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TCI (Transcontinental Realty Investors) Degree of Operating Leverage : -3.89 (As of Mar. 2025)


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What is Transcontinental Realty Investors Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Transcontinental Realty Investors's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -3.89. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TCI's Degree of Operating Leverage is ranked better than
83.29% of 1700 companies
in the Real Estate industry
Industry Median: 0.91 vs TCI: -3.89

Transcontinental Realty Investors Degree of Operating Leverage Historical Data

The historical data trend for Transcontinental Realty Investors'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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Transcontinental Realty Investors Degree of Operating Leverage Chart

Transcontinental Realty Investors 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 87.38 0.48 -176.56 -2.55 2.53

Transcontinental Realty Investors 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 -3.78 -7.57 -123.81 2.53 -3.89

Competitive Comparison of Transcontinental Realty Investors's Degree of Operating Leverage

For the Real Estate Services subindustry, Transcontinental Realty Investors'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.


Transcontinental Realty Investors's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Transcontinental Realty Investors's Degree of Operating Leverage distribution charts can be found below:

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


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Transcontinental Realty Investors Degree of Operating Leverage Calculation

Transcontinental Realty Investors'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
=( 18.886 (Mar. 2025) / 15.795 (Mar. 2024) - 1 )/( 44.911 (Mar. 2025) / 47.293 (Mar. 2024) - 1 )
=0.1957/-0.0504
=-3.89***

* 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.


Transcontinental Realty Investors  (NYSE:TCI) 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.


Transcontinental Realty Investors Degree of Operating Leverage Related Terms

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Transcontinental Realty Investors Business Description

Traded in Other Exchanges
N/A
Address
1603 Lyndon B Johnson Freeway, Suite 800, Dallas, TX, USA, 75234
Transcontinental Realty Investors Inc is a fully integrated externally managed real estate company. It operates multifamily and commercial properties throughout the southern United States and also invests in mortgage notes receivable and in the land that is either held for appreciation or development. The company has two business segments: the acquisition, development, ownership, and management of multifamily properties which include the rental of apartments (Residential Segment) and other tenant services, including parking and storage space rental, and the acquisition, development, ownership, and management of commercial properties which are office properties(Commercial Segment). It includes the rental of office space and other tenant services, including parking and storage space rental.
Executives
Louis J Corna officer: EVP, GC/Tax Counsel& Secretary 1800 VALLEY VIEW LANE, DALLAS TX 75234
Erik L Johnson officer: Ex. Vice President and CFO
Daniel J Moos officer: President and CEO 1603 LBJ FREEWAY, SUITE 800, DALLAS TX 75234
American Realty Investors Inc 10 percent owner 1603 LBJ FREEWAY, SUITE 800, DALLAS TX 75234
Transcontinental Realty Acquisition Corp 10 percent owner 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Eqk Holdings Inc 10 percent owner 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Martha C Stephens director 248 SIMMONS, DRIVE, COPPELL TX 75019
Rl S Lemke director, officer: Vice President 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Basic Capital Management Inc 10 percent owner
David R. Fletcher officer: EVP & CFO C/O SOC TELEMED, INC., 1768 BUSINESS CENTER DRIVE, SUITE 100, RESTON VA 20190
Gene S Bertcher officer: EVP & Chief Acctg. Officer 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Reagan K Vidal officer: Ex VP Mg Dir Capital Markets 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Alfred Crozier officer: EVP 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Canon James D Iii officer: Exec. V.P.-Multi-Family Const. 1800 VALLEY VIEW LANE, SUITE 300, DALLAS TX 75234
Transcontinental Realty Investors Inc officer: Exec.V.P.-Multi-Family Const 1603 LBJ FREEWAY, SUITE 800, DALLAS TX 75234