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UHS (Universal Health Services) Degree of Operating Leverage : 3.94 (As of Mar. 2025)


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What is Universal Health Services Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Universal Health Services's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.94. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

UHS's Degree of Operating Leverage is ranked worse than
76.29% of 641 companies
in the Healthcare Providers & Services industry
Industry Median: 0.56 vs UHS: 3.94

Universal Health Services Degree of Operating Leverage Historical Data

The historical data trend for Universal Health Services'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.

Universal Health Services Degree of Operating Leverage Chart

Universal Health Services 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 6.63 0.15 -4.65 2.29 4.35

Universal Health Services 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 2.78 3.68 4.28 4.35 3.94

Competitive Comparison of Universal Health Services's Degree of Operating Leverage

For the Medical Care Facilities subindustry, Universal Health Services'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.


Universal Health Services's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

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

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


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Universal Health Services Degree of Operating Leverage Calculation

Universal Health Services'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
=( 1752.117 (Mar. 2025) / 1266.759 (Mar. 2024) - 1 )/( 16084.073 (Mar. 2025) / 14658.04 (Mar. 2024) - 1 )
=0.3831/0.0973
=3.94***

* 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.


Universal Health Services  (NYSE:UHS) 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.


Universal Health Services Degree of Operating Leverage Related Terms

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


Universal Health Services Business Description

Traded in Other Exchanges
Address
367 South Gulph Road, Universal Corporate Center, P.O. Box 61558, King Of Prussia, PA, USA, 19406-0958
Universal Health Services Inc owns and operates acute care hospitals, behavior health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. The firm operates in two segments: Acute Care Hospital Services and Behavioral Health Services. The company generates the majority of its revenue from the Acute Care Hospital Services segment. The Acute Care Hospital Services segment includes the firm's acute care hospitals, surgical hospitals, and surgery and oncology centers.
Executives
Maria Ruderman Singer director 245 PARK AVENUE, NEW YORK NY 10167
Sussman Elliot J Md Mba director
Warren J. Nimetz director 1301 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Nina Chen-langenmayr director 211 N. 13TH STREET, 4TH FLOOR, PHILADELPHIA PA 19107
Eileen C. Mcdonnell director 600 DRESHER ROAD, HORSHAM PA 19044
Matthew Jay Peterson officer: Executive Vice President, UHS 2824 87TH TRAIL NORTH, MINNEAPOLIS MN 55443
Steve Filton officer: Senior Vice President & CFO 367 SOUTH GULPH ROAD, KING PRUSSIA PA 19406
Marc D Miller director, officer: President 367 SOUTH GULPH ROAD, KING OF PRUSSIA PA 19406
Lawrence S. Gibbs director 599 LEXINGTON AVE # 20, NEW YORK NY 10022
Edward H Sim officer: Executive Vice President 367 SOUTH GULPH ROAD, KING OF PRUSSIA PA 19406
Robert H Hotz director C/O MIKASA, 20633 S FORDYCE AVENUE, LONG BEACH CA 90810
Marvin G. Pember officer: Senior Vice President 367 SOUTH GULPH ROAD, KING OF PRUSSIA PA 19406
Debra K Osteen officer: Senior Vice President 367 SOUTH GULPH ROAD, KING PRUSSIA PA 19406
John H Herrell director 367 SOUTH GULPH ROAD, KING PRUSSIA PA 19406
Anthony Pantaleoni director FULBRIGHT & JAWORSKI LLP, 666 FIFTH AVE, NEW YORK NY 10103