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MPW (Medical Properties Trust) Degree of Operating Leverage : 67.61 (As of Jun. 2024)


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What is Medical Properties Trust Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Medical Properties Trust's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 67.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MPW's Degree of Operating Leverage is ranked worse than
94.56% of 699 companies
in the REITs industry
Industry Median: 0.98 vs MPW: 67.61

Medical Properties Trust Degree of Operating Leverage Historical Data

The historical data trend for Medical Properties Trust'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.

Medical Properties Trust Degree of Operating Leverage Chart

Medical Properties Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.80 0.96 1.07 28.63 2.11

Medical Properties Trust Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 8.33 8.31 2.11 6.46 67.61

Competitive Comparison of Medical Properties Trust's Degree of Operating Leverage

For the REIT - Healthcare Facilities subindustry, Medical Properties Trust'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.


Medical Properties Trust's Degree of Operating Leverage Distribution in the REITs Industry

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

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



Medical Properties Trust Degree of Operating Leverage Calculation

Medical Properties Trust's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -926.133 (Jun. 2024) / 28.725 (Jun. 2023) - 1 )/( 722.069 (Jun. 2024) / 1420.431 (Jun. 2023) - 1 )
=-33.2414/-0.4917
=67.61***

* 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.


Medical Properties Trust  (NYSE:MPW) 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.


Medical Properties Trust Degree of Operating Leverage Related Terms

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


Medical Properties Trust Business Description

Address
1000 Urban Center Drive, Suite 501, Birmingham, AL, USA, 35242
Medical Properties Trust Inc is a healthcare facility REIT. The company operates one segment, which owns and leases healthcare facilities. The vast majority of Medical's revenue is generated in the United States, followed by Germany and the United Kingdom. It provides financing for a variety of facilities that require funds for acquisitions, sale-leasebacks, new developments, and expansion projects.
Executives
Elizabeth N Pitman director 1901 SIXTH AVE NORTH, SUITE 1400, BIRMINGHAM AL 35203
Thompson C Reynolds Iii director 227 WEST TRADE STREET, SUITE 900, CHARLOTTE NC 28202
Aldag Edward K Jr director, officer: Chairman, President & CEO 1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242
R Steven Hamner director, officer: Executive Vice President & CFO
Larry H Portal officer: SVP, Senior Advisor to the CEO 1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242
Rosa Handley Hooper officer: SVP of Operations & Asst. Sec. 1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242
James Kevin Hanna officer: Senior VP, Controller & CAO 1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242
Michael G Stewart officer: Exec. VP, Gen Counsel, Sec 1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242
Emily Webster Murphy director 601 N FAIRFAX ST, ALEXANDRIA VA 22314
Emmett E Mclean officer: EVP, Secretary, and COO 1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242
Caterina Ardon Mozingo director PO BOX 33, MONTGOMERY AL 36101-0033
G Steven Dawson director CIRA CENTRE, 2929 ARCH STREET, 17TH FLOOR, PHILADELPHIA PA 19104-2870
William G Mckenzie director, officer: Vice Chairman of the Board 1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242
Sherry A Kellett director
Daniel Paul Sparks director 1000 URBAN CENTER DRIVE, SUITE 501, BIRMINGHAM AL 35242