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LTC (LTC Properties) Degree of Operating Leverage : -0.08 (As of Mar. 2025)


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What is LTC Properties Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. LTC Properties's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.08. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LTC's Degree of Operating Leverage is ranked better than
67.17% of 734 companies
in the REITs industry
Industry Median: 1.205 vs LTC: -0.08

LTC Properties Degree of Operating Leverage Historical Data

The historical data trend for LTC Properties'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.

LTC Properties Degree of Operating Leverage Chart

LTC Properties 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 -0.89 13.22 4.54 0.39 -0.37

LTC Properties 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 -1.91 4.65 2.98 -0.37 -0.08

Competitive Comparison of LTC Properties's Degree of Operating Leverage

For the REIT - Healthcare Facilities subindustry, LTC Properties'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.


LTC Properties's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, LTC Properties's Degree of Operating Leverage distribution charts can be found below:

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


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LTC Properties Degree of Operating Leverage Calculation

LTC Properties'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
=( 129.615 (Mar. 2025) / 130.04 (Mar. 2024) - 1 )/( 207.512 (Mar. 2025) / 199.11 (Mar. 2024) - 1 )
=-0.0033/0.0422
=-0.08***

* 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.


LTC Properties  (NYSE:LTC) 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.


LTC Properties Degree of Operating Leverage Related Terms

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


LTC Properties Business Description

Industry
Traded in Other Exchanges
Address
3011 Townsgate Road, Suite 220, Westlake Village, CA, USA, 91361
LTC Properties Inc is a healthcare facility real estate investment trust. The company operates one segment that works to invest in seniors housing and healthcare facilities through mortgage loans, property lease transactions, and other investments. Its real estate investments includes different types of properties such as Independent living communities, Assisted living communities, Memory care communities, Skilled nursing centers and other types of properties.
Executives
David L Gruber director 2829 TOWNSGATE RD, STE 350, WESTLAKE VILLAGE CA 91361
Clint B Malin officer: VP & CIO 22917 PACIFIC COAST HWY, SUITE 350, MALIBU CA 90265
Timothy Triche director 2358 NORTH VERMONT AVE, LOS ANGELES CA 90027
Boyd W Hendrickson director 22917 PACIFIC COAST HWY, SUITE 350, MALIBU CA 90265
Pamela Shelley-kessler officer: VP & Controller 300 ESPLANADE DR #1860, OXNARD CA 93036
Wendy Simpson director, officer: CFO & Treasurer 300 ESPLANADE DR #1860, OXNARD CA 93036
Caroline Wong officer: VP, Controller & Treasurer 2829 TOWNSGATE RD, SUITE 350, WESTLAKE VILLAGE CA 91361
Cheng Cornelia director 2829 TOWNSGATE RD, STE 350, STE 350, WESTLAKE VILLAGE CA 91361
James Pieczynski director PACWEST BANCORP, 9701 WILSHIRE BOULEVARD, SUITE 700, BEVERLY HILLS CA 90212
Brent P. Chappell officer: SVP, Inv. & Portfolio Mgmt 2829 TOWNSGATE RD #350, WESTLAKE VILLAGE CA 91361
Edmund King director 258 VINEYARD LANE, MESQUITE NV 89027
Thomas Andrew Stokes officer: VP, Marketing/Strat. Planning 31365 OAK CREST DRIVE, SUITE 200, WESTLAKE VILLAGE CA 91361
Peter G Lyew officer: VP, Director of Taxes 31365 OAK CREST DRVE, SUITE 200, WESTLAKE VILLAGE CA 91361
Andre C Dimitriadis director, officer: CEO and President 9955 SE WASHINTON, SUITE 201, PORTLAND OR 97216
Devra G Shapiro director C/O IPC THE HOSPITALIST COMPANY, INC., 4605 LANKERSHIM BLVD SUITE 617, NORTH HOLLYWOOD CA 91602