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SPG (Simon Property Group) Degree of Operating Leverage : -4.35 (As of Mar. 2025)


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What is Simon Property Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Simon Property Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -4.35. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SPG's Degree of Operating Leverage is ranked better than
79.75% of 726 companies
in the REITs industry
Industry Median: 1.215 vs SPG: -4.35

Simon Property Group Degree of Operating Leverage Historical Data

The historical data trend for Simon Property Group'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.

Simon Property Group Degree of Operating Leverage Chart

Simon Property Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.83 6.44 -1.87 1.12 0.55

Simon Property Group Quarterly Data
Jun20 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 Premium Member Only 2.53 2.60 1.54 0.55 -4.35

Competitive Comparison of Simon Property Group's Degree of Operating Leverage

For the REIT - Retail subindustry, Simon Property Group'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.


Simon Property Group's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Simon Property Group's Degree of Operating Leverage distribution charts can be found below:

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


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Simon Property Group Degree of Operating Leverage Calculation

Simon Property Group'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
=( 3235.918 (Mar. 2025) / 3967.69 (Mar. 2024) - 1 )/( 5994.22 (Mar. 2025) / 5750.577 (Mar. 2024) - 1 )
=-0.1844/0.0424
=-4.35***

* 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.


Simon Property Group  (NYSE:SPG) 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.


Simon Property Group Degree of Operating Leverage Related Terms

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


Simon Property Group Business Description

Address
225 West Washington Street, Indianapolis, IN, USA, 46204
Simon Property Group is the second-largest real estate investment trust in the United States. Its portfolio includes an interest in 229 properties: 134 traditional malls, 70 premium outlets, 14 Mills centers (a combination of a traditional mall, outlet center, and big-box retailers), 6 lifestyle centers, and 5 other retail properties. Simon's portfolio averaged $739 in sales per square foot in 2024. The company also owns a 22% interest in Klépierre, a European retail company with investments in shopping centers in 14 countries, and joint-venture interests in 33 premium outlets across 11 countries.
Executives
Larry C Glasscock director SYSCO CORPORATION, 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Randall J Lewis director WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Allan B Hubbard director ANTHEM INC., 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Glyn Aeppel director 6 WHIPPOORWILL LANE, WESTPORT CT 06880
Gary M Rodkin director 700 ANDERSON HILL RD, PURCHASE NJ 10577
Reuben S Leibowitz director 466 LEXINGTON AVENUE 10TH FL, NEW YORK NY 10017
Marta R Stewart director C/O NORFOLK SOUTHERN CORP, THREE COMMERCIAL PL, NORFOLK VA 23510-9219
Daniel C. Smith director 3000 GODFREY GRADUATE AND EXECUTIVE CTR., 1275 EAST TENTH STREET, BLOOMINGTON IN 47405-1703
Stefan M Selig director 2 EAST 70TH STREET, NEW YORK NY 10021
Peggy Fang Roe director 100 COMMERCE LANE, APT. 1401, BETHESDA MD 20814
Karen N Horn director
Smith J Albert Jr director 111 MONUMENT CIRCLE, IN1-0175, INDIANAPOLIS IN 46204
Matthew A Jackson officer: SVP, Assistant Treasurer 225 W. WASHINGTON ST., INDIANAPOLIS IN 46256
Kevin M Kelly officer: Asst. General Counsel/Sec. 225 W. WASHINGTON ST., INDIANAPOLIS IN 46204
Donald G Frey officer: EVP, Treasurer 225 W. WASHINGTON ST., INDIANAPOLIS IN 46204