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KBSR (KBS Real Estate Investment Trust III) Degree of Operating Leverage : 1,172.53 (As of Jun. 2024)


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What is KBS Real Estate Investment Trust III Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. KBS Real Estate Investment Trust III's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 1,172.53. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for KBS Real Estate Investment Trust III's Degree of Operating Leverage or its related term are showing as below:

KBSR's Degree of Operating Leverage is ranked worse than
100% of 699 companies
in the REITs industry
Industry Median: 0.98 vs KBSR: 1172.53

KBS Real Estate Investment Trust III Degree of Operating Leverage Historical Data

The historical data trend for KBS Real Estate Investment Trust III'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.

KBS Real Estate Investment Trust III Degree of Operating Leverage Chart

KBS Real Estate Investment Trust III Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -41.18 4.87 -179.23 55.41 -895.60

KBS Real Estate Investment Trust III 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 58.55 84.37 -895.60 65.19 1,172.53

Competitive Comparison of KBS Real Estate Investment Trust III's Degree of Operating Leverage

For the REIT - Office subindustry, KBS Real Estate Investment Trust III'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.


KBS Real Estate Investment Trust III's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, KBS Real Estate Investment Trust III's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where KBS Real Estate Investment Trust III's Degree of Operating Leverage falls into.



KBS Real Estate Investment Trust III Degree of Operating Leverage Calculation

KBS Real Estate Investment Trust III'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
=( 91.957 (Jun. 2024) / -70.821 (Jun. 2023) - 1 )/( 268.826 (Jun. 2024) / 269.354 (Jun. 2023) - 1 )
=-2.2984/-0.002
=1,172.53***

* 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.


KBS Real Estate Investment Trust III  (OTCPK:KBSR) 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.


KBS Real Estate Investment Trust III Degree of Operating Leverage Related Terms

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


KBS Real Estate Investment Trust III Business Description

Traded in Other Exchanges
N/A
Address
800 Newport Center Drive, Suite 700, Newport Beach, CA, USA, 92660
KBS Real Estate Investment Trust III Inc is a real estate investment trust. The company invests in a diverse portfolio of real estate properties. It holds investments in office properties and mixed-use office/retail properties. The investment objective is to preserve and return stockholders capital contributions and to provide the stockholders with attractive and stable cash distributions.
Executives
Robert Milkovich director 7600 WISCONSIN AVENUE, 11TH FLOOR, BETHESDA MD 20814
Marc Deluca director 7297 HIGHLAND ESTATES PLACE, FALLS CHURCH VA 22043
Ron D. Sturzenegger director 101 CALIFORNIA STREET, SUITE 1750, SAN FRANCISCO CA 94111
Jeffrey A. Dritley director C/O KBS REALTY ADVISORS, 800 NEWPORT CENTER DRIVE, SUITE 700, NEWPORT BEACH CA 92660
Jeff Waldvogel officer: Chief Financial Officer C/O KBS REALTY ADVISORS, 800 NEWPORT CENTER DRIVE, SUITE 700, NEWPORT BEACH CA 92660
Stuart A Gabriel director 155 N. LAKE AVENUE, PASADENA CA 91101
Peter Mcmillan director, officer: Executive Vice President
Barbara R Cambon director 17140 BERNARDO CENTER DRIVE, SUITE 195, SAN DIEGO CA 92128
Hank Adler director 6 HUTTON CENTRE DRIVE, SUITE 400, SANTA ANA CA 92707
David E Snyder officer: Chief Financial Officer 610 NEWPORT CENTER DRIVE, SUITE 1150, NEWPORT BEACH CA 92660
Schreiber Charles J Jr director, officer: Chief Executive Officer 620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Peter M Bren officer: President 620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Stacie K Yamane officer: Chief Accounting Officer 620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Keith D Hall officer: Executive Vice President 620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660

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