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ODP (The ODP) Degree of Operating Leverage : 4.84 (As of Dec. 2024)


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What is The ODP Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. The ODP's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 4.84. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ODP's Degree of Operating Leverage is ranked worse than
74.86% of 1090 companies
in the Retail - Cyclical industry
Industry Median: 1.26 vs ODP: 4.84

The ODP Degree of Operating Leverage Historical Data

The historical data trend for The ODP'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.

The ODP Degree of Operating Leverage Chart

The ODP 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 11.98 -1,389.66 106.65 -1.12 4.84

The ODP Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -1.12 5.60 7.49 7.32 4.84

Competitive Comparison of The ODP's Degree of Operating Leverage

For the Specialty Retail subindustry, The ODP'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.


The ODP's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The ODP's Degree of Operating Leverage distribution charts can be found below:

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


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The ODP Degree of Operating Leverage Calculation

The ODP's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 169 (Dec. 2024) / 349 (Dec. 2023) - 1 )/( 6990 (Dec. 2024) / 7823 (Dec. 2023) - 1 )
=-0.5158/-0.1065
=4.84***

* 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.


The ODP  (NAS:ODP) 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.


The ODP Degree of Operating Leverage Related Terms

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


The ODP Business Description

Traded in Other Exchanges
Address
6600 North Military Trail, Boca Raton, FL, USA, 33496
The ODP Corp operates an integrated B2B distribution platform with divisions focusing on various sectors: ODP Business Solutions serves small to enterprise-level companies with office supplies, technology, furniture, and services. Office Depot Division caters to retail consumers and small businesses through retail locations and eCommerce platforms, offering office supplies, technology, and business services. Veyer Division specializes in supply chain, distribution, and procurement services for both internal and third-party customers, with a focus on global operations. Varis Division offers a tech-enabled B2B indirect procurement marketplace, providing a seamless buying experience and advanced spend management tools. Revenue primarily stems from the Veyer division.
Executives
Wendy Lee Schoppert director 6105 TRENTON LANE NORTH, MINNEAPOLIS MN 55442
Diego Anthony Scaglione officer: EVP & Chief Financial Officer 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Kevin Moffitt officer: SVP, Chief Retail Officer 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Gerry P Smith director, officer: Chief Executive Officer 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
John Gannfors officer: EVP-Transformation & Strategic, other: Sourcing 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Zoe Maloney officer: EVP, Chief HR Officer 6600 N MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Max Hood officer: SVP & Chief Accounting Officer 6600 NORTH MILITARY TRAIL, BOCA RATON, FL FL 33496
Sarah E. Hlavinka officer: EVP-Chief Legal Officer & Secy 2111 N MOLTER RD, LIBERTY LAKE WA 99019
David C Centrella officer: EVP - Business Solutions Div 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
N. David Bleisch officer: EVP-Chief Legal Officer & Secy C/O THE ADT CORPORATION, 1501 YAMATO ROAD, BOCA RATON FL 33431
Stephen M. Mohan officer: EVP - Business Solutions Div 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Haas Richard A. Jr officer: SVP & Chief Accounting Officer 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Marcus Dunlop director 330 MADISON AVENUE, FLOOR 23, NEW YORK NY 10017
Terry Leeper officer: EVP, Chief Technology Officer 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Shashank Samant director 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496