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DVA (DaVita) Degree of Operating Leverage : 4.33 (As of Sep. 2024)


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What is DaVita Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. DaVita's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 4.33. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DVA's Degree of Operating Leverage is ranked worse than
79.41% of 641 companies
in the Healthcare Providers & Services industry
Industry Median: 0.65 vs DVA: 4.33

DaVita Degree of Operating Leverage Historical Data

The historical data trend for DaVita'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.

DaVita Degree of Operating Leverage Chart

DaVita Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -46.87 -0.72 18.94 347.61 4.18

DaVita Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -0.67 4.18 5.71 6.27 4.33

Competitive Comparison of DaVita's Degree of Operating Leverage

For the Medical Care Facilities subindustry, DaVita'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.


DaVita's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

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

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



DaVita Degree of Operating Leverage Calculation

DaVita's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1833.665 (Sep. 2024) / 1438.843 (Sep. 2023) - 1 )/( 12666.614 (Sep. 2024) / 11911.288 (Sep. 2023) - 1 )
=0.2744/0.0634
=4.33***

* 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.


DaVita  (NYSE:DVA) 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.


DaVita Degree of Operating Leverage Related Terms

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


DaVita Business Description

Traded in Other Exchanges
Address
2000 16th Street, Denver, CO, USA, 80202
DaVita is the largest provider of dialysis services in the United States, boasting market share that eclipses 35% when measured by both patients and clinics. The firm operates over 3,000 facilities worldwide, mostly in the us, and treats about 250,000 patients globally each year. Government payers dominate us dialysis reimbursement. DaVita receives about two thirds of us sales at government (primarily Medicare) reimbursement rates, with the remainder coming from commercial insurers. While commercial insurers represent only about 10% of the us patients treated, they represent nearly all of the profits generated by DaVita in the us dialysis business.
Executives
Javier Rodriguez officer: Chief Executive Officer, DKC 601 HAWAII ST., EL SEGUNDO CA 90245
Joel Ackerman officer: Chief Financial Officer COVENTRY HEALTH CARE, INC., 6705 ROCKLEDGE DR SUITE 900, BETHESDA MD 20817
Michael David Staffieri officer: Chief Operating Officer, DKC 2000 16TH STREET, DENVER CO 80202
Kathleen Alyce Waters officer: Chief Legal Officer C/O DAVITA INC., 2000 16TH STREET, DENVER CO 80202
Barbara J Desoer director CITIGROUP INC., 388 GREENWICH STREET, 17TH FLOOR, NEW YORK NY 10013
James O Hearty officer: Chief Compliance Officer 2000 16TH STREET, DENVER CO 80202
Christopher Michael Berry officer: Chief Accounting Officer C/O SONDER HOLDINGS INC., 101 15TH ST., SAN FRANCISCO CA 94103
Wendy Lee Schoppert director 6105 TRENTON LANE NORTH, MINNEAPOLIS MN 55442
Phyllis R Yale director
Charles Berg director, officer: Executive Chair, DMG 48 MONROE TURNPIKE, TRUMBULL CT 06611
John M Nehra director 1119 ST PAUL ST, BALTIMORE MD 21202
Adam H Schechter director 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Jason M. Hollar director 3333 BEVERLY ROAD, HOFFMAN ESTATES IL 60179
Paula A Price director ONE CVS DRIVE, WOONSOCKET RI 02895
Pamela M Arway director 601 HAWAII ST., EL SEGUNDO CA 90245