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CYH (Community Health Systems) Degree of Operating Leverage : -38.45 (As of Mar. 2025)


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What is Community Health Systems Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Community Health Systems's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -38.45. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CYH's Degree of Operating Leverage is ranked better than
94.68% of 639 companies
in the Healthcare Providers & Services industry
Industry Median: 0.63 vs CYH: -38.45

Community Health Systems Degree of Operating Leverage Historical Data

The historical data trend for Community Health Systems'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.

Community Health Systems Degree of Operating Leverage Chart

Community Health Systems 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 -12.81 -0.96 10.17 -6.19 -38.32

Community Health Systems 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 -3.17 -12.38 -49.40 -38.32 -38.45

Competitive Comparison of Community Health Systems's Degree of Operating Leverage

For the Medical Care Facilities subindustry, Community Health Systems'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.


Community Health Systems's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Community Health Systems's Degree of Operating Leverage distribution charts can be found below:

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


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Community Health Systems Degree of Operating Leverage Calculation

Community Health Systems'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
=( 633 (Mar. 2025) / 1059 (Mar. 2024) - 1 )/( 12654 (Mar. 2025) / 12523 (Mar. 2024) - 1 )
=-0.4023/0.0105
=-38.45***

* 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.


Community Health Systems  (NYSE:CYH) 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.


Community Health Systems Degree of Operating Leverage Related Terms

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


Community Health Systems Business Description

Traded in Other Exchanges
N/A
Address
4000 Meridian Boulevard, Franklin, TN, USA, 37067
Community Health Systems Inc is a publicly owned hospital operator in the United States. The company also owns four home health agencies and provides management and consulting services to independent hospitals. The firm derives revenue through a broad range of general and specialized hospital healthcare services and outpatient services.
Executives
Wayne T Smith director, officer: Executive Officer and Director 500 WEST MAIN STREET, LOUISVILLE KY 40202
Charles J Cova officer: Regional President 4000 MERIDIAN BOULEVARD, FRANKLIN TN 37067
Burgess Ronald L Jr director 4000 MERIDIAN BOULEVARD, FRANKLIN TN 37067
Ely James S. Iii director 4000 MERIDIAN BLVD, FRANKLIN TN 37067
Susan W Brooks director 200 EAST JACKSON ST, MUNCIE IN 47305
Justin D Pitt officer: EVP and General Counsel 4000 MERIDIAN BOULEVARD, FRANKLIN TN 37067
Joseph Arthur Hastings director 1573 MALLORY LANE, SUITE 100, BRENTWOOD TN 37027
John A Fry director C/O DELAWARE INVESTMENTS, 2005 MARKET ST. 34TH FL., PHILADELPHIA PA 19103
William Norris Jennings director 509 ALTA GATE ROAD, LOUISVILLE KY 40206
Chad A Campbell officer: Regional President 4000 MERIDIAN BLVD, FRANKLIN TN 37067
David E Nicely officer: Regional President 4000 MERIDIAN BOULEVARD, FRANKLIN TN 37067
Kevin A Stockton officer: Regional President 4000 MERIDIAN BOULEVARD, FRANKLIN TN 37067
Mark B Medley officer: Regional President 4000 MERIDIAN BOULEVARD, FRANKLIN TN 37067
Austen D Mason officer: Regional President 4000 MERIDIAN BOULEVARD, FRANKLIN TN 37067
Tian Qiao Chen 10 percent owner 2735 SAND HILL ROAD, #140, MENLO PARK CA 94025