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LTH (Life Time Group Holdings) Degree of Operating Leverage : 3.82 (As of Mar. 2025)


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What is Life Time Group Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Life Time Group Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

LTH's Degree of Operating Leverage is ranked worse than
71.32% of 809 companies
in the Travel & Leisure industry
Industry Median: 1.25 vs LTH: 3.82

Life Time Group Holdings Degree of Operating Leverage Historical Data

The historical data trend for Life Time Group Holdings'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.

Life Time Group Holdings Degree of Operating Leverage Chart

Life Time Group Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 6.26 0.32 -3.20 4.79 3.22

Life Time Group Holdings 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 1.17 1.56 3.07 3.22 3.82

Competitive Comparison of Life Time Group Holdings's Degree of Operating Leverage

For the Leisure subindustry, Life Time Group Holdings'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.


Life Time Group Holdings's Degree of Operating Leverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Life Time Group Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Life Time Group Holdings Degree of Operating Leverage Calculation

Life Time Group Holdings'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
=( 393.096 (Mar. 2025) / 229.883 (Mar. 2024) - 1 )/( 2730.319 (Mar. 2025) / 2302.459 (Mar. 2024) - 1 )
=0.71/0.1858
=3.82***

* 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.


Life Time Group Holdings  (NYSE:LTH) 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.


Life Time Group Holdings Degree of Operating Leverage Related Terms

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Life Time Group Holdings Business Description

Traded in Other Exchanges
N/A
Address
2902 Corporate Place, Chanhassen, MN, USA, 55317
Life Time Group Holdings Inc is a lifestyle and leisure brand offering health, fitness, and wellness experiences to a community. It is engaged in designing, building, and operating distinctive and large, multi-use sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in residential locations of metropolitan areas in the United States and Canada.
Executives
Erik Weaver officer: SVP & Controller C/O ORTHO-CLINICAL DIAGNOSTICS, INC., 1001 ROUTE 202, RARITAN NJ 08869
Tpg Gp A, Llc 10 percent owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Bahram Akradi director, 10 percent owner, officer: Founder & CEO 2902 CORPORATE PLACE, CHANHASSEN MN 55317
Ritadhwaja Jebens Singh officer: EVP & Chief Digital Officer C/O LIFE TIME GROUP HOLDINGS, INC., 2902 CORPORATE PLACE, CHANHASSEN MN 55317
Parham Javaheri officer: See Remarks C/O LIFE TIME GROUP HOLDINGS, INC., 2902 CORPORATE PLACE, CHANHASSEN MN 55317
Partners Group Private Equity (master Fund), Llc 10 percent owner 1114 AVENUE OF THE AMERICAS, 37TH FLOOR, NEW YORK NY 10036
Green Ltf Holdings Ii Lp director, 10 percent owner 11111 SANTA MONICA BLVD., SUITE 2000, LOS ANGELES CA 90025
John Kristofer Galashan director, 10 percent owner LEONARD, GREEN & PARTNERS, 11111 SANTA MONICA BLVD., SUITE 2000, LOS ANGELES CA 90025
Robert P. Houghton officer: EVP & CHIEF FINANCIAL OFFICER 2902 CORPORATE PLACE, CHANHASSEN MN 55317
Teacher Retirement System Of Texas other: Member of a group that is 10% 1000 RED RIVER STREET, AUSTIN TX 78701
Donna Coallier director 2902 CORPORATE PLACE, CHANHASSEN MN 55317
Jon Winkelried 10 percent owner C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Stuart G. Lasher director 4931 NEW PROVIDENCE, TAMPA FL 33629
Simon Property Group Inc /de/ 10 percent owner 225 WEST WASHINGTON STREET, INDIANAPOLIS IN 46204-3438
Msd Capital L P 10 percent owner 1 VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017-5407