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UPBD (Upbound Group) Degree of Operating Leverage : 1.19 (As of Mar. 2025)


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What is Upbound Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Upbound Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.19. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

UPBD's Degree of Operating Leverage is ranked worse than
57.38% of 2661 companies
in the Software industry
Industry Median: 0.8 vs UPBD: 1.19

Upbound Group Degree of Operating Leverage Historical Data

The historical data trend for Upbound 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.

Upbound Group Degree of Operating Leverage Chart

Upbound 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 -1.21 0.18 5.93 -1.92 8.91

Upbound 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 -215.98 23.66 9.96 8.91 1.19

Competitive Comparison of Upbound Group's Degree of Operating Leverage

For the Software - Application subindustry, Upbound 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.


Upbound Group's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Upbound Group's Degree of Operating Leverage distribution charts can be found below:

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


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Upbound Group Degree of Operating Leverage Calculation

Upbound 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
=( 288.87 (Mar. 2025) / 263.543 (Mar. 2024) - 1 )/( 4400.96 (Mar. 2025) / 4072.319 (Mar. 2024) - 1 )
=0.0961/0.0807
=1.19***

* 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.


Upbound Group  (NAS:UPBD) 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.


Upbound Group Degree of Operating Leverage Related Terms

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


Upbound Group Business Description

Industry
Traded in Other Exchanges
Address
5501 Headquarters Drive, Plano, TX, USA, 75024
Upbound Group Inc is an omnichannel platform company committed to elevating financial opportunity for all through inclusive, and technology-driven financial solutions that address the evolving needs and aspirations of consumers. It has three operating segments; The Rent-A-Center Business segment operates lease-to-own stores, the Acima segment offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer, and also offers the lease-to-own transaction through virtual offering solutions across e-commerce, digital, and mobile channels, Mexico segment offers lease-to-own stores in Mexico. The franchising segment offers the sale of rental merchandise to its franchisees. The company derives a majority of its revenue from the Acima segment.
Executives
Fahmi Karam officer: EVP, Chief Financial Officer 5501 HEADQUARTERS DRIVE, PLANO TX 75024
Jeffrey J Brown other: See Footnote 1 19900 MACARTHUR BLVD, SUITE 570, IRVINE CA 92612
Anthony J Blasquez officer: EVP, Operations 5501 HEADQUARTERS DRIVE, PLANO TX 75024
Transient C Taylor officer: EVP, Human Resources 5501 HEADQUARTERS DRIVE, PLANO TX 75024
Tyler Montrone officer: EVP, Acima 5501 HEADQUARTERS DRIVE, PLANO TX 75024
Sudeep Gautam officer: EVP, Chief Tech & Digital Off 5501 HEADQUARTERS DRIVE, PLANO TX 75024
Aaron R Allred officer: EVP, Acima 3 DAWN HILL DR, SANDY UT 84092
Mitchell E Fadel other: See Footnote 1 5501 HEADQUARTERS DRIVE, PLANO TX 75024
Jen You director 5501 HEADQUARTERS DRIVE, PLANO TX 75024
Christopher B. Hetrick other: See Footnote 1 610 NEWPORT CENTER DRIVE, SUITE 250, NEWPORT BEACH CA 92660
Maureen B Short officer: CFO 5501 HEADQUARTERS DR, PLANO TX 75024
Ann L Davids officer: EVP, Chief Marketing Officer 5501 HEADQUARTERS DRIVE, PLANO TX 75024
Catherine M Skula officer: EVP, Franchising 5501 HEADQUARTERS DR, C/O RENT-A-CENTER, INC., PLANO TX 75024
Brinson Caleb Silver director C/O RENT-A-CENTER, INC., 5501 HEADQUARTERS DRIVE, PLANO TX 75024
Harold G Lewis director 5501 HEADQUARTERS DRIVE, PLANO TX 75024