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UNF (UniFirst) Degree of Operating Leverage : 5.10 (As of Feb. 2025)


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What is UniFirst Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. UniFirst's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 5.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

UNF's Degree of Operating Leverage is ranked worse than
79.56% of 1003 companies
in the Business Services industry
Industry Median: 0.95 vs UNF: 5.10

UniFirst Degree of Operating Leverage Historical Data

The historical data trend for UniFirst'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.

UniFirst Degree of Operating Leverage Chart

UniFirst Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 88.61 10.94 -3.28 -0.05 4.30

UniFirst Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 1.42 3.19 4.30 4.41 5.10

Competitive Comparison of UniFirst's Degree of Operating Leverage

For the Specialty Business Services subindustry, UniFirst'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.


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

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

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


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UniFirst Degree of Operating Leverage Calculation

UniFirst's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 189.243 (Feb. 2025) / 150.555 (Feb. 2024) - 1 )/( 2450.322 (Feb. 2025) / 2332.794 (Feb. 2024) - 1 )
=0.257/0.0504
=5.10***

* 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.


UniFirst  (NYSE:UNF) 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.


UniFirst Degree of Operating Leverage Related Terms

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


UniFirst Business Description

Traded in Other Exchanges
Address
68 Jonspin Road, Wilmington, MA, USA, 01887
UniFirst Corp provides workplace uniforms, protective clothing, and other workplace products and services to businesses in the United States, Canada, and Europe. The U.S. and Canadian Rental and Cleaning segment that accounts for the majority of the company engages in sales rents and sells clothing and non-garment items, and offers a cleaning service that delivers clean uniforms when it picks up dirty or contaminated ones. Manufacturing segment designs and manufactures uniforms and non-garment items. Specialty garments rental and cleaning segment provides specialty garments, non-garments, and cleaning services for nuclear and classroom applications. The First Aid segment provides safety supplies and pill packaging. The Corporate segment consists of various associated costs.
Executives
David Martin Katz officer: VP of Sales and Marketing 68 JONSPIN ROAD, WILMINGTON MA 01887
William Masters Ross officer: Senior VP of Operations C/O UNIFIRST CORPORATION, 68 JONSPIN ROAD, WILMINGTON MA 01887
David A Difillippo officer: Senior VP of Operations
The Ronald D Croatti Trust - 1993 10 percent owner C/O CAROL CROATTI, 21 JEFFERSON DRIVE, LONDONDERRY NH 03053
Steven S Sintros officer: VP of Finance and CFO 68 JONSPIN RD., WILMINGTON MA 01888
Shane O'connor officer: Senior VP and CFO 68 JONSPIN ROAD, WILMINGTON MA 01887
Michael Iandoli director 68 JONSPIN RD, WILMINGTON MA 01887
Michael A Croatti officer: Senior VP of Operations C/O UNIFIRST CORPORATION, 68 JONSPIN ROAD, WILMINGTON MA 01887
Cecelia Levenstein 10 percent owner 68 JONSPIN ROAD, WILMINGTON MA 01887
Matthew Croatti 10 percent owner C/O UNIFIRST CORPORATION, 68 JONSPIN ROAD, WILMINGTON MA 01887
Sergio A Pupkin director C/O SEALED AIR CORPORATION, 2415 CASCADE POINTE BOULEVARD, CHARLOTTE NC 28208
Joseph M Nowicki director C/O BEACON ROOFING SUPPLY, INC., 505 HUNTMAR PARK DRIVE SUITE 300, HERNDON VA 20170
Cynthia Croatti director, 10 percent owner, officer: Executive VP and Treasurer 68 JONSPIN ROAD, WILMINGTON DC 01887
Carol Croatti 10 percent owner 21 JEFFERSON DRIVE, LONDONDERRY NH 03053
Kathleen M Camilli director