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RSVR (Reservoir Media) Degree of Operating Leverage : 4.46 (As of Mar. 2025)


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What is Reservoir Media Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Reservoir Media's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.46. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RSVR's Degree of Operating Leverage is ranked worse than
72.49% of 985 companies
in the Media - Diversified industry
Industry Median: 1.21 vs RSVR: 4.46

Reservoir Media Degree of Operating Leverage Historical Data

The historical data trend for Reservoir Media'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.

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Reservoir Media Degree of Operating Leverage Chart

Reservoir Media Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
- 1.12 -1.35 -0.21 4.46

Reservoir Media Quarterly Data
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 -0.21 -1.04 -0.97 5.20 4.46

Competitive Comparison of Reservoir Media's Degree of Operating Leverage

For the Entertainment subindustry, Reservoir Media'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.


Reservoir Media's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Reservoir Media's Degree of Operating Leverage distribution charts can be found below:

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


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Reservoir Media Degree of Operating Leverage Calculation

Reservoir Media'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
=( 31.755 (Mar. 2025) / 22.26 (Mar. 2024) - 1 )/( 158.706 (Mar. 2025) / 144.856 (Mar. 2024) - 1 )
=0.4265/0.0956
=4.46***

* 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.


Reservoir Media  (NAS:RSVR) 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.


Reservoir Media Degree of Operating Leverage Related Terms

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


Reservoir Media Business Description

Traded in Other Exchanges
Address
200 Varick Street, Suite 801A, New York, NY, USA, 10014
Reservoir Media Inc is an independent music company. The company's segment includes Music Publishing; Recorded Music and others. It generates the maximum of its revenue from the Music Publishing segment.
Executives
Adam Rothstein director 101 CROSS HWY, WESTPORT CA 92610
Hassan Khosrowshahi 10 percent owner 75 VARICK STREET, 9TH FLOOR, NEW YORK NY 10013
Ezra S. Field director 75 VARICK STREEET, 9TH FLOOR, NEW YORK NY 10013
Stephen M. Cook director 75 VARICK STREET, 9TH FLOOR, NEW YORK NY 10013
Ryan P. Taylor director 381 PARK AVENUE SOUTH, ROOM 1101, NEW YORK NY 10016
Essex Equity Joint Investment Vehicle, Llc other: May Be Deemed a 10% Owner 375 HUDSON STREET, 12TH FLOOR, NEW YORK NY 10014
Richmond Hill Capital Partners, Lp other: May be deemed a 10% owner 375 HUDSON STREET, 12TH FLOOR, NEW YORK NY 10014
James A Heindlmeyer officer: Chief Financial Officer 75 VARICK STREET, 9TH FLOOR, NEW YORK NY 10013
Richmond Hill Advisors, Llc other: May be deemed a 10% owner 375 HUDSON STREET, 12TH FLOOR, NEW YORK NY 10014
Golnar Khosrowshahi director, officer: Chief Executive Officer C/O RESTAURANT BRANDS INTERATIONAL INC., 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Richmond Hill Investments, Llc 10 percent owner 381 PARK AVENUE SOUTH, SUITE 1101, NEW YORK NY 10016
Er Reservoir Llc 10 percent owner C/O RICHMOND HILL INVESTMENTS, 375 HUDSON STREET, 12TH FLOOR, NEW YORK NY 10014
Lafargue Rell Q. Jr. director, officer: President and COO 75 VARICK STREET, 9TH FLOOR, NEW YORK NY 10013
Gelder Neil De director 75 VARICK STREET, 9TH FLOOR, NEW YORK NY 10013
Essex Equity Holdings, Llc 10 percent owner 381 PARK AVENUE SOUTH, ROOM 1101, NEW YORK NY 10016