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MMS (Maximus) Degree of Operating Leverage : 8.07 (As of Sep. 2024)


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What is Maximus Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Maximus's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 8.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MMS's Degree of Operating Leverage is ranked worse than
84.91% of 1014 companies
in the Business Services industry
Industry Median: 0.99 vs MMS: 8.07

Maximus Degree of Operating Leverage Historical Data

The historical data trend for Maximus'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.

Maximus Degree of Operating Leverage Chart

Maximus Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.49 1.65 -2.14 -1.50 8.07

Maximus Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -1.50 0.56 3.74 6.01 8.07

Competitive Comparison of Maximus's Degree of Operating Leverage

For the Specialty Business Services subindustry, Maximus'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.


Maximus's Degree of Operating Leverage Distribution in the Business Services Industry

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

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



Maximus Degree of Operating Leverage Calculation

Maximus's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 488.949 (Sep. 2024) / 294.431 (Sep. 2023) - 1 )/( 5306.197 (Sep. 2024) / 4904.728 (Sep. 2023) - 1 )
=0.6607/0.0819
=8.07***

* 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.


Maximus  (NYSE:MMS) 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.


Maximus Degree of Operating Leverage Related Terms

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


Maximus Business Description

Industry
Traded in Other Exchanges
Address
1600 Tysons Boulevard, McLean, VA, USA, 22102
Maximus Inc designs, develops, and delivers programs, enabling people to access vital government services. It translates health and human services public policy into operating models that achieve outcomes for governments at scale. The company covers a broad array of services, including the operation of large health insurance eligibility and enrollment programs; clinical services, including assessments, appeals, and independent medical reviews; and technology services. The company operates through the following segments; U.S. Federal Services, U.S. Services, and Outside the U.S. A majority of its revenue is derived from the U.S. Federal Services segment which engages with various U.S. federal government agencies to deliver clinical services, maintenance services, and technology solutions.
Executives
Michelle F. Link officer: Chief Human Resources Officer 1891 METRO CENTER DRIVE, RESTON VA 20190
Gayathri Rajan director 1891 METRO CENTER DRIVE, RESTON X1 20190
Michael J. Warren director C/O WALKER & DUNLOP, INC., 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
David Mutryn officer: Chief Financial Officer 1891 METRO CENTER DRIVE, RESTON VA 20190
Teresa Weipert officer: General Mgr US Federal Segment 1891 METRO CENTER DRIVE, RESTON VA 20190
Ilene R. Baylinson officer: Group General Manager 1891 METRO CENTER DRIVE, RESTON VA 20190
Theresa D Golinvaux officer: Principal Accounting Officer 9300 LEE HIGHWAY, FAIRFAX VA 20131
John Thomas Martinez officer: Secretary and General Counsel 1600 TYSONS BLVD, #1400, MCLEAN VA 22102
Bruce Caswell other: Group President - Human Svcs 11419 SUNSET HILLS ROAD, RESTON VA 20190-5207
Raymond B Ruddy director C/O MAXIMUS INC, 11419 SUNSET HILLS ROAD, RESTON VA 20190
David Francis officer: General Counsel C/O MAXIMUS INC, 11419 SUNSET HILLS RD, RESTON VA 20190
John J Haley director 901 N GLEBE ROAD, ARLINGTON VA 22203
Richard A Montoni director, officer: CEO and Director C/O MAXIMUS INC, 11419 SUNSET HILLS RD, RESTON VA 20190
Richard John Nadeau officer: Chief Financial Officer 1300 WILSON BLVD., SUITE 400, ARLINGTON VA 22209
Peter Pond director