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ATGE (Adtalem Global Education) Degree of Operating Leverage : 5.61 (As of Mar. 2025)


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What is Adtalem Global Education Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Adtalem Global Education's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ATGE's Degree of Operating Leverage is ranked worse than
80.82% of 245 companies
in the Education industry
Industry Median: 0.79 vs ATGE: 5.61

Adtalem Global Education Degree of Operating Leverage Historical Data

The historical data trend for Adtalem Global Education'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.

Adtalem Global Education Degree of Operating Leverage Chart

Adtalem Global Education Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.79 -4.66 -1.28 49.24 3.03

Adtalem Global Education 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 2.64 3.03 4.18 4.55 5.61

Competitive Comparison of Adtalem Global Education's Degree of Operating Leverage

For the Education & Training Services subindustry, Adtalem Global Education'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.


Adtalem Global Education's Degree of Operating Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Adtalem Global Education's Degree of Operating Leverage distribution charts can be found below:

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


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Adtalem Global Education Degree of Operating Leverage Calculation

Adtalem Global Education'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
=( 333.343 (Mar. 2025) / 192.167 (Mar. 2024) - 1 )/( 1741.091 (Mar. 2025) / 1539.386 (Mar. 2024) - 1 )
=0.7347/0.131
=5.61***

* 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.


Adtalem Global Education  (NYSE:ATGE) 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.


Adtalem Global Education Degree of Operating Leverage Related Terms

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Adtalem Global Education Business Description

Traded in Other Exchanges
Address
500 West Monroe Street, Suite 28, Chicago, IL, USA, 60661
Adtalem Global Education Inc is an American for-profit educational company that operates various university and educational programs. The company has three segments namely Chamberlain; Walden; and Medical and Veterinary. It derives maximum revenue from Chamberlain segment.
Executives
Manjunath Gangadharan officer: VP, Chief Accounting Officer 600 WEST CHICAGO AVE., STE 400, CHICAGO IL 60654
Michael W Malafronte director INTERNATIONAL VALUE ADVISERS, LLC, 717 FIFTH AVE, 10TH FLOOR, NEW YORK NY 10022
Donna J Hrinak director C/O AOL LATIN AMERICA, 6600 N. ANDREWS AVE, SUITE 400, FT. LAUDERDALE FL 33309
Michael Betz officer: President, Walden University 500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
William W Burke director 3868 MOCKINGBIRD LN, DALLAS TX 75205
Lisa W Wardell director 5900 RYLAND DRIVE, BETHESDA MD 20817
Maurice Herrera officer: Chief Marketing Officer 500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
Blake Simpson officer: SVP, Chief Comms Officer 500 W. MONROE, SUITE 1300, CHICAGO IL 60661
Lyle Logan director ONE TOWER LANE, OAKBROOK TERRACE IL 60181
Evan Trent officer: SVP, Chief Strat. & Transform 500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
William V Krehbiel director 500 W. MONROE, CHICAGO IL 60661
James Raymond Bartholomew officer: President, DeVry University 2449 MARCY AVENUE, EVANSTON IL 60201
Cheryl James officer: SVP, CHRO 500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
Sharon O'keefe director C/O VOCERA COMMUNICATIONS, INC., 525 RACE STREET, SAN JOSE CA 95126
Georgette D. Kiser director 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505