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UNH (UnitedHealth Group) Degree of Operating Leverage : 3.52 (As of Mar. 2025)


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What is UnitedHealth Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. UnitedHealth Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.52. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

UNH's Degree of Operating Leverage is ranked worse than
90.48% of 21 companies
in the Healthcare Plans industry
Industry Median: 0.66 vs UNH: 3.52

UnitedHealth Group Degree of Operating Leverage Historical Data

The historical data trend for UnitedHealth Group'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.

UnitedHealth Group Degree of Operating Leverage Chart

UnitedHealth Group 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 2.23 0.59 1.47 0.94 -3.36

UnitedHealth Group 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 -1.16 -2.10 -2.59 -3.36 3.52

Competitive Comparison of UnitedHealth Group's Degree of Operating Leverage

For the Healthcare Plans subindustry, UnitedHealth Group'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.


UnitedHealth Group's Degree of Operating Leverage Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, UnitedHealth Group's Degree of Operating Leverage distribution charts can be found below:

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


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UnitedHealth Group Degree of Operating Leverage Calculation

UnitedHealth Group'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
=( 32236 (Mar. 2025) / 25117 (Mar. 2024) - 1 )/( 410057 (Mar. 2025) / 379487 (Mar. 2024) - 1 )
=0.2834/0.0806
=3.52***

* 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.


UnitedHealth Group  (NYSE:UNH) 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.


UnitedHealth Group Degree of Operating Leverage Related Terms

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


UnitedHealth Group Business Description

Address
1 Health Drive, Eden Prairie, MN, USA, 55344
UnitedHealth Group is one of the largest private health insurers and provides medical benefits to about 51 million members globally, including 1 million outside the US as of December 2024. As a leader in employer-sponsored, self-directed, and government-backed insurance plans, UnitedHealth has obtained massive scale in medical insurance. Along with its insurance assets, UnitedHealth's Optum franchises help create a healthcare services colossus that spans everything from pharmaceutical benefits to providing outpatient care and analytics to both affiliated and third-party customers.
Executives
Timothy Patrick Flynn director JPMORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017
Erin Mcsweeney officer: EVP Chief People Officer EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Thomas E Roos officer: Chief Accounting Officer C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
Stephen J Hemsley director, officer: Pres & COO, UnitedHealth Grp 200 WASHINGTON AVE N, SUITE 200, MINNEAPOLIS MN 55401
Andrew Witty director, officer: CEO, UHG C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
Charles D. Baker director 311 ARSENAL STREET, WATERTOWN MA 02472
Kristen Gil director C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
Dirk C Mcmahon officer: President & CEO, UHC C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
John F Rex officer: EVP Chief Financial Officer C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
Mcnabb Frederick William Iii director C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
Richard T Burke director 3962 TOMAHAWK TRAIL, MEDINA MN 55340
Rupert M Bondy officer: EVP & Chief Legal Officer C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
Paul R Garcia director 214 N TRYON STREET, CHARLOTTE NC 28202
Brian R Thompson officer: CEO, UnitedHealthcare C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
Matthew W. Friedrich officer: EVP & Chief Legal Officer COGNIZANT TECHNOLOGY SOLUTIONS CORP., 500 FRANK W. BURR BLVD, TEANECK NJ 07666