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CAH (Cardinal Health) Degree of Operating Leverage : 144.42 (As of Mar. 2025)


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What is Cardinal Health Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Cardinal Health's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 144.42. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CAH's Degree of Operating Leverage is ranked worse than
98.17% of 109 companies
in the Medical Distribution industry
Industry Median: 0.86 vs CAH: 144.42

Cardinal Health Degree of Operating Leverage Historical Data

The historical data trend for Cardinal Health'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.

Cardinal Health Degree of Operating Leverage Chart

Cardinal Health 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 -53.71 -18.30 -19.52 -16.66 6.34

Cardinal Health 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 6.57 6.34 32.16 19.49 144.42

Competitive Comparison of Cardinal Health's Degree of Operating Leverage

For the Medical Distribution subindustry, Cardinal Health'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.


Cardinal Health's Degree of Operating Leverage Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Cardinal Health's Degree of Operating Leverage distribution charts can be found below:

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


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Cardinal Health Degree of Operating Leverage Calculation

Cardinal Health'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
=( 2258 (Mar. 2025) / 1004 (Mar. 2024) - 1 )/( 222286 (Mar. 2025) / 220380 (Mar. 2024) - 1 )
=1.249/0.0086
=144.42***

* 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.


Cardinal Health  (NYSE:CAH) 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.


Cardinal Health Degree of Operating Leverage Related Terms

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


Cardinal Health Business Description

Address
7000 Cardinal Place, Dublin, OH, USA, 43017
Cardinal Health is one of three leading pharmaceutical wholesalers in the us, engaged in sourcing and distributing of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. Cardinal, Cencora, and McKesson hold well over 90% of the us pharmaceutical wholesale industry. Cardinal Health also supplies medical-surgical products and equipment to healthcare facilities in North America, Europe, and Asia.
Executives
Mary C. Scherer officer: Chief Accounting Officer 6026 LUDWIG STREET, POWELL OH 43065
Jessica L Mayer officer: Chief Legal/Compliance Officer 7000 CARDINAL PLACE, DUBLIN OH 43017
Ola M Snow officer: Chief Human Resources Officer 7000 CARDINAL PLACE, DUBLIN OH 43017
Stephen M Mason officer: CEO, Medical Segment 7000 CARDINAL PLACE, DUBLIN OH 43017
Jason M. Hollar officer: Chief Financial Officer 3333 BEVERLY ROAD, HOFFMAN ESTATES IL 60179
Aaron E Alt officer: Chief Financial Officer 3001 COLORADO BLVD., DENTON TX 76210
Michelle D. Greene officer: Chief Information Officer 1141 N. OLD WORLD 3RD STREET, UNIT # 2414, MILWAUKEE WI 53203
Deborah Weitzman officer: CEO, Pharmaceutical Segment 600 WEST 22ND STREET, SUITE 300, OAK BROOK IL 60523
Michelle Brennan director 1855 S. GRANT STREET, SAN MATEO CA 94402
Sujatha Chandrasekaran director 77 HOT METAL STREET, PITTSBURGH PA 15203
Christine Mundkur director
Steven Barg director ELLIOTT MANAGEMENT CORPORATION, 40 WEST 57TH STREET, NEW YORK NY 10019
Patricia M English officer: Chief Accounting Officer 7000 CARDINAL PLACE, DUBLIN OH 43017
Sheri H. Edison director 1069 STATE ROUTE 46 EAST, BATESVILLE IN 47006
John H Weiland director C/O C.R BARD INC, 730 CENTRAL AVE, MURRAY HILL NJ 07974