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SMRT (SmartRent) Degree of Operating Leverage : -1.03 (As of Mar. 2025)


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What is SmartRent Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. SmartRent's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SMRT's Degree of Operating Leverage is ranked better than
70.99% of 2665 companies
in the Software industry
Industry Median: 0.79 vs SMRT: -1.03

SmartRent Degree of Operating Leverage Historical Data

The historical data trend for SmartRent'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.

SmartRent Degree of Operating Leverage Chart

SmartRent Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 0.88 0.88 -1.42 0.12

SmartRent 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 -4.27 -10.86 5.24 0.12 -1.03

Competitive Comparison of SmartRent's Degree of Operating Leverage

For the Software - Application subindustry, SmartRent'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.


SmartRent's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, SmartRent's Degree of Operating Leverage distribution charts can be found below:

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


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SmartRent Degree of Operating Leverage Calculation

SmartRent'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
=( -47.973 (Mar. 2025) / -38.024 (Mar. 2024) - 1 )/( 165.74 (Mar. 2025) / 222.248 (Mar. 2024) - 1 )
=0.2617/-0.2543
=-1.03***

* 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.


SmartRent  (NYSE:SMRT) 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.


SmartRent Degree of Operating Leverage Related Terms

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


SmartRent Business Description

Industry
Traded in Other Exchanges
N/A
Address
8665 East Hartford Drive, Suite 200, Scottsdale, AZ, USA, 85255
SmartRent Inc is an enterprise smart home and smart building technology platform for property owners, managers and residents. The SmartRent solution is designed to provide property managers with seamless visibility and control over all their assets while delivering cost savings and additional revenue opportunities through all-in-one home control offerings for residents. Geographical, it operates in the United States and International; majority revenue being generated from the United States.
Executives
John C Dorman director C/O LOANDEPOT, INC. ATTN GENERAL COUNSEL, 26642 TOWNE CENTRE DRIVE, FOOTHILL RANCH CA 90402
Kristen Morse Lee officer: General Counsel 8665 E HARTFORD DRIVE SUITE 200, SCOTTSDALE AZ 85255
Robyn Young officer: Chief Marketing Officer 8665 E HARTFORD DRIVE, SUITE 200, SCOTTSDALE AZ 855255
Alana Beard director 6060 CENTER DRIVE 10TH FLOOR, LOS ANGELES CA 90045
Bruce C Strohm director C/O EQUITY RESIDENTIAL, TWO NORTH RIVERSIDE PLAZA, SUITE 400, CHICAGO IL 60606
Isaiah Derose-wilson officer: Chief Technology Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255
Robert T. Best director 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255
Bain Capital Venture Fund 2019, L.p. 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116
Christopher Jon Edmonds officer: Chief Revenue Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255
Demetrios Barnes officer: Chief Operating Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255
Mitch Karren officer: Chief Product Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300, SCOTTSDALE AZ 85255
Hiroshi Okamoto officer: CFO 8665 E HARTFORD DRIVE, SUITE 200, SCOTTSDALE AZ 85255
John Hanson Helm 10 percent owner C/O REAL ESTATE TECHNOLOGY VENTURES, 136 HEBER AVE, SUITE 304, PARK CITY UT 84060
Brian M Roberts officer: Chief Legal Officer 18835 N. THOMPSON PEAK PARKWAY, SUITE 300 & 380, SCOTTSDALE AZ 85255
Jonathan Wolter officer: Chief Financial Officer 1235 RADIO ROAD, SUITE 110, REDWOOD CITY CA 94065