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BIOLQ (Biolase) Degree of Operating Leverage : 5.07 (As of Sep. 2024)


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What is Biolase Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Biolase's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 5.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BIOLQ's Degree of Operating Leverage is ranked worse than
79.67% of 797 companies
in the Medical Devices & Instruments industry
Industry Median: 0.65 vs BIOLQ: 5.07

Biolase Degree of Operating Leverage Historical Data

The historical data trend for Biolase'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.

Biolase Degree of Operating Leverage Chart

Biolase 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 1.37 0.22 -0.05 3.63 -20.19

Biolase Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -0.26 -20.19 -222.07 3.78 5.07

Competitive Comparison of Biolase's Degree of Operating Leverage

For the Medical Devices subindustry, Biolase'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.


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

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

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


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Biolase Degree of Operating Leverage Calculation

Biolase's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -13.585 (Sep. 2024) / -21.814 (Sep. 2023) - 1 )/( 46.026 (Sep. 2024) / 49.725 (Sep. 2023) - 1 )
=-0.3772/-0.0744
=5.07***

* 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.


Biolase  (OTCPK:BIOLQ) 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.


Biolase Degree of Operating Leverage Related Terms

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


Biolase Business Description

Traded in Other Exchanges
N/A
Address
27042 Towne Centre Drive, Suite 270, Lake Forest, CA, USA, 92610
Biolase Inc is a United States-based provider of laser systems for the dental industry. It develops, manufactures, markets, and sells laser systems in dentistry and medicine. The company offers two categories of laser system products: Waterlase (all-tissue) systems and Diode (soft-tissue) systems which allow dentists, periodontists, endodontists, oral surgeons, and other dental specialists to perform a broad range of minimally invasive dental procedures, including cosmetic, restorative, and complex surgical applications. The majority of the company's revenue comes from the United States.
Executives
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Lord Jonathan T Md director 500 WEST MAIN ST., LOUISVILLE KY 40202
Jennifer Bright officer: Chief Financial Officer 27042 TOWNE CENTRE DRIVE,, SUITE 270, FOOTHILL RANCH CA 92610
Steven Sandor officer: Chief Operating Officer 27042 TOWNE CENTRE DRIVE,, SUITE 270, FOOTHILL RANCH CA 92610
Jess Roper director 5555 OBERLIN DRIVE, SAN DIEGO CA 92121
Kenneth P. Yale director 27042 TOWN CENTRE DRIVE, SUITE 270, FOOTHILL RANCH CA 92610
John R Beaver director, officer: President & CEO C/O STERLING CHEMICALS INC, 1200 SMITH STREET, HOUSTON TX 77002
Kathleen T Oloughlin director 27042 TOWN CENTRE DRIVE, SUITE 270, FOOTHILL RANCH CA 92610
Somerman Martha J. Dds, Phd director 27042 TOWN CENTRE DRIVE, SUITE 270, FOOTHILL RANCH CA 92610
Summerhays Carol Gomez Dds director 27042 TOWN CENTRE DRIVE, SUITE 270, FOOTHILL RANCH CA 92610
Family Foundation Schuler 10 percent owner 100 N. FIELD DRIVE, SUITE 360, LAKE FOREST IL 60045
Larry N Feinberg 10 percent owner C/O ORACLE PARTNERS L P, 200 GREENWICH AVENUE, GREENWICH CT 06830
Jack W Schuler 10 percent owner 100 N. FIELD DRIVE, SUITE 360, LAKE FOREST IL 60045
Michael Ditolla director 3299 CAMBRIDGE AVE, BRONX NY 10463