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Vitalhub (FRA:6OVA) Degree of Operating Leverage : -15.05 (As of Sep. 2024)


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What is Vitalhub Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Vitalhub's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -15.05. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRA:6OVA's Degree of Operating Leverage is ranked better than
90.95% of 641 companies
in the Healthcare Providers & Services industry
Industry Median: 0.65 vs FRA:6OVA: -15.05

Vitalhub Degree of Operating Leverage Historical Data

The historical data trend for Vitalhub'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.

Vitalhub Degree of Operating Leverage Chart

Vitalhub Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only 9.49 2.30 -0.31 -3.14 8.62

Vitalhub Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 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 1.15 0.97 8.62 -37.47 -15.05

Competitive Comparison of Vitalhub's Degree of Operating Leverage

For the Health Information Services subindustry, Vitalhub'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.


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

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

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



Vitalhub Degree of Operating Leverage Calculation

Vitalhub'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
=( 3.888 (Sep. 2024) / 1.846 (Sep. 2023) - 1 )/( 31.286 (Sep. 2024) / 34.689 (Sep. 2023) - 1 )
=1.1062/-0.0981
=-11.28***

* 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.


Vitalhub  (FRA:6OVA) 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.


Vitalhub Degree of Operating Leverage Related Terms

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Vitalhub Business Description

Traded in Other Exchanges
Address
480 University Avenue, Suite 1001, Toronto, ON, CAN, M5G 1V2
Vitalhub Corp provides technology to Health and Human Service providers including Hospitals, Regional Health Authorities, Mental Health, Long Term Care, Home Health, and Community and Social Services. Vitalhub solutions span the categories of Electronic Health Records (EHR), Case Management, Care Coordination, Patient Flow and Operational Visibility, and Mobile Apps. It operates in one segment for its operations related to healthcare information systems in the mental health, long-term care, community health service, and hospital sectors. Geographically it's available in Canada, the United Kingdom, Australia, the USA, Western Asia, and the Rest of the world, and the majority of the revenue comes from the United Kingdom.

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