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SVC (Service Properties Trust) Degree of Operating Leverage : -54.95 (As of Dec. 2024)


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What is Service Properties Trust Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Service Properties Trust's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -54.95. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SVC's Degree of Operating Leverage is ranked better than
93.41% of 728 companies
in the REITs industry
Industry Median: 1.25 vs SVC: -54.95

Service Properties Trust Degree of Operating Leverage Historical Data

The historical data trend for Service Properties Trust'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.

Service Properties Trust Degree of Operating Leverage Chart

Service Properties Trust 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 2.17 -154.73 -7.88 86.08 -54.95

Service Properties Trust Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 86.08 46.17 -293.84 1,948.90 -54.95

Competitive Comparison of Service Properties Trust's Degree of Operating Leverage

For the REIT - Hotel & Motel subindustry, Service Properties Trust'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.


Service Properties Trust's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Service Properties Trust's Degree of Operating Leverage distribution charts can be found below:

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


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Service Properties Trust Degree of Operating Leverage Calculation

Service Properties Trust's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 90.84 (Dec. 2024) / 280.737 (Dec. 2023) - 1 )/( 1896.928 (Dec. 2024) / 1873.863 (Dec. 2023) - 1 )
=-0.6764/0.0123
=-54.95***

* 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.


Service Properties Trust  (NAS:SVC) 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.


Service Properties Trust Degree of Operating Leverage Related Terms

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


Service Properties Trust Business Description

Industry
Traded in Other Exchanges
Address
255 Washington Street, Suite 300, Two Newton Place, Newton, MA, USA, 02458-1634
Service Properties Trust is a real estate investment trust that owns hotel properties. These properties are located in the United States, along with Canada and Puerto Rico. The company operates through its hotel investment unit and net lease investments. The firm derives the majority of its revenue from the hotel real estate investments unit. The hotels are distinguished between their service levels, which include full service, select service, and extended stay; and chain scale, which includes luxury, upper upscale, upscale, upper midscale, and midscale. The hotels are extended stay or upscale. Some of the hotel brands include Courtyard by Marriott, Royal Sonesta, Crowne Plaza Hotels & Resorts, and Hyatt Place.
Executives
Rajan Penkar director C/O TRAVELCENTERS OF AMERICA INC., 24601 CENTER RIDGE ROAD, WESTLAKE OH 44145
Todd W Hargreaves officer: Vice President C/O THE RMR GROUP LLC, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Robert E. Cramer director C/O SERVICE PROPERTIES TRUST, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Laurie B. Burns director C/O SERVICE PROPERTIES TRUST, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Brian E. Donley officer: CFO and Treasurer C/O THE RMR GROUP LLC,, TWO NEWTON PL., 255 WASHINGTON ST., NEWTON MA 02458
Donna D. Fraiche director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
William A. Lamkin director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Adam D. Portnoy director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Bruce M. Gans other: Trustee C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Gerard M Martin director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Barry M. Portnoy director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Arthur G Koumantzelis director C/O REITMANAGEMENT & RESEARCH LLC, 400 CENTRE STREET, NUWTON MA 02458
John L Harrington director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Frank J Bailey director C/O REIT MANAGEMENT & RESEARCH LLC, 400 CENTRE STREET, NEWTON MA 02458
John G. Murray officer: President, Secretary, COO C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458