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BMRA (Biomerica) Degree of Operating Leverage : -4.68 (As of Feb. 2025)


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What is Biomerica Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Biomerica's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was -4.68. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BMRA's Degree of Operating Leverage is ranked better than
85.57% of 797 companies
in the Medical Devices & Instruments industry
Industry Median: 0.65 vs BMRA: -4.68

Biomerica Degree of Operating Leverage Historical Data

The historical data trend for Biomerica'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.

Biomerica Degree of Operating Leverage Chart

Biomerica Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.39 23.45 -0.24 -0.83 -8.42

Biomerica Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 0.15 -8.42 1.08 -4.94 -4.68

Competitive Comparison of Biomerica's Degree of Operating Leverage

For the Medical Devices subindustry, Biomerica'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.


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

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

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


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Biomerica Degree of Operating Leverage Calculation

Biomerica's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -5.099 (Feb. 2025) / -6.676 (Feb. 2024) - 1 )/( 5.678 (Feb. 2025) / 5.405 (Feb. 2024) - 1 )
=-0.2362/0.0505
=-4.68***

* 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.


Biomerica  (NAS:BMRA) 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.


Biomerica Degree of Operating Leverage Related Terms

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


Biomerica Business Description

Traded in Other Exchanges
N/A
Address
17571 Von Karman Avenue, Irvine, CA, USA, 92614
Biomerica Inc is engaged in the development, manufacturing, and marketing of medical diagnostic products designed for the early detection and monitoring of chronic diseases and medical conditions. The company focuses on products for gastrointestinal diseases, food intolerances, diabetes, and certain esoteric tests. It operates in one segment namely, the design, development, marketing and sales of diagnostic kits. The majority of the company's revenue is earned from the Asia, and also has its presence in Europe, North America, Middle East and South America.
Executives
John P. Kenny director 3471 RIVER HILLS DRIVE, CINCINNATI OH 45244
Zacharys Irani director, officer: Cheif Executive Officer 17571 VON KARMAN AVE., IRVINE CA 92614
Gary Lu officer: Chief Financial Officer 12136 AHERN CT, TUSTIN CA 92782
Allen Barbieri director
Catherine Coste director 966 OCHO RIOS DR, DANVILLE CA 94526
David Moatazedi director C/O OBALON THERAPEUTICS, INC., 5421 AVENIDA ENCINAS, SUITE F, CARLSBAD CA 92008
Steven Sloan officer: Chief Financial Officer 114 TERRAPIN, IRVINE CA 92618
Mark A Sirgo director C/O BIODELIVERY SCIENCES INTERNATIONAL, 801 CORPORATE CENTER DRIVE -SUITE 210, RALEIGH NC 27607
Francis Cano director 11 ACORN LANE, LOS ALTOS CA 94022
Francis E Capitanio officer: President-diagnostics 1533 MONROVIA AVENUE, NEWPORT BEACH CA 92663
Janet Moore director, 10 percent owner, officer: Secretary 1533 MUNROVIA AVE, NEWPORT BEACH CA 92663
Jane Emerson director 1533 MONROVIA AVE, NEWPORT BEACH CA 92663
William Snider other: Greater than 5% holder 4800 MONTGOMERY LANE, SUITE 230, BETHESDA MD 20814
Broadoak Fund The other: Greater than 5% holder 7201 WISCONSIN AVE. #630, BETHESDA MD 20814
John Roehm director 1533 MONROVIA AVE., NEWPORT BEACH CA 92663