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SHC (Sotera Health Co) Degree of Operating Leverage : -2.10 (As of Mar. 2025)


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What is Sotera Health Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sotera Health Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SHC's Degree of Operating Leverage is ranked better than
77.29% of 207 companies
in the Medical Diagnostics & Research industry
Industry Median: 0.45 vs SHC: -2.10

Sotera Health Co Degree of Operating Leverage Historical Data

The historical data trend for Sotera Health Co'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.

Sotera Health Co Degree of Operating Leverage Chart

Sotera Health Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 2.44 3.01 -21.31 -55.63 2.44

Sotera Health Co 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 -27.08 -19.37 -18.80 2.44 -2.10

Competitive Comparison of Sotera Health Co's Degree of Operating Leverage

For the Diagnostics & Research subindustry, Sotera Health Co'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.


Sotera Health Co's Degree of Operating Leverage Distribution in the Medical Diagnostics & Research Industry

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

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


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Sotera Health Co Degree of Operating Leverage Calculation

Sotera Health Co'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
=( 251.833 (Mar. 2025) / 267.418 (Mar. 2024) - 1 )/( 1106.788 (Mar. 2025) / 1076.874 (Mar. 2024) - 1 )
=-0.0583/0.0278
=-2.10***

* 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.


Sotera Health Co  (NAS:SHC) 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.


Sotera Health Co Degree of Operating Leverage Related Terms

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


Sotera Health Co Business Description

Traded in Other Exchanges
N/A
Address
9100 South Hills Boulevard, Suite 300, Broadview Heights, OH, USA, 44147
Sotera Health Co provides sterilization, analytical lab testing, and advisory services to help ensure that medical, pharmaceutical and food products are safe for healthcare practitioners, patients, and consumers. The company operates in three segments: Sterigenics, Nordion, and Nelson Labs. Sterigenics provides outsourced terminal sterilization and irradiation services for medical device, pharmaceutical, food safety, and applications; Nordion provides Co-60 and gamma irradiators, which are the key components to the gamma sterilization process; and Nelson Labs provides outsourced microbiological and analytical chemistry testing for the medical device and pharmaceutical industries. Its geographical segments are the United States, Canada, Europe and other regions.
Executives
Warburg Pincus & Co. director, 10 percent owner 450 LEXINGTON AVENUE, NEW YORK, NY NY 100173147
Gtcr Fund Xi/a Lp director, 10 percent owner 300 NORTH LASALLE STREET, SUITE 5600, CHICAGO IL 60654
Ann R. Klee director 30 ISABELLA ST., PITTSBURGH PA 15212
Michael P Rutz officer: President of Sterigenics 8755 WEST HIGGINS ROAD, SUITE 500, CHICAGO IL 60631
Petras Michael B. Jr. director, officer: Chairman & CEO 9100 SOUTH HILLS BLVD, SUITE 300, BROADVIEW HEIGHTS OH 44147
Jonathan M. Lyons officer: Sr. Vice President, CFO 9100 SOUTH HILLS BLVD., SUITE 300, BROADVIEW HEIGHTS OH 44147
David E. Wheadon director C/O ASSERTIO THERAPEUTICS, INC., 100 SOUTH SAUNDERS ROAD, SUITE 300, LAKE FOREST IL 60045
Robert Brown Knauss director C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Alexander Dimitrief officer: SVP, General Counsel and Sec. GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
Michael F Biehl officer: Interim CFO 5885 LANDBROOK DRIVE SUITE 205, CLEVELAND OH 44124
Terry Hammons officer: SVP, GC and Secretary C/O SIMPSON MANUFACTURING CO., INC., 5956 W LAS POSITAS BLVD, PLEASANTON CA 94588
Wp Xi Partners, L.p. director, 10 percent owner C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, 450 LEXINGTON AVENUE NY 10017
Matthew J Klaben officer: SVP, GC and Secretary ONE INFINITY CORPORATE CENTRE DRIVE, SUITE 300, GARFIELD HEIGHTS OH 44125
Stephanie Geveda director 450 LEXINGTON AVENUE, C/O WARBURG PINCUS LLC, NEW YORK NY 10017
Sean Laurence Cunningham director 300 N. LASALLE SUITE 5600, CHICAGO IL 60654