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USM (United States Cellular) Degree of Operating Leverage : 13.60 (As of Mar. 2025)


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What is United States Cellular Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. United States Cellular's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 13.60. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

USM's Degree of Operating Leverage is ranked worse than
83.65% of 367 companies
in the Telecommunication Services industry
Industry Median: 1.47 vs USM: 13.60

United States Cellular Degree of Operating Leverage Historical Data

The historical data trend for United States Cellular'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.

United States Cellular Degree of Operating Leverage Chart

United States Cellular 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 67.20 -1.16 -29.40 -4.84 13.71

United States Cellular 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 -11.05 -13.70 6.75 13.71 13.60

Competitive Comparison of United States Cellular's Degree of Operating Leverage

For the Telecom Services subindustry, United States Cellular'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.


United States Cellular's Degree of Operating Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, United States Cellular's Degree of Operating Leverage distribution charts can be found below:

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


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United States Cellular Degree of Operating Leverage Calculation

United States Cellular'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
=( 146 (Mar. 2025) / 331 (Mar. 2024) - 1 )/( 3711 (Mar. 2025) / 3870 (Mar. 2024) - 1 )
=-0.5589/-0.0411
=13.60***

* 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.


United States Cellular  (NYSE:USM) 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.


United States Cellular Degree of Operating Leverage Related Terms

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


United States Cellular Business Description

Traded in Other Exchanges
Address
8410 West Bryn Mawr, Chicago, IL, USA, 60631
United States Cellular Corp is a regional wireless carrier that serves about 4.4 million customers spread across four major geographic clusters: the Midwest, mid-Atlantic, New England, and the Pacific Northwest. These service territories encompass a total population of about 32 million people. The vast majority of the markets the firm serves are rural or second/third-tier cities, with only the greater Milwaukee and Oklahoma City regions boasting populations greater than 1 million. us Cellular also owns a 5.5% stake in Verizon Wireless' Los Angeles operations and, unlike its wireless carrier peers, owns most of its towers. The firm has agreed to sell its wireless operations and most of its spectrum licenses in a series of transactions with T-Mobile, Verizon, and AT&T.
Executives
Kevin R Lowell officer: EVP, Chief People Officer 8410 W. BRYN MAWR AVE, CHICAGO IL 60631
Michael Irizarry officer: EVP & CTO-Engineering and IS 8410 W BRYN MAWR, CHICAGO IL 60631
Xavier Williams director C/O AMERICAN VIRTUAL CLOUD TECHNOLOGIES, 1720 PEACHTREE ST., SUITE 629, ATLANTA GA 30309
James W Butman director 30 N. LASALLE STREET, STE. 4000, CHICAGO IL 60602
Gregory P Josefowicz director 850 76TH STREET SW, GRAND RAPIDS MI 49518
Deirdre Drake officer: SVP-Chief HR Officer 8410 W. BRYN MAWR AVE, CHICAGO IL 60631
Esteban C Iriarte director 8410 W. BRYN MAWR, CHICAGO IL 60631
Vicki L Villacrez director 30 N. LASALLE STREET, SUITE 4000, CHICAGO IL 60602
Ronald E Daly director
J Samuel Crowley director 8410 WEST BRYN MAWR ST STE 700, CHICAGO IL 60631
Jay Ellison officer: EVP-Operations
Laurent C Therivel director, officer: President and CEO 8410 W. BRYN MAWR STREET, CHICAGO IL 60631
Kenneth R Meyers director, officer: President and CEO
Anita J Kroll officer: Chief Accounting Officer 30 N. LASALLE STREET, SUITE 4000, CHICAGO IL 60602
Steven T Campbell director, officer: EVP-Finance, CFO and Treasurer 8410 W. BRYN MAWR, CHICAGO IL 60631