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Global Health Clinics (STU:L00) Degree of Operating Leverage : 0.79 (As of Jan. 2025)


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What is Global Health Clinics Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Global Health Clinics's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 0.79. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STU:L00's Degree of Operating Leverage is ranked worse than
51.68% of 950 companies
in the Drug Manufacturers industry
Industry Median: 0.64 vs STU:L00: 0.79

Global Health Clinics Degree of Operating Leverage Historical Data

The historical data trend for Global Health Clinics'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.

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Global Health Clinics Degree of Operating Leverage Chart

Global Health Clinics Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.22 -11.23 2.32 -0.57 1.87

Global Health Clinics Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 0.32 1.40 1.87 1.08 0.79

Competitive Comparison of Global Health Clinics's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Global Health Clinics'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.


Global Health Clinics's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Global Health Clinics's Degree of Operating Leverage distribution charts can be found below:

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


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Global Health Clinics Degree of Operating Leverage Calculation

Global Health Clinics's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.683 (Jan. 2025) / -0.806 (Jan. 2024) - 1 )/( 0.049 (Jan. 2025) / 0.061 (Jan. 2024) - 1 )
=-0.1526/-0.1967
=0.78***

* 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.


Global Health Clinics  (STU:L00) 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.


Global Health Clinics Degree of Operating Leverage Related Terms

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Global Health Clinics Business Description

Traded in Other Exchanges
Address
837 West Hastings Street, Suite 400, Vancouver, BC, CAN, V6C 3N6
Global Health Clinics Ltd engages in the cannabis industry and operates medical clinics which guide patients through the process of becoming legal users of marijuana and also engages in developing psilocybin products for research and their potential usage for pharmaceutical purposes. The company operates in two operating segments namely the operation of medical clinics to guide patients to become legal users of marijuana and the development of psilocybin products for research and potential usage for pharmaceutical purposes. The company derives its key revenue from Medical Clinics for legal users of Marijuana.

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