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GEHC (GE HealthCare Technologies) Degree of Operating Leverage : 8.38 (As of Mar. 2025)


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What is GE HealthCare Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. GE HealthCare Technologies's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 8.38. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

GEHC's Degree of Operating Leverage is ranked worse than
86.97% of 637 companies
in the Healthcare Providers & Services industry
Industry Median: 0.53 vs GEHC: 8.38

GE HealthCare Technologies Degree of Operating Leverage Historical Data

The historical data trend for GE HealthCare Technologies'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.

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GE HealthCare Technologies Degree of Operating Leverage Chart

GE HealthCare Technologies Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 8.58 2.04 -2.53 1.75 10.70

GE HealthCare Technologies Quarterly Data
Dec20 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 1.09 1.17 -1.29 10.70 8.38

Competitive Comparison of GE HealthCare Technologies's Degree of Operating Leverage

For the Health Information Services subindustry, GE HealthCare Technologies'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.


GE HealthCare Technologies's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

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

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


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GE HealthCare Technologies Degree of Operating Leverage Calculation

GE HealthCare Technologies'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
=( 3245 (Mar. 2025) / 2871 (Mar. 2024) - 1 )/( 19798 (Mar. 2025) / 19495 (Mar. 2024) - 1 )
=0.1303/0.0155
=8.38***

* 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.


GE HealthCare Technologies  (NAS:GEHC) 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.


GE HealthCare Technologies Degree of Operating Leverage Related Terms

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GE HealthCare Technologies Business Description

Traded in Other Exchanges
Address
500 West Monroe Street, Chicago, IL, USA, 60661
GE HealthCare Technologies is a leading medical technology firm with leading market share in imaging and ultrasound equipment. The company reports four major segments: imaging (45% of revenue), advanced visualization solutions (26%), patient care solutions (16%), and pharmaceutical diagnostics (13%). The company's sales are geographically diverse, with the United States, EMEA, China, and the rest of the world accounting for 46%, 26%, 12%, and 17% respectively. We estimate approximately half of its revenue is recurring, which consists of servicing (about one third of revenue), pharmaceutical diagnostics (about 10%-15%), and digital solutions (just over 5%).
Executives
Roland Rott officer: CEO, Ultrasound 500 W. MONROE STREET, CHICAGO IL 60661
Kenneth R. Stacherski officer: Ch. Supply Chain & Serv. Ofc. 500 W MONROE, CHICAGO IL 60661
Thomas J. Westrick officer: CEO, Patient Care Solutions 500 W. MONROE STREET, CHICAGO IL 60661
Taha Kass-hout officer: Chief Technology Officer 500 W. MONROE STREET, CHICAGO IL 60661
Jan Makela officer: CEO, Imaging 500 W. MONROE STREET, CHICAGO IL 60661
Frank R Jimenez officer: GC & Corporate Secretary GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 606061
Kevin Michael O'neill officer: CEO, PDx 500 W. MONROE STREET, CHICAGO IL 60661
James Saccaro officer: Chief Financial Officer ONE BAXTER PARKWAY, DEERFIELD IL 60015
Culp H Lawrence Jr director GENERAL ELECTRIC COMPANY, ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
William J Stromberg director 100 E. PRATT STREET, BALTIMORE MD 21202
Yang Watkin Phoebe L. director C/O DOXIMITY, INC., 500 THIRD STREET, SAN FRANCISCO CA 94107
Rodney F Hochman director 21919 30TH DR SE, BOTHELL WA 98021
Tomislav Mihaljevic director ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Lloyd Jr Howell director 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Anne T Madden director C/O HONEYWELL 300 S. TRYON STREET, CHARLOTTE NC 28202