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Radius Residential Care (NZSE:RAD) Degree of Operating Leverage : -0.59 (As of Mar. 2025)


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What is Radius Residential Care Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Radius Residential Care's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.59. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NZSE:RAD's Degree of Operating Leverage is ranked better than
64.53% of 640 companies
in the Healthcare Providers & Services industry
Industry Median: 0.505 vs NZSE:RAD: -0.59

Radius Residential Care Degree of Operating Leverage Historical Data

The historical data trend for Radius Residential Care'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.

Radius Residential Care Degree of Operating Leverage Chart

Radius Residential Care Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial - 35.09 -2.28 -95.94 -0.59

Radius Residential Care Semi-Annual Data
Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.28 -1.22 -95.94 -14.89 -0.59

Competitive Comparison of Radius Residential Care's Degree of Operating Leverage

For the Medical Care Facilities subindustry, Radius Residential Care'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.


Radius Residential Care's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

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

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


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Radius Residential Care Degree of Operating Leverage Calculation

Radius Residential Care'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
=( 16.693 (Mar. 2025) / 19.236 (Mar. 2024) - 1 )/( 177.297 (Mar. 2025) / 144.704 (Mar. 2024) - 1 )
=-0.1322/0.2252
=-0.59***

* 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.


Radius Residential Care  (NZSE:RAD) 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.


Radius Residential Care Degree of Operating Leverage Related Terms

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Radius Residential Care Business Description

Traded in Other Exchanges
N/A
Address
56 Parnell Road, Level 4, Parnell, Auckland, NTL, NZL, 1052
Radius Residential Care Ltd is a health and aged care provider for elderly and disabled people. The company provides residential care, hospital care, dementia care, respite care, and palliative care. The company operates in one segment, the provision of aged care in New Zealand. Also, the company provides Young Disabled Care services, for those under 65 who require assistance with self-care, mobility, and/or communication.

Radius Residential Care Headlines

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