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WELL (Welltower) Degree of Operating Leverage : 0.35 (As of Mar. 2025)


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What is Welltower Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Welltower's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.35. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

WELL's Degree of Operating Leverage is ranked better than
63.32% of 728 companies
in the REITs industry
Industry Median: 1.235 vs WELL: 0.35

Welltower Degree of Operating Leverage Historical Data

The historical data trend for Welltower'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.

Welltower Degree of Operating Leverage Chart

Welltower 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 5.56 13.74 0.28 2.99 0.69

Welltower 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 3.58 1.85 1.44 0.69 0.35

Competitive Comparison of Welltower's Degree of Operating Leverage

For the REIT - Healthcare Facilities subindustry, Welltower'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.


Welltower's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Welltower's Degree of Operating Leverage distribution charts can be found below:

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


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Welltower Degree of Operating Leverage Calculation

Welltower'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
=( 1154.153 (Mar. 2025) / 1063.705 (Mar. 2024) - 1 )/( 8411.615 (Mar. 2025) / 6756.672 (Mar. 2024) - 1 )
=0.085/0.2449
=0.35***

* 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.


Welltower  (NYSE:WELL) 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.


Welltower Degree of Operating Leverage Related Terms

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


Welltower Business Description

Industry
Address
4500 Dorr Street, Toledo, OH, USA, 43615
Welltower owns a diversified healthcare portfolio of 2,271 in-place properties spread across the senior housing, medical office, and skilled nursing/postacute care sectors. The portfolio includes over 100 properties in both Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to that of the United States.
Executives
Kenneth J Bacon director 5404 WISCONSIN AVENUE, SUITE 410, CHEVY CHASE MD 20815
Karen B Desalvo director 500 W MAIN STREET, LOUISVILLE KY 40202
John F. Burkart officer: EVP-Chief Operating Officer C/O ESSEX PROPERTY TRUST INC., 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
Ade J. Patton director 4500 DORR STREET, TOLEDO DE 43515
Dennis G Lopez director 12700 HILL COUNTRY BOULEVARD, SUITE T-200, AUSTIN TX 78738
Philip L Hawkins director C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Diana Reid director 4500 DORR STREET, TOLEDO OH 43615
Ayesha Menon officer: SVP - Strategic Investments 4500 DORR STREET, TOLEDO OH 43615
Timothy Mchugh officer: SVP - Chief Financial Officer 4500 DORR STREET, TOLEDO OH 43515
Thomas J Derosa director C/O WELLTOWER INC., 4500 DORR STREET, TOLEDO OH 43615
John Goodey officer: Chief Financial Officer 4500 DORR STREET, TOLEDO OH 43615
Mercedes Kerr officer: EVP-Business Development 2449 GRIVEL PLACE, TUSTIN CA 92782
Kathryn M Sullivan director PO BOX 98029, BATON ROUGE LA 70898-9029
Johnese Spisso director 4500 DORR STREET, TOLEDO OH 43615
Shankh Mitra officer: SVP, Finance & Investments 4500 DORR STREET, TOLEDO OH 43615