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RDNT (RadNet) Degree of Operating Leverage : -2.05 (As of Mar. 2025)


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What is RadNet Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. RadNet's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.05. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RDNT's Degree of Operating Leverage is ranked better than
76.44% of 208 companies
in the Medical Diagnostics & Research industry
Industry Median: 0.445 vs RDNT: -2.05

RadNet Degree of Operating Leverage Historical Data

The historical data trend for RadNet'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.

RadNet Degree of Operating Leverage Chart

RadNet 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 5.90 6.13 -1.48 0.77 1.57

RadNet 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 5.03 5.37 0.96 1.57 -2.05

Competitive Comparison of RadNet's Degree of Operating Leverage

For the Diagnostics & Research subindustry, RadNet'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.


RadNet's Degree of Operating Leverage Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, RadNet's Degree of Operating Leverage distribution charts can be found below:

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


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RadNet Degree of Operating Leverage Calculation

RadNet'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
=( 89.002 (Mar. 2025) / 120.532 (Mar. 2024) - 1 )/( 1869.356 (Mar. 2025) / 1657.773 (Mar. 2024) - 1 )
=-0.2616/0.1276
=-2.05***

* 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.


RadNet  (NAS:RDNT) 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.


RadNet Degree of Operating Leverage Related Terms

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


RadNet Business Description

Traded in Other Exchanges
Address
1510 Cotner Avenue, Los Angeles, CA, USA, 90025
RadNet Inc is a national provider of diagnostic imaging services that operates in two business segments: Imaging Center segment and Digital Health segment. The Imaging Center segment provides physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders. Services include magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, mammography, ultrasound, diagnostic radiology (X-ray), and fluoroscopy. The Digital Health segment develops and deploys clinical applications to enhance the interpretation of medical images and improve patient outcomes with an emphasis on brain, breast, prostate, and pulmonary diagnostics.
Executives
Gregory Sorensen director, officer: EVP Chief Science Officer C/O DFB HEALTHCARE ACQUISITIONS CORP, 780 THIRD AVENUE, NEW YORK NY 10017
Stephen M Forthuber officer: Executive Vice President 3600 JP MORGAN CHASE TOWER, 2200 ROSS AVENUE, DALLAS TX 75201-2776
Lawrence L Levitt director 2934 1/2 BEVERLY GLEN CIRCLE #325, LOS ANGELES CA 90077
Norman R Hames director, officer: Vice President
David L Swartz director 1510 COTNER AVENUE, LOS ANGELES CA 90025
David Jeffrey Katz officer: EVP and General Counsel 1510 COTNER AVE, LOS ANGELES CA 90025
Ranjan Jayanathan officer: Chief Information Officer 13388 HUNT RIDGE ROAD, ELLICOTT CITY MD 21042
Michael N Murdock officer: Executive Vice President 3600 JP MORGAN CHASE TOWER, 2200 ROSS AVENUE, DALLAS TX 752012776
Mital Patel officer: Executive Vice President 1510 COTNER AVENUE, LOS ANGELES CA 90025
Gregory E. Spurlock director 4116 E. NORTHRIDGE CIRCLE, MESA AZ 85215-9807
Mark Stolper director 150 COTNER AVENUE, LOS ANGELES CA 90025
Christine Nayoma Gordon director 3081 PANAMA AVE., CARMICHAEL CA 95608
Ruth Louisa Villigerwilson director, officer: Senior Vice President 3700 WALNUT AVENUE, LONG BEACH CA 90801
John V Crues director 1510 COTNER AVE, LOS ANGELES CA 90025
Laura Pastre Jacobs director 10154 BRIDLEVALE DRIVE, LOS ANGELES CA 90064