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SCS (Steelcase) Degree of Operating Leverage : 99.85 (As of Feb. 2025)


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What is Steelcase Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Steelcase's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 99.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SCS's Degree of Operating Leverage is ranked worse than
97.16% of 422 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.545 vs SCS: 99.85

Steelcase Degree of Operating Leverage Historical Data

The historical data trend for Steelcase'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.

Steelcase Degree of Operating Leverage Chart

Steelcase Annual Data
Trend Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.66 -7.13 11.64 -29.34 99.85

Steelcase Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 -29.34 -13.54 -25.11 -33.97 99.85

Competitive Comparison of Steelcase's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, Steelcase'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.


Steelcase's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Steelcase's Degree of Operating Leverage distribution charts can be found below:

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


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Steelcase Degree of Operating Leverage Calculation

Steelcase's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 159.9 (Feb. 2025) / 133 (Feb. 2024) - 1 )/( 3166 (Feb. 2025) / 3159.6 (Feb. 2024) - 1 )
=0.2023/0.002
=99.85***

* 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.


Steelcase  (NYSE:SCS) 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.


Steelcase Degree of Operating Leverage Related Terms

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


Steelcase Business Description

Traded in Other Exchanges
Address
901 44th Street SE, Grand Rapids, MI, USA, 49508
Steelcase Inc is a furniture company based in the United States. Its brands such as Steelcase, AMQ, Coalesse, Designtex, and others offer a portfolio of furniture and architectural products and services designed to help customers create workplaces. It markets its products and services to businesses and organizations predominantly through a network of dealers and also sells to consumers in markets around the world through web-based and retail distribution channels. The company's reportable segments include the Americas which generates key revenue, and International.
Executives
Robert G Krestakos officer: VP, Global Operations 901 44TH STREET SE, GRAND RAPIDS MI 49508
David C Sylvester officer: Senior Vice President, CFO 901 44TH STREET SE, GRAND RAPIDS MI 49508
Nicole Cherie Mcgrath officer: VP, Corp Controller and CAO 901 44TH STREET SE, GRAND RAPIDS MI 49508
Smith Allan W Jr officer: VP, Global Marketing 901 44TH STREET SE, GRAND RAPIDS MI 49508
Donna K Flynn officer: VP, Global Talent Management 901 44TH STREET SE, GRAND RAPIDS MI 49508
Lizbeth S O'shaughnessy officer: Senior VP, CLO and Secretary 901 44TH STREET SE, GRAND RAPIDS MI 49508
Wege Peter M Ii director 901 44TH ST SE, GRAND RAPIDS MI 49508
Sanjay Gupta director 2775 SANDERS ROAD, NORTHBROOK IL 60062
Sara E Armbruster officer: VP, WS Futures & Corp Strategy 901 44TH STREET SE, GRAND RAPIDS MI 49508
Jennifer C Niemann director 901 44TH STREET SE, GRAND RAPIDS MI 49508
Steven Douglas Miller officer: VP, Chief Technology Officer 901 44TH STREET SE, GRAND RAPIDS MI 49508
Guillaume M Alvarez officer: Senior VP, EMEA 901 44TH STREET SE, GRAND RAPIDS MI 49508
Kate P Wolters director 901 44TH ST, GRAND RAPIDS MI 49508
Robin L Zondervan officer: Corporate Controller and CAO 901 44TH STREET SE, GRAND RAPIDS MI 49508
Eddy F Schmitt officer: Senior VP, Americas 901 44TH STREET SE, GRAND RAPIDS MI 49508