GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Omega Healthcare Investors Inc (NYSE:OHI) » Definitions » Degree of Operating Leverage

OHI (Omega Healthcare Investors) Degree of Operating Leverage : 1.40 (As of Jun. 2024)


View and export this data going back to 1992. Start your Free Trial

What is Omega Healthcare Investors Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Omega Healthcare Investors's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 1.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OHI's Degree of Operating Leverage is ranked worse than
57.59% of 698 companies
in the REITs industry
Industry Median: 0.98 vs OHI: 1.40

Omega Healthcare Investors Degree of Operating Leverage Historical Data

The historical data trend for Omega Healthcare Investors'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.

Omega Healthcare Investors Degree of Operating Leverage Chart

Omega Healthcare Investors 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 2.01 7.70 3.60 -0.17 -3.27

Omega Healthcare Investors 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 1.83 2.09 -3.27 0.23 1.40

Competitive Comparison of Omega Healthcare Investors's Degree of Operating Leverage

For the REIT - Healthcare Facilities subindustry, Omega Healthcare Investors'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.


Omega Healthcare Investors's Degree of Operating Leverage Distribution in the REITs Industry

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

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



Omega Healthcare Investors Degree of Operating Leverage Calculation

Omega Healthcare Investors'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
=( 579.573 (Jun. 2024) / 480.98 (Jun. 2023) - 1 )/( 977.395 (Jun. 2024) / 852.669 (Jun. 2023) - 1 )
=0.205/0.1463
=1.40***

* 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.


Omega Healthcare Investors  (NYSE:OHI) 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.


Omega Healthcare Investors Degree of Operating Leverage Related Terms

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


Omega Healthcare Investors Business Description

Traded in Other Exchanges
Address
303 International Circle, Suite 200, Hunt Valley, MD, USA, 21030
Omega Healthcare Investors Inc is a healthcare facility real estate investment trust that invests in the United States real estate markets. Omega's portfolio focuses on long-term healthcare facilities. Omega has one reportable segment consisting of investments in healthcare-related real estate properties located in the United States and the United Kingdom. Its core business is to provide financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities (SNFs), assisted living facilities (ALFs), and to a lesser extent, independent living facilities (ILFs), rehabilitation and acute care facilities (specialty facilities) and medical office buildings (MOBs).
Executives
Daniel J Booth officer: Chief Operating Officer 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21093
Robert O Stephenson officer: Chief Financial Officer C/O OMEGA HEALTHCARE INVESTORS, 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21093
Lisa Egbuonu-davis director C/O OMEGA HEALTHCARE INVESTORS, INC., 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Gail D Makode officer: Chief Legal Officer ONE SOUND SHORE DR, SUITE 304, GREENWICH CT 06830
Kapila K Anand director C/O EXTENDED STAY AMERICA, INC., 11525 N. COMMUNITY HOUSE ROAD, SUITE 100, CHARLOTTE NC 28277
Neal Ballew officer: Chief Accounting Officer 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Burke W Whitman director 13455 NOEL ROAD # 2000, DALLAS TX 75240
Steven J Insoft officer: Chief Corp Development Officer
C Taylor Pickett director, officer: Chief Executive Officer C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Kevin J Jacobs director 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Michael Ritz officer: Chief Accounting Officer 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21131
Craig R Callen director 7902 WESTPARK DR, C/O SUNRISE ASSISTED LIVING, MCLEAN VA 22102
Ben W Perks director
Bernard J Korman director OMEGA HEALTHCARE INVESTORS INC, ANN ARBOR MI 48108
Craig M Bernfield director 303 WEST MADISON STREET, SUITE 2400, CHICAGO IL 60606