mar. 2024) - 1 )
=0.0405/0.0282
=1.44***

* 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.


RLJ Lodging Trust  (NYSE:RLJ) 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.


RLJ Lodging Trust Degree of Operating Leverage Related Terms

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


RLJ Lodging Trust Business Description

Industry
Traded in Other Exchanges
Address
7373 Wisconsin Avenue, Suite 1500, Bethesda, MD, USA, 20814
RLJ Lodging Trust is a real estate investment trust focused on premium-branded, rooms-oriented, high-margin, focused-service, and compact full-service hotels located within the heart of demand locations. Its hotels are geographically diverse and concentrated in urban markets providing multiple demand generators from business, leisure, and other travelers. Its hotels are under the Marriott, Hilton, and Hyatt brand names. The Hotel is a single reportable segment. Its hotel segment revenues are derived from the operation of hotel properties which includes room revenue by renting hotel rooms, food and beverage revenue from the sale of food and beverages, and other revenue from parking fees, resort fees, gift shop sales, and other guest service fees.
Executives
Patricia L Gibson director 545 E JOHN CARPENTER FREEWAY, SUITE 1300, IRVING TX 75062
Arthur Reginald Collins director 3911 LORCOM LANE, ARLINGTON VA 22207
Nathaniel A Davis director 1500 ECKINGTON PLACE NE, WASHINGTON DC 20002
Chad Perry officer: EVP and General Counsel C/O TANGER FACTORY OUTLET CENTERS, INC., 3200 NORTHLINE AVENUE, SUITE 360, GREENSBORO NC 27408
Thomas Bardenett officer: EVP and COO C/O EXTENDED STAY AMERICA, INC., 11525 N. COMMUNITY HOUSE ROAD, SUITE 100, CHARLOTTE NC 28277
La Forgia Robert M director C/O HILTON HOTELS CORP, 9336 CIVIC CENTER DRIVE, BEVERLY HILLS CA 90210
Robert Mccarthy director C/O SANTANDER CONSUMER USA HOLDINGS INC, 1601 ELM STREET, SUITE 800, DALLAS TX 75201
Evan Bayh director 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Robin Mcbride Zeigler director 44 SOUTH BAYLES AVENUE, PORT WASHINGTON NY 11050
Sean M Mahoney officer: EVP, CFO and Treasurer 3 BETHESDA METRO CTR #1000, BETHESDA MD 20814
Robert L Johnson director, officer: Executive Chairman C/O RLJ COMPANIES, 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Leslie D. Hale director, officer: President and CEO 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Christopher Andrew Gormsen officer: Chief Accounting Officer C/O RLJ LODGING TRUST, 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Joseph J Ryan director C/O RLJ LODGING TRUST, 3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20817
California Public Employees Retirement System 10 percent owner 400 Q ST, SUITE 4800, SACRAMENTO CA 95811