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TNET (Trinet Group) Degree of Operating Leverage : -43.21 (As of Mar. 2025)


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What is Trinet Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Trinet Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -43.21. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TNET's Degree of Operating Leverage is ranked better than
95.17% of 1014 companies
in the Business Services industry
Industry Median: 1.05 vs TNET: -43.21

Trinet Group Degree of Operating Leverage Historical Data

The historical data trend for Trinet 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.

Trinet Group Degree of Operating Leverage Chart

Trinet 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 6.48 1.75 1.61 2.06 -30.27

Trinet 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 -1.03 -2.50 -6.79 -30.27 -43.21

Competitive Comparison of Trinet Group's Degree of Operating Leverage

For the Staffing & Employment Services subindustry, Trinet 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.


Trinet Group's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Trinet Group's Degree of Operating Leverage distribution charts can be found below:

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


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Trinet Group Degree of Operating Leverage Calculation

Trinet 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
=( 277 (Mar. 2025) / 493 (Mar. 2024) - 1 )/( 5081 (Mar. 2025) / 5030 (Mar. 2024) - 1 )
=-0.4381/0.0101
=-43.21***

* 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.


Trinet Group  (NYSE:TNET) 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.


Trinet Group Degree of Operating Leverage Related Terms

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


Trinet Group Business Description

Traded in Other Exchanges
Address
One Park Place, Suite 600, Dublin, CA, USA, 94568
Trinet Group Inc outsourced payroll and human capital management solutions for small and midsize businesses via a professional employer organization model. Under the PEO model, TriNet enters a co-employment arrangement and acts as the employer of record for administrative and regulatory purposes for clients' employees, known as worksite employees. Clients leverage the scale and expertise of TriNet to access competitive employee benefits, share employment risk liability, access compliance support, and outsource mission-critical day-to-day HR functions such as payroll and tax administration. Following the acquisition of Zenefits and Clarus R+D in 2022, TriNet derives the minority of its revenue from self-service HCM software and R&D tax credit services.
Executives
Paul Edward Chamberlain director C/O VEEVA SYSTEMS INC., 4280 HACIENDA DRIVE, PLEASANTON CA 94588
Kelly L Tuminelli officer: EVP & CHIEF FINANCIAL OFFICER TRINET GROUP, INC., ONE PARK PLACE, STE 600, DUBLIN CA 94568
Samantha Wellington officer: SVP, CLO & SECRETARY ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Alexander G. Warren officer: SVP, CHIEF REVENUE OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Burton M. Goldfield director, officer: PRESIDENT, CEO and DIRECTOR ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Wayne B Lowell director 3061 ZANKER ROAD, SAN JOSE CA 95134
Ralph A. Clark director C/O SHOTSPOTTER, INC., 7979 GATEWAY BLVD., STE. 210, NEWARK CA 94560
L.p. Agi-t, director, 10 percent owner 40 MORRIS AVENUE, BRYN MAWR PA 19010
Jonathan D. Lee officer: PRINCIPAL ACCOUNTING OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Jayaraman Venkataramani officer: CHIEF DIGITAL & INNOV OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
H Raymond Bingham director 2655 SEELY AVE, SAN JOSE CA 95134
Martin Babinec director TRINET GROUP INC., ONE PARK PLACE., STE. 600, DUBLIN CA 94568
Olivier Kohler officer: SVP, CHIEF OPERATING OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Myrna Soto director ONE ENERGY PLAZA, JACKSON MI 49201
Katherine August-dewilde director ONE PARK PLACE, SUITE 600, DUBLIN CA 94568