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MOH (Molina Healthcare) Degree of Operating Leverage : 0.66 (As of Mar. 2025)


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What is Molina Healthcare Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Molina Healthcare's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.66. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MOH's Degree of Operating Leverage is ranked worse than
57.14% of 21 companies
in the Healthcare Plans industry
Industry Median: -0.09 vs MOH: 0.66

Molina Healthcare Degree of Operating Leverage Historical Data

The historical data trend for Molina Healthcare'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.

Molina Healthcare Degree of Operating Leverage Chart

Molina Healthcare 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 0.02 -0.15 1.18 5.20 0.44

Molina Healthcare 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 2.12 1.00 1.15 0.44 0.66

Competitive Comparison of Molina Healthcare's Degree of Operating Leverage

For the Healthcare Plans subindustry, Molina Healthcare'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.


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

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

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


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Molina Healthcare Degree of Operating Leverage Calculation

Molina Healthcare'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
=( 1714 (Mar. 2025) / 1544 (Mar. 2024) - 1 )/( 41866 (Mar. 2025) / 35854 (Mar. 2024) - 1 )
=0.1101/0.1677
=0.66***

* 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.


Molina Healthcare  (NYSE:MOH) 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.


Molina Healthcare Degree of Operating Leverage Related Terms

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


Molina Healthcare Business Description

Traded in Other Exchanges
Address
200 Oceangate, Suite 100, Long Beach, CA, USA, 90802
Molina Healthcare Inc offers healthcare plans focused on Medicaid-related solutions for low-income families and individuals. Its health plans are operated by a network of subsidiaries, each of which is licensed as a health maintenance organization (HMO). It has four segments: Medicaid, Medicare, Marketplace and Others. The Medicaid, Medicare, and Marketplace segments represent the government-funded or sponsored programs under which it offers managed healthcare services. The Other segment, which is insignificant to its consolidated results of operations, includes long-term services and supports consultative services in Wisconsin. It generates majority revenue from Medicaid segment.
Executives
Steven J Orlando director
Richard M Schapiro director 300 UNIVERSITY AVENUE, SUITE 100, SACRAMENTO CA 95825
Maurice Hebert officer: Chief Accounting Officer C/O WELLCARE HEALTH PLANS, INC., 8735 HENDERSON ROAD, TAMPA FL 33634
Jeff D. Barlow officer: Chief Legal Officer 300 UNIVERSITY AVENUE, SUITE 100, SACRAMENTO CA 95825
James Woys officer: Executive Vice President 21650 OXNARD STREET, 22ND FLOOR, WOODLAND HILLS CA 91367
Ronna Romney director
Dale B Wolf director
Mark Lowell Keim officer: Executive Vice President 440 LINCOLN STREET, E-6, WORCESTER MA 01653
Marc Russo officer: Executive Vice President C/O WELLCARE HEALTH PLANS, INC., 8725 HENDERSON ROAD, REN. 1, TAMPA FL 33634
Barbara L Brasier director C/O MEADWESTVACO CORP, ONE HIGH RIDGE PARK, STAMFORD CT 06905
Daniel Cooperman director DANIEL COOPERMAN, 930 CULEBRA ROAD, HILLSBOROUGH CA 94010
Joseph M Zubretsky director, officer: President & CEO C/O THE HANOVER INSURANCE GROUP, INC., 440 LINCOLN STREET, WORCESTER MA 01653
Thomas L Tran officer: Chief Financial Officer 8735 HENDERSON ROAD, TAMPA FL 33625
Stephen H Lockhart director C/O NATIONAL RESEARCH CORPORATION, 1245 Q STREET, LINCOLN NE 68508
Garrey Carruthers director 5258 REDMAN RD., LAS CRUCES NM 88011