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DLX (Deluxe) Degree of Operating Leverage : 0.18 (As of Jun. 2024)


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What is Deluxe Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Deluxe's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 0.18. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DLX's Degree of Operating Leverage is ranked better than
56.6% of 1007 companies
in the Media - Diversified industry
Industry Median: 1.03 vs DLX: 0.18

Deluxe Degree of Operating Leverage Historical Data

The historical data trend for Deluxe'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.

Deluxe Degree of Operating Leverage Chart

Deluxe Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -328.06 11.95 13.78 1.85 3.66

Deluxe Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 12.55 6.96 3.66 1.73 0.18

Competitive Comparison of Deluxe's Degree of Operating Leverage

For the Advertising Agencies subindustry, Deluxe'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.


Deluxe's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Deluxe's Degree of Operating Leverage distribution charts can be found below:

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



Deluxe Degree of Operating Leverage Calculation

Deluxe's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 182.189 (Jun. 2024) / 183.487 (Jun. 2023) - 1 )/( 2147.979 (Jun. 2024) / 2236.093 (Jun. 2023) - 1 )
=-0.0071/-0.0394
=0.18***

* 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.


Deluxe  (NYSE:DLX) 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.


Deluxe Degree of Operating Leverage Related Terms

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


Deluxe Business Description

Traded in Other Exchanges
Address
801 South, Marquette Avenue, Minneapolis, MN, USA, 55402-2807
Deluxe Corporation engaged in providing payment solutions. The company operates in 4 segments. Payments includes merchant in-store, online and mobile payment solutions; treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing and paperless treasury management; payroll and disbursement services, including Deluxe Payment Exchange; and fraud and security services. Data Solutions includes data-driven marketing solutions; hosted solutions, including digital engagement, logo design; web hosting and design services. Promotional Solutions includes business forms, accessories, advertising specialties and promotional apparel. Checks includes printed business and personal checks.
Executives
William C Zint officer: SVP, Chief Financial Offier 801 S MARQUETTE AVE, MINNEAPOLIS MN 55402
Barry C Mccarthy director, officer: President and CEO C/O FIRST DATA CORPORATION, FIRST DATA, 225 LIBERTY STREET, NEW YORK NY 10281
Yogaraj Jeyaprakasam officer: Chief Tech. & Digital Officer 801 S MARQUETTE AVE, MINNEAPOLIS MN 55402
Kristopher D Lazzaretti officer: President, Data Solutions 801 S MARQUETTE AVE, MINNEAPOLIS MN 55402
Debra A Bradford officer: President, Merchant Services
Jean L Herrick officer: SVP, CHRO 801 S MARQUETTE AVE, MINNEAPOLIS MN 55402
Chad P Kurth officer: Chief Accounting Officer, PAO 801 S MARQUETTE AVE, MINNEAPOLIS MN 55402
Scott C Bomar officer: SVP, Chief Financial Officer 3680 VICTORIA STREET N, SHOREVIEW MN 55126
Telisa L Yancy director 3680 VICTORIA STREET N, SHOREVIEW MN 55126
Thomas Riccio officer: SVP, Division President 3680 VICTORIA STREET N, SHOREVIEW MN 55126
Paul R Garcia director 214 N TRYON STREET, CHARLOTTE NC 28202
Houwelingen Ronald Van officer: VP, Controller, PAO 3680 VICTORIA STREET N, SHOREVIEW MN 55126
Christopher Lee Thomas officer: SVP, CRO 3680 VICTORIA STREET N, SHOREVIEW MN 55126
William C Cobb director H&R BLOCK, INC., ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Thomas Reddin director 11115 RUSHMORE DR, CHARLOTTE NC 28277