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CXW (CoreCivic) Degree of Operating Leverage : 26.87 (As of Mar. 2025)


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What is CoreCivic Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. CoreCivic's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 26.87. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CXW's Degree of Operating Leverage is ranked worse than
91.97% of 1009 companies
in the Business Services industry
Industry Median: 1.01 vs CXW: 26.87

CoreCivic Degree of Operating Leverage Historical Data

The historical data trend for CoreCivic'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.

CoreCivic Degree of Operating Leverage Chart

CoreCivic 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 12.75 -8.95 -47.03 -11.71 -1.63

CoreCivic 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 -7.30 -5.53 0.74 -1.63 26.87

Competitive Comparison of CoreCivic's Degree of Operating Leverage

For the Security & Protection Services subindustry, CoreCivic'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.


CoreCivic's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, CoreCivic's Degree of Operating Leverage distribution charts can be found below:

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


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CoreCivic Degree of Operating Leverage Calculation

CoreCivic'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
=( 179.043 (Mar. 2025) / 156.742 (Mar. 2024) - 1 )/( 1949.587 (Mar. 2025) / 1939.319 (Mar. 2024) - 1 )
=0.1423/0.0053
=26.87***

* 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.


CoreCivic  (NYSE:CXW) 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.


CoreCivic Degree of Operating Leverage Related Terms

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


CoreCivic Business Description

Traded in Other Exchanges
Address
5501 Virginia Way, Suite 110, Brentwood, TN, USA, 37027
CoreCivic Inc is an owner and operator of private prisons and detention centers in the United States. It operates in three segments: Safety, Community, and Properties. The Community segment owns and operates residential reentry centers. The Properties segment owns properties for lease to third parties and government agencies. The vast majority of the company's revenue comes from the CoreCivic Safety segment which consists of correctional and detention facilities that are owned, or controlled via a long-term lease, and managed by the company, as well as those correctional and detention facilities owned by third parties but managed by CoreCivic.
Executives
Carter, Cole G. officer: SVP, General Counsel, Secretar 10 BURTON HILLS BLVD., NASHVILLE TN 37215
David K Churchill officer: Chief Human Resources 10 BURTON HILLS BLVD, NASHVILLE TN 37215
Stacia Hylton director 6850 VERSAR CENTER STE 420, SPRINGFIELD VA 22151
Thurgood Jr Marshall director 3000 K STREET N W, SUITE 300, WASHINGTON DC 20007-5116
Anthony L Grande officer: Senior VP, Customer Relations CORRECTIONS CORPORATION OF AMERICA, 10 BURTON HILLS BOULEVARD, NASHVILLE TN 37215
Mark A Emkes director 425 WINTER ROAD, DELAWARE OH 43015
Harley G. Lappin officer: Chief Corrections Officer 10 BURTON HILLS BLVD, NASHVILLE TN 37215
Devin Ignatius Murphy director 104 MAIN STREET, SOUTHPORT CT 06890
Robert J Dennis director GENESCO INC., 1415 MURFREESBORO ROAD, NASHVILLE TN 37217
David Garfinkle officer: Vice President, Finance
Anne L Mariucci director 6539 N 31ST PLACE, PHOENIX AZ 85016
Damon T Hininger officer: Senior VP, Customer Relations CORRECTIONS CORPORATION OF AMERICA, 10 BURTON HILLS BOULEVARD, NASHVILLE TN 37215
Lucibeth Mayberry officer: SVP, Real Estate 10 BURTON HILLS BLVD, NASHVILLE TN 37215
Patrick D. Swindle, officer: EVP, Chief Corrections Officer 10 BURTON HILLS BLVD., NASHVILLE TN 37215
Prann John R Jr director