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GEO (The GEO Group) Degree of Operating Leverage : -78.06 (As of Mar. 2025)


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What is The GEO Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. The GEO Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -78.06. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

GEO's Degree of Operating Leverage is ranked better than
96.9% of 1000 companies
in the Business Services industry
Industry Median: 0.985 vs GEO: -78.06

The GEO Group Degree of Operating Leverage Historical Data

The historical data trend for The GEO Group'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.

The GEO Group Degree of Operating Leverage Chart

The GEO Group 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 4.40 -7.14 4.20 -6.29 -81.72

The GEO Group 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 14.91 57.80 674.94 -81.72 -78.06

Competitive Comparison of The GEO Group's Degree of Operating Leverage

For the Security & Protection Services subindustry, The GEO Group'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.


The GEO Group's Degree of Operating Leverage Distribution in the Business Services Industry

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

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


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The GEO Group Degree of Operating Leverage Calculation

The GEO Group'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
=( 210.202 (Mar. 2025) / 344.645 (Mar. 2024) - 1 )/( 2422.677 (Mar. 2025) / 2410.63 (Mar. 2024) - 1 )
=-0.3901/0.005
=-78.06***

* 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.


The GEO Group  (NYSE:GEO) 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.


The GEO Group Degree of Operating Leverage Related Terms

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


The GEO Group Business Description

Traded in Other Exchanges
Address
4955 Technology Way, Boca Raton, FL, USA, 33431
The GEO Group Inc specializes in detention facilities and community reentry centers. It operates in four segments: U.S. Secure Services, which mainly encompasses U.S.-based secure services business; Electronic Monitoring and Supervision Services, which conducts its services in the United States, represents services provided to adults for monitoring services and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants; Reentry Services conducts its services in the United States represents services provided to adults for residential and non-residential treatment, educational and community-based programs, pre-release and half-way house programs; and International Services.
Executives
Shayn P. March officer: VP of Finance and Treasurer C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Scott Michael Kernan director C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Ronald A. Brack officer: VP, CAO and Controller C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
George C Zoley director, officer: Chairman & CEO C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
James H. Black officer: SVP & Pres, Secure Services 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Christopher D. Ryan officer: Senior VP, Human Resources 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Lindsay L. Koren director 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Matthew Albence officer: Senior VP, Client Relations 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Andrew N Shapiro director 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Thomas C. Bartzokis director 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Terry P. Mayotte director C/O TREAN INSURANCE GROUP, INC., 150 LAKE STREET WEST, WAYZATA MN 55391
Jack Brewer director 6200 EXCELSIOR BLVD., SUITE 104, ST. LOUIS PARK MN 55416
Anne N Foreman director C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Richard H Glanton director C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Duane Helkowski director 4955 TECHNOLOGY WAY, BOCA RATON FL 33431