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RSG (Republic Services) Degree of Operating Leverage : 1.70 (As of Sep. 2024)


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What is Republic Services Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Republic Services's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 1.70. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RSG's Degree of Operating Leverage is ranked worse than
65.67% of 233 companies
in the Waste Management industry
Industry Median: 0.5 vs RSG: 1.70

Republic Services Degree of Operating Leverage Historical Data

The historical data trend for Republic Services'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.

Republic Services Degree of Operating Leverage Chart

Republic Services 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 -0.38 7.93 2.32 0.91 1.97

Republic Services 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 1.70 1.97 2.54 2.15 1.70

Competitive Comparison of Republic Services's Degree of Operating Leverage

For the Waste Management subindustry, Republic Services'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.


Republic Services's Degree of Operating Leverage Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Republic Services's Degree of Operating Leverage distribution charts can be found below:

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



Republic Services Degree of Operating Leverage Calculation

Republic Services'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
=( 2917.5 (Sep. 2024) / 2573.7 (Sep. 2023) - 1 )/( 15817.5 (Sep. 2024) / 14662.3 (Sep. 2023) - 1 )
=0.1336/0.0788
=1.70***

* 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.


Republic Services  (NYSE:RSG) 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.


Republic Services Degree of Operating Leverage Related Terms

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


Republic Services Business Description

Traded in Other Exchanges
Address
18500 North Allied Way, Phoenix, AZ, USA, 85054
Republic Services is the second-largest integrated provider of traditional solid waste services in the United States, operating roughly 207 active landfills and 246 transfer stations. The company serves residential, commercial, and industrial end markets. It also runs a sizable recycling operation in North America.
Executives
Brian M Delghiaccio officer: EVP Chief Financial Officer 18500 N. ALLIED WAY, PHOENIX AZ 85054
Tomago Collins director 18500 NORTH ALLIED WAY, PHOENIX AZ 85054
Katharine Weymouth director 1300 NORTH 17TH STREET, SUITE 1700, ARLINGTON VA 22209
Sandra M Volpe director 18500 N. ALLIED WAY, PHOENIX AZ 85054
Amanda Hodges officer: EVP, Chief Marketing Officer 18500 N. ALLIED WAY, PHOENIX AZ 85054
Ark Jon Vander officer: EVP-Chief Operating Officer 18500 N. ALLIED WAY, PHOENIX AZ 85054
Gregg Brummer officer: EVP, COO 18500 N. ALLIED WAY, PHOENIX AZ 85054
Margaret Reynolds director 18500 N. ALLIED WAY, PHOENIX AZ 85054
Rodriguez Courtney officer: EVP, Chief HR Officer 18500 N. ALLIED WAY, PHOENIX AZ 85054
Jennifer M Kirk director 5 GREENWAY PLAZA, SUITE 110, HOUSTON TX 77046
Michael A Duffy director C/O 18500 N. ALLIED WAY, PHOENIX AZ 85054
Timothy E Stuart officer: COO 18500 N ALLIED WAY, PHOENIX AZ 85054
Brian A Goebel officer: CAO 7025 E. GREENWAY PARKWAY, SUITE 100, SCOTTSDALE AZ 85254
Cascade Investment, L.l.c. 10 percent owner 2365 CARILLON POINT, KIRKLAND WA 98033
Katrina Liddell officer: EVP, Chief Commercial Officer 18500 N. ALLIED WAY, PHOENIX AZ 85054