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Elixinol WellnessASX:EXL Degree of Operating Leverage is 2.60 as of Dec. 2025. The stock has 7 warning signs investors should review. Among 939 Drug Manufacturers companies, Elixinol Wellness ranks worse than 66.88% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Elixinol Wellness's Degree of Operating Leverage for the quarter that ended in Dec. 2025 was 2.60. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Elixinol Wellness's Degree of Operating Leverage or its related term are showing as below:
ASX:EXL's Degree of Operating Leverage is ranked worse than 66.88% of 939
companies
in the Drug Manufacturers industry
Industry Median: 0.97
vs ASX:EXL: 2.60
Elixinol Wellness (ASX:EXL) 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.
Elixinol Wellness Degree of Operating Leverage Related Terms
Elixinol Wellness Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Elixinol Wellness'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.
Elixinol Wellness Degree of Operating Leverage Chart
ASX:EXL vs ZTS, UTHR: Degree of Operating Leverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Elixinol Wellness'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.
Elixinol Wellness Degree of Operating Leverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Elixinol Wellness's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Elixinol Wellness's Degree of Operating Leverage falls into.
* 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.
What does a Degree of Operating Leverage of 2.60 mean?
Elixinol Wellness (ASX:EXL) has a Degree of Operating Leverage of 2.60 as of Dec. 2025. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Elixinol Wellness and its competitors. According to the industry distribution chart, Elixinol Wellness ranks #628 out of 939 companies in the Drug Manufacturers industry, placing it in the top 66.9%.
Is Elixinol Wellness' Degree of Operating Leverage too high?
Elixinol Wellness' current Degree of Operating Leverage is 2.60. The Drug Manufacturers industry median Degree of Operating Leverage is 0.97. Elixinol Wellness' value of 2.60 is 168% above this industry median. Based on the distribution chart, Elixinol Wellness ranks #628 out of 939 companies in the Drug Manufacturers industry, which is below the industry midpoint.
How does Elixinol Wellness' Degree of Operating Leverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Elixinol Wellness ranks #628 out of 939 companies for Degree of Operating Leverage. This places Elixinol Wellness in the lower half of its industry. The industry median Degree of Operating Leverage is 0.97. Elixinol Wellness' value of 2.60 is 168% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Drug Manufacturers company?
The median Degree of Operating Leverage among Drug Manufacturers companies is 0.97, based on 939 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Elixinol Wellness's current Degree of Operating Leverage of 2.60 is 168% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Elixinol Wellness and its competitors. For the Drug Manufacturers industry, the median Degree of Operating Leverage is 0.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elixinol Wellness's current Degree of Operating Leverage is 2.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elixinol Wellness stock overvalued right now?
Based on GuruFocus' analysis, Elixinol Wellness (ASX:EXL) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.02, compared to a current price of A$0.01 — trading 60% below its estimated fair value. The current Degree of Operating Leverage is 2.60 and 168% above the Drug Manufacturers industry median of 0.97. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Elixinol Wellness (ASX:EXL), the current Degree of Operating Leverage is 2.60 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Elixinol Wellness Ltd is engaged in the hemp industry, innovating, marketing, and selling hemp-derived nutraceutical, cosmetic, and food products. It operates in the three operating segments of the Americas, Australia, Rest of the World regions of which key revenue is derived from the Australia segment. The Australia segment includes the results from operations of Elixinol Wellness (Byron Bay) Pty Ltd and The Sustainable Nutrition Group Pty Ltd and its subsidiaries. It derives maximum revenue from Australia.
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