GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Avanos Medical Inc (NYSE:AVNS) » Definitions » Degree of Operating Leverage

AVNS (Avanos Medical) Degree of Operating Leverage : -1,733.19 (As of Mar. 2025)


View and export this data going back to 2014. Start your Free Trial

What is Avanos Medical Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Avanos Medical's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1,733.19. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AVNS's Degree of Operating Leverage is ranked better than
99.62% of 798 companies
in the Medical Devices & Instruments industry
Industry Median: 0.625 vs AVNS: -1733.19

Avanos Medical Degree of Operating Leverage Historical Data

The historical data trend for Avanos Medical'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.

Avanos Medical Degree of Operating Leverage Chart

Avanos Medical 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 -3.39 0.80 -9.90 12.64 -2,604.26

Avanos Medical 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 86.73 -735.56 -14,861.11 -2,604.26 -1,733.19

Competitive Comparison of Avanos Medical's Degree of Operating Leverage

For the Medical Devices subindustry, Avanos Medical'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.


Avanos Medical's Degree of Operating Leverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Avanos Medical's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Avanos Medical Degree of Operating Leverage Calculation

Avanos Medical'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
=( -383.9 (Mar. 2025) / 17.3 (Mar. 2024) - 1 )/( 689.2 (Mar. 2025) / 680.1 (Mar. 2024) - 1 )
=-23.1908/0.0134
=-1,733.19***

* 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.


Avanos Medical  (NYSE:AVNS) 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.


Avanos Medical Degree of Operating Leverage Related Terms

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


Avanos Medical Business Description

Traded in Other Exchanges
N/A
Address
5405 Windward Parkway, Suite 100 South, Alpharetta, GA, USA, 30004
Avanos Medical Inc is a United States-based company that develops and sells medical devices and related services globally. Its operating and reportable segment provides medical device products to healthcare providers and patients. The company has now changed two franchises: has combined Chronic Care and Pain Management franchises into a single commercial organization focused on the Digestive Health and Pain Management and Recovery product categories that generate its revenue from its Chronic Care franchise and in North America.
Executives
Kerr Holbrook officer: SVP, GM Chronic Care 5405 WINDWARD PKWY, ALPHARETTA GA 30004
Michael Greiner officer: SVP - Chief Financial Officer C/O VISTAPRINT, 95 HAYDEN AVENUE, LEXINGTON MA 02421
Julie Ann Shimer director 18453 LAS CUMBRES ROAD, LOS GATOS CA 95033
Sudhakar Varshney officer: SVP, Global Supply Chain 5405 WINDWARD PARKWAY, SUITE 100 SOUTH, ALPHARETTA GA 30004
Lisa Egbuonu-davis director C/O OMEGA HEALTHCARE INVESTORS, INC., 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
John Joseph Hurley officer: Principal Accounting Officer 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
Patrick J Oleary director 31515 BALLANTYNE CORP, C/O SPX CORP, CHARLOTTE NC 28277
Mojirade James officer: SVP, General Counsel 5405 WINDWARD PKWY, ALPHARETTA GA 30004
William David Haydon officer: SVP, GM Pain Franchise 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
David Edward Ball officer: SVP - Global Supply Chain AVANOS MEDICAL, INC., 5405 WINDWARD PKWY, ALPHARETTA GA 30004
Arjun Ranjan Sarker officer: Senior VP, International HALYARD HEALTH, INC., 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
Gary Blackford director 7700 FRANCE AVENUE SOUTH, EDINA MN 55435
Joseph Fralin Woody director, officer: Chief Executive Officer 5405 WINDWARD PARKWAY, SUITE 100 SOUTH, ALPHARETTA GA 30004
Steven E Voskuil officer: See Remarks 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
John W Wesley director 5405 WINDWARD PARKWAY, ALPHARETTA GA 30004