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ROL (Rollins) Degree of Operating Leverage : 1.40 (As of Sep. 2024)


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What is Rollins Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Rollins's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 1.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ROL's Degree of Operating Leverage is ranked worse than
56.12% of 98 companies
in the Personal Services industry
Industry Median: 1.085 vs ROL: 1.40

Rollins Degree of Operating Leverage Historical Data

The historical data trend for Rollins'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.

Rollins Degree of Operating Leverage Chart

Rollins Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.27 5.16 2.58 0.34 1.48

Rollins Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.49 1.48 1.28 1.52 1.40

Competitive Comparison of Rollins's Degree of Operating Leverage

For the Personal Services subindustry, Rollins'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.


Rollins's Degree of Operating Leverage Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Rollins's Degree of Operating Leverage distribution charts can be found below:

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



Rollins Degree of Operating Leverage Calculation

Rollins's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 662.463 (Sep. 2024) / 573.293 (Sep. 2023) - 1 )/( 3310.625 (Sep. 2024) / 2980.582 (Sep. 2023) - 1 )
=0.1555/0.1107
=1.40***

* 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.


Rollins  (NYSE:ROL) 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.


Rollins Degree of Operating Leverage Related Terms

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


Rollins Business Description

Traded in Other Exchanges
Address
2170 Piedmont Road, N.E., Atlanta, GA, USA, 30324
Rollins is a global leader in route-based pest-control services, with operations spanning North, Central and South America, Europe, the Middle East and Africa and Australia. Its portfolio of pest-control brands includes the prominent Orkin brand, market leader in the US, where it boasts near national coverage, and in Canada. Residential pest and termite prevention dominates the services provided by Rollins, owing to the group's ongoing focus on US and Canadian markets.
Executives
Timothy Curtis Rollins 10 percent owner 2801 BUFORD HIGHWAY, NE, SUITE 520, ATLANTA GA 30329
Elizabeth B Chandler officer: Corporate Secretary C/O ASBURY AUTOMOTIVE GROUP, INC., 2905 PREMIERE PKWY NW, 300, DULUTH GA 30097
Jerry Jr. Gahlhoff director, officer: PRESIDENT & CEO 2170 PIEDMONT ROAD N.E., ATLANTA GA 30324
Kenneth D. Krause officer: EXEC. VP, CFO AND TREASURER 1000 CRANBERRY WOODS DRIVE, CRANBERRY TOWNSHIP PA 16066
Thomas D Tesh officer: Chief Admin. Officer and CIO 2170 N PIEDMONT ROAD NE, ATLANTA GA 30324
Traci Hornfeck officer: Principal Accounting Officer 2170 N PIEDMONT ROAD NE, ATLANTA GA 30324
John F Wilson director, officer: President and COO 2170 PIEDMONT ROAD, NE, ATLANTA GA 30324
Paul Russell Hardin director 2999 WILDWOOD PARKWAY SE, ATLANTA GA 30339
Lor Inc 10 percent owner C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
Gary W. Rollins Voting Trust U/a Dated September 14, 1994 10 percent owner C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY, NE, ATLANTA GA 30329
R. Randall Rollins Voting Trust U/a Dated August 25, 1994 10 percent owner C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
Patrick J. Gunning director 1958 CALDER COURT, DUNWOODY GA 30338
Jerry W Nix director 2999 WILDWOOD PARKWAY, ATLANTA GA 30339
Louise S Sams director C/O COSTAR GROUP, INC., 1331 L STREET NW, WASHINGTON DC 20005
Gregory B Morrison director 8214 WESTCHESTER DRIVE, SUITE 400, DALLAS TX 75225