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RMAX (RE/MAX Holdings) Degree of Operating Leverage : 132.23 (As of Mar. 2025)


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What is RE/MAX Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. RE/MAX Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 132.23. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RMAX's Degree of Operating Leverage is ranked worse than
97.89% of 1703 companies
in the Real Estate industry
Industry Median: 0.92 vs RMAX: 132.23

RE/MAX Holdings Degree of Operating Leverage Historical Data

The historical data trend for RE/MAX 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.

RE/MAX Holdings Degree of Operating Leverage Chart

RE/MAX 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 7.84 -5.35 -64.15 14.64 150.70

RE/MAX 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 14.51 16.84 -27.26 150.70 132.23

Competitive Comparison of RE/MAX Holdings's Degree of Operating Leverage

For the Real Estate Services subindustry, RE/MAX 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.


RE/MAX Holdings's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, RE/MAX Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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RE/MAX Holdings Degree of Operating Leverage Calculation

RE/MAX 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
=( 43.863 (Mar. 2025) / -8.603 (Mar. 2024) - 1 )/( 303.865 (Mar. 2025) / 318.557 (Mar. 2024) - 1 )
=-6.0986/-0.0461
=132.23***

* 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.


RE/MAX Holdings  (NYSE:RMAX) 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.


RE/MAX Holdings Degree of Operating Leverage Related Terms

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RE/MAX Holdings Business Description

Traded in Other Exchanges
Address
5075 South Syracuse Street, Denver, CO, USA, 80237
RE/MAX Holdings Inc operates as a franchisor of real estate brokerage services. It recruits and retains agents and sells franchises. The company's operating segments include Real Estate, Mortgage, Marketing Funds, and Others. It generates maximum revenue from the Real Estate segment.
Executives
Leah R Jenkins officer: VP, Chief Accounting Officer 5075 S. SYRACUSE ST., DENVER CO 80237
Magnolia Capital Fund, Lp 10 percent owner 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Susan L Winders officer: Vice President General Counsel 5075 S. SYRACUSE ST., DENVER CO 80237
Kathleen J Cunningham director 5075 S. SYRACUSE ST., DENVER CO 80237
Norman K. Jenkins director 9211 GLADYS FARM WAY, GAITHERSBURG MD 20882
Adam W Grosshans officer: VP, Chief Accounting Officer 5075 S SYRACUSE ST, DENVER CO 80218
Katherine Lee Scherping director 6312 SOUTH FIDDLERS GREEN CIRCLE, SUITE 200 NORTH, GREENWOOD VILLAGE CO 80111
Ronald E. Harrison director 5075 S. SYRACUSE ST., DENVER CO 80237
William Grady Ligon officer: Chief Information Officer 5075 S. SYRACUSE ST., DENVER CO 80237
Adam K Peterson 10 percent owner 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Magnolia Group, Llc 10 percent owner 1601 DODGE STREET, SUITE 3300, OMAHA NE 68102
Annita M Menogan director 5075 S. SYRACUSE ST., DENVER CO 80237
Brett A Ritchie officer: VP, Chief Accounting Officer 5075 S. SYRACUSE ST., DENVER CO 80237
Daniel J. Predovich director 5075 S. SYRACUSE ST., DENVER CO 80237
Laura G. Kelly director PO BOX 807, 663 HIGHWAY 60, MONETT MO 65708