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HCSG (Healthcare Services Group) Degree of Operating Leverage : -2.42 (As of Mar. 2025)


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What is Healthcare Services Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Healthcare Services Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.42. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HCSG's Degree of Operating Leverage is ranked better than
74.73% of 637 companies
in the Healthcare Providers & Services industry
Industry Median: 0.53 vs HCSG: -2.42

Healthcare Services Group Degree of Operating Leverage Historical Data

The historical data trend for Healthcare Services 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.

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Healthcare Services Group Degree of Operating Leverage Chart

Healthcare Services 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 -10.85 7.25 -9.85 -25.30 -0.95

Healthcare Services 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 -195.35 -0.35 35.67 -0.95 -2.42

Competitive Comparison of Healthcare Services Group's Degree of Operating Leverage

For the Medical Care Facilities subindustry, Healthcare Services 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.


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

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

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


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Healthcare Services Group Degree of Operating Leverage Calculation

Healthcare Services 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
=( 60.358 (Mar. 2025) / 66.316 (Mar. 2024) - 1 )/( 1739.911 (Mar. 2025) / 1677.592 (Mar. 2024) - 1 )
=-0.0898/0.0371
=-2.42***

* 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.


Healthcare Services Group  (NAS:HCSG) 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.


Healthcare Services Group Degree of Operating Leverage Related Terms

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


Healthcare Services Group Business Description

Traded in Other Exchanges
Address
3220 Tillman Drive, Suite 300, Bensalem, PA, USA, 19020
Healthcare Services Group Inc is a provider of housekeeping and facility management services to the healthcare industry. The company operates two business segments, both contributing roughly equally to the company's revenue: Housekeeping, laundry, linen, and other services; and Dietary department services. Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, bed linen, and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. Its clients are nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.
Executives
Andrew M Brophy officer: Acting Accounting Officer 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Kurt Jr Simmons director 3220 TILLMAN DRIVE, BENSALEM PA 19020
John Briggs director 3220 TILLMAN DRIVE SUITE 300, BENSALEM PA 19020
Patrick J Orr officer: EVP & Chief Revenue Officer 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Andrew Kush officer: Executive Vice President 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Dino D Ottaviano director 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Michael E Mcbryan director, officer: Executive Vice President 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Robert L Frome director 3220 TILLMAN DRIVE SUITE 300, BENSALEM PA 19020
Laura K Grant director 3220 TILLMAN, DRIVE, BENSALEM PA 19020
Robert J Moss director 3220 TILLMAN DRIVE SUITE 300, BENSALEM PA 19020
Daniela Castagnino director 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Diane S Casey director 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
John Christopher Shea officer: Chief Financial Officer 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
David Hurlock officer: Executive Vice President & COO 3220 TILLMAN DRIVE, SUITE 300, BENSALEM PA 19020
Daniel P Mccartney director, officer: Chief Executive Officer 3220 TILLMAN DR, SUITE 300, BENSALEM PA 19020