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DLHC (DLH Holdings) Degree of Operating Leverage : -3.06 (As of Mar. 2025)


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What is DLH Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. DLH Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -3.06. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DLHC's Degree of Operating Leverage is ranked better than
80.92% of 1001 companies
in the Business Services industry
Industry Median: 0.99 vs DLHC: -3.06

DLH Holdings Degree of Operating Leverage Historical Data

The historical data trend for DLH Holdings'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.

DLH Holdings Degree of Operating Leverage Chart

DLH Holdings Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.41 1.57 1.63 11.04 10.02

DLH Holdings 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 -0.41 -0.95 10.02 -8.52 -3.06

Competitive Comparison of DLH Holdings's Degree of Operating Leverage

For the Specialty Business Services subindustry, DLH Holdings'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.


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

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

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


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DLH Holdings Degree of Operating Leverage Calculation

DLH Holdings'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
=( 21.268 (Mar. 2025) / 17.815 (Mar. 2024) - 1 )/( 377.074 (Mar. 2025) / 402.585 (Mar. 2024) - 1 )
=0.1938/-0.0634
=-3.06***

* 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.


DLH Holdings  (NAS:DLHC) 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.


DLH Holdings Degree of Operating Leverage Related Terms

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


DLH Holdings Business Description

Traded in Other Exchanges
Address
3565 Piedmont Road, Building 3, Suite 700, Atlanta, GA, USA, 30305
DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of Veteran Affairs. The company is engaged in public health, performance evaluation, and health operations to solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, analytics, cloud-based applications, telehealth systems, and others.
Executives
Kathryn M. Johnbull officer: Chief Financial Officer 1776 PEACHTREE STREET, NW, SUITE 300S, ATLANTA GA 30309
Zachary Parker director, officer: CEO and President TEAMSTAFF, INC., 1 EXECUTIVE DRIVE, SUITE 130, SOMERSET NJ 08873
Jeanine M. Christian officer: Pres. Social&Scientific Sys 523 PICCADILLY ROAD, TOWNSON MD 21204
Wynnefield Partners Small Cap Value Lp 10 percent owner 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Judith L Bjornaas director 12015 LEE JACKSON MEMORIAL HWY., MANTECH INTERNATIONAL CORPORATION, FAIRFAX VA 22033
Jacqueline S. Everett officer: Chief Growth Officer 4602 QUARTZ ROCK CT., CHANTILLY VA 20151
Frederick Gerald Wasserman director 4 NOBADEER DRIVE, PENNINGTON NJ 08534
Galeel Maliek Ferebee officer: Chief Human Resources Officer 2659 WINTER MORNING WAY, OLNEY MD 20832
Stephen Zelkowicz director C/O SUMMER INFANT, INC., 1275 PARK EAST DRIVE, WOONSOCKET RI 02895
James P Allen director C/O GRC INTERNATIONAL INC, 1900 GALLOWS RD, VIENNA VA 22182
Kevin Wilson officer: President, DLH Solutions 3525 HIGHWAY 81 S., TEAMSTAFF GOVERNMENT SOLUTIONS, INC., LOGANVILLE GA 30052
Nelson Obus 10 percent owner
Martin J Delaney director 37 OVERLOOK TRAIL, NEWARK NJ 07950
Wynnefield Capital, Inc. Profit Sharing Plan 10 percent owner 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Joshua Landes 10 percent owner