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DGX (Quest Diagnostics) Degree of Operating Leverage : 1.15 (As of Mar. 2025)


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What is Quest Diagnostics Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Quest Diagnostics's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.15. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DGX's Degree of Operating Leverage is ranked worse than
58.65% of 208 companies
in the Medical Diagnostics & Research industry
Industry Median: 0.445 vs DGX: 1.15

Quest Diagnostics Degree of Operating Leverage Historical Data

The historical data trend for Quest Diagnostics'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.

Quest Diagnostics Degree of Operating Leverage Chart

Quest Diagnostics 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 2.86 2.39 5.93 1.02 1.25

Quest Diagnostics 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 -2.16 -5.33 5.26 1.25 1.15

Competitive Comparison of Quest Diagnostics's Degree of Operating Leverage

For the Diagnostics & Research subindustry, Quest Diagnostics'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.


Quest Diagnostics's Degree of Operating Leverage Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Quest Diagnostics's Degree of Operating Leverage distribution charts can be found below:

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


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Quest Diagnostics Degree of Operating Leverage Calculation

Quest Diagnostics'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
=( 1434 (Mar. 2025) / 1294 (Mar. 2024) - 1 )/( 10158 (Mar. 2025) / 9287 (Mar. 2024) - 1 )
=0.1082/0.0938
=1.15***

* 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.


Quest Diagnostics  (NYSE:DGX) 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.


Quest Diagnostics Degree of Operating Leverage Related Terms

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


Quest Diagnostics Business Description

Traded in Other Exchanges
Address
500 Plaza Drive, Secaucus, NJ, USA, 07094
Quest Diagnostics Inc is a leading independent provider of diagnostic testing, information, and services in the us. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk-assessment services, and information technology solutions.
Executives
J. E. Davis officer: SVP, Operations C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Karthik Kuppusamy officer: SVP, Clinical Solutions 500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS INC, SECAUCUS NJ 07094
Michael E Prevoznik officer: Corp VP, Legal & Compliance C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Catherine T. Doherty officer: SVP, Physician Services Bus. C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Patrick Plewman officer: SVP for Diagnostic Services 500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS INC, SECAUCUS NJ 07094
Mark E Delaney officer: SVP & Chief Commercial Officer 500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS INC, SECAUCUS NJ 07094
Vicky B Gregg director 1 CAMERON HILL CIRCLE, CHATTANOOGA TN 37402
Michael J Deppe officer: VP, Corp. Controller & CAO 500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS, SECAUCUS NJ 07094
Luis Diaz director C/O JOUNCE THERAPEUTICS, INC., 780 MEMORIAL DRIVE, CAMBRIDGE MA 02138
Timothy M Ring director C/O C.R BARD INC, 730 CENTRAL AVE, MURRAY HILL NJ 07974
Mark A Gardner officer: SVP of Molecular Gen & Oncol 500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS INC, SECAUCUS NJ 07094
Samer Abdul Samad officer: Executive Vice President & CFO 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Stephen H Rusckowski director, officer: President and CEO C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Tracey Doi director C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Gail R Wilensky director C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094