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ROST (Ross Stores) Degree of Operating Leverage : 0.38 (As of Apr. 2025)


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What is Ross Stores Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ross Stores's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 0.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ROST's Degree of Operating Leverage is ranked better than
62.03% of 1093 companies
in the Retail - Cyclical industry
Industry Median: 1.28 vs ROST: 0.38

Ross Stores Degree of Operating Leverage Historical Data

The historical data trend for Ross Stores'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.

Ross Stores Degree of Operating Leverage Chart

Ross Stores Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.16 21.60 9.77 2.57 2.35

Ross Stores Quarterly Data
Jul20 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 2.79 2.82 2.59 2.35 0.38

Competitive Comparison of Ross Stores's Degree of Operating Leverage

For the Apparel Retail subindustry, Ross Stores'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.


Ross Stores's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

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

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


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Ross Stores Degree of Operating Leverage Calculation

Ross Stores'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
=( 2719.147 (Apr. 2025) / 2693.515 (Apr. 2024) - 1 )/( 21256.123 (Apr. 2025) / 20740.322 (Apr. 2024) - 1 )
=0.0095/0.0249
=0.38***

* 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.


Ross Stores  (NAS:ROST) 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.


Ross Stores Degree of Operating Leverage Related Terms

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


Ross Stores Business Description

Address
5130 Hacienda Drive, Dublin, CA, USA, 94568-7579
Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner. The company opportunistically procures excess brand-name merchandise made available via manufacturing overruns and retail liquidation sales at a 20%-60% discount to full prices. As such, its stores are often filled with a vast array of stock-keeping units, each with minimal product depth that creates a treasure hunt shopping experience. The firm's more than 1,800 Ross Dress for Less stores are primarily located in densely populated suburban communities and typically serve middle-income consumers. Ross also operates about 350 DD's Discounts chains targeting lower-income shoppers.
Executives
Michael Balmuth director, officer: CEO 5130 HACIENDA DRIVE, DUBLIN CA 94568
Michael J. Hartshorn officer: S.V.P. Chief Financial Officer 5130 HACIENDA DRIVE, DUBLIN CA 94568
Barbara Rentler director, officer: Chief Executive Officer 5130 HACIENDA DRIVE, DUBLIN CA 94568
Patricia H Mueller director 2481 MANANA DRIVE, DALLAS TX 75220
Michael K Kobayashi officer: SR VP, CIO 5130 HACIENDA DRIVE, DUBLIN CA 94568
Larree M Renda director
Brian R. Morrow officer: President, Merchandising 5130 HACIENDA DRIVE, DUBLIN CA 94568
Stephen C Brinkley officer: PRESIDENT, OPERATIONS 5130 HACIENDA DRIVE, DUBLIN CA 94568
Jeffrey P Burrill officer: SVP, CAO & CORP CONTROLLER 5130 HACIENDA DRIVE, DUBLIN CA 94568
Edward G Cannizzaro director 5130 HACIENDA DRIVE, DUBLIN CA 94568
Michael J Bush director 5130 HACIENDA DRIVE, DUBLIN CA 94568
Adam M Orvos officer: EVP, Chief Financial Officer 5130 HACIENDA DRIVE, DUBLIN CA 94566
George Orban director 5130 HACIENDA DRIVE, DUBLIN CA 94568
Travis Marquette officer: GSVP, Chief Financial Officer 2006 ROUTE 130 NORTH, BURLINGTON NJ 08016
Doniel Sutton director C/O MORNINGSTAR, INC., 22 WEST WASHINGTON STREET, CHICAGO IL 60602