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AVDL (Avadel Pharmaceuticals) Degree of Operating Leverage : -0.35 (As of Mar. 2025)


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What is Avadel Pharmaceuticals Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Avadel Pharmaceuticals'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 Avadel Pharmaceuticals's Degree of Operating Leverage or its related term are showing as below:

AVDL's Degree of Operating Leverage is ranked better than
61.03% of 952 companies
in the Drug Manufacturers industry
Industry Median: 0.62 vs AVDL: -0.35

Avadel Pharmaceuticals Degree of Operating Leverage Historical Data

The historical data trend for Avadel Pharmaceuticals'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.

Avadel Pharmaceuticals Degree of Operating Leverage Chart

Avadel Pharmaceuticals 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 2.09 - - - -0.15

Avadel Pharmaceuticals 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 - - -0.04 -0.15 -0.35

Competitive Comparison of Avadel Pharmaceuticals's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Avadel Pharmaceuticals'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.


Avadel Pharmaceuticals's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Avadel Pharmaceuticals's Degree of Operating Leverage distribution charts can be found below:

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


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Avadel Pharmaceuticals Degree of Operating Leverage Calculation

Avadel Pharmaceuticals'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
=( -16.197 (Mar. 2025) / -147.443 (Mar. 2024) - 1 )/( 194.45 (Mar. 2025) / 55.141 (Mar. 2024) - 1 )
=-0.8901/2.5264
=-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.


Avadel Pharmaceuticals  (NAS:AVDL) 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.


Avadel Pharmaceuticals Degree of Operating Leverage Related Terms

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


Avadel Pharmaceuticals Business Description

Traded in Other Exchanges
N/A
Address
10 Earlsfort Terrace, Dublin 2, Dublin, IRL, D02 T380
Avadel Pharmaceuticals PLC is a specialty pharmaceutical company. The group focused on transforming medicines to transform lives. It provides solutions to the development of medications that address the challenges patients face with current treatment options. The company is engaged in the development of differentiated drug products for administration in various forms such as capsules, tablets, injectables etc. Its commercialized product LUMRYZ is an extended-release formulation of sodium oxybate indicated to be taken once at bedtime for the treatment of cataplexy or EDS in adults with narcolepsy. It operates in one segment, the development and commercialization of pharmaceutical products, including controlled-release therapeutic products based on its proprietary polymer-based technology.
Executives
Linda Palczuk director 7015 ALBERT EINSTEIN DRIVE, COLUMBIA MD 21046
Eric J Ende director C/O MATINAS BIOPHARMA HOLDINGS, INC., 1545 ROUTE 206 SOUTH, SUITE 302, BEDMINSTER NJ 07921
Peter Thornton director TECHNOPATH LIFE SCIENCES PARK, FORT HENRY, BALLINA, CO. TIPPERARY L2 V94 FF1P
Thomas S Mchugh officer: Chief Financial Officer 2280 SCHUETZ ROAD, ST. LOUIS MO 63146
Geoffrey Michael Glass director 4721 EMPEROR BLVD, SUITE 200, DURHAM NC 27703
Greg J Divis director, officer: Chief Executive Officer 10-1 BLANCHARDSTOWN CORPORATE PARK, BALLYCOOLIN, DUBLIN L2 15
Mark Anthony Mccamish director C/O FORTY SEVEN, INC., 1490 O'BRIEN DRIVE, SUITE A, MENLO PARK CA 94025
Richard J Kim officer: Chief Commercial Officer 16 FAIRWAY DRIVE, WEST WINDSOR NJ 08550
Douglas J Williamson officer: Chief Medical Officer AVADEL PHARMACEUTICALS PLC, 10 EARLSFORT TERRACE, DUBLIN L2 D02 T390
Sandra L Hatten officer: See Remarks 10-1 BLANCHARDSTOWN CORPORATE PARK, BALLYCOOLIN, DUBLIN L2 15
Jason Vaughn officer: Sr. VP, Technical Operations 10-1 BLANCHARDSTOWN CORPORATE PARK, BALLYCOOLIN, DUBLIN L2 15
Jordan Dubow officer: Chief Medical Officer 10-1 BLANCHARDSTOWN CORPORATE PARK, BALLYCOOLIN, DUBLIN L2 15
Michael F Kanan officer: See Remarks 10-1 BLANCHARDSTOWN CORPORATE PARK, BALLYCOOLIN, DUBLIN L2 15
David P Gusky officer: See Remarks 10-1 BLANCHARDSTOWN CORPORATE PARK, BALLYCOOLIN, DUBLIN L2 15
Michael S Anderson director, officer: Chief Executive Officer 10-1 BLANCHARDSTOWN CORPORATE PARK, BALLYCOOLIN, DUBLIN L2 15