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CLSH (CLS Holdings USA) Degree of Operating Leverage : 10.23 (As of Feb. 2025)


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What is CLS Holdings USA Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. CLS Holdings USA's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 10.23. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CLSH's Degree of Operating Leverage is ranked worse than
87.58% of 950 companies
in the Drug Manufacturers industry
Industry Median: 0.64 vs CLSH: 10.23

CLS Holdings USA Degree of Operating Leverage Historical Data

The historical data trend for CLS Holdings USA'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.

CLS Holdings USA Degree of Operating Leverage Chart

CLS Holdings USA 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 0.48 -1.05 -6.75 -322.26 6.97

CLS Holdings USA 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 -0.09 6.97 7.73 8.04 10.23

Competitive Comparison of CLS Holdings USA's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, CLS Holdings USA'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.


CLS Holdings USA's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

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

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


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CLS Holdings USA Degree of Operating Leverage Calculation

CLS Holdings USA'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
=( 4.015 (Feb. 2025) / -6.602 (Feb. 2024) - 1 )/( 17.544 (Feb. 2025) / 20.815 (Feb. 2024) - 1 )
=-1.6081/-0.1571
=10.23***

* 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.


CLS Holdings USA  (OTCPK:CLSH) 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.


CLS Holdings USA Degree of Operating Leverage Related Terms

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


CLS Holdings USA Business Description

Traded in Other Exchanges
Address
516 South, 4th Street, Las Vegas, NV, USA, 89101
CLS Holdings USA Inc is a diversified cannabis company that acts as an integrated cannabis producer and retailer through its Oasis Cannabis subsidiaries in Nevada and plans to expand to other states. CLS stands for Cannabis Life Sciences in recognition of the company's patented proprietary method of extracting various cannabinoids from the marijuana plant and converting them into products with a higher level of quality and consistency. The company's business model includes licensing operations, processing operations, processing facilities, sale of products, brand creation and consulting services. The company generates the majority of its revenues and corresponding accounts receivable from the sale of cannabis, and cannabis related products.
Executives
Ross Silver director 516 SW 13TH STREET, SUITE 201, BEND OR 97702
Frank Koretsky director, 10 percent owner C/O 11767 SOUTH DIXIE HIGHWAY, #115, MIAMI FL 33156
Navy Capital Green Management Llc 10 percent owner, other: See Remark(1) 482 BAYBERRY LANE, MOUNTAINSIDE NJ 07092
Tribeca Investment Partners Pty Ltd 10 percent owner LEVEL 23, 1 O'CONNELL STREET, SYDNEY C3 2000
Andrew Glashow director 1C BOWENS LANDING, NEWPORT RI 02840
David Zelinger director C/O CLS HOLDINGS USA, INC., 11767 SOUTH DIXIE HIGHWAY, SUITE 115, MIAMI FL 33156
Charlene Soco officer: Executive VP of Finance C/O CLS HOLDINGS USA, INC., 11767 SOUTH DIXIE HIGHWAY, SUITE 115, MIAMI FL 33156
Chetan Gulati 10 percent owner 28 REICHERT CIRCLE, WESTPORT CT 06880
Todd V Swanson 10 percent owner 10120 W. FLAMINGO ROAD, #4333, LAS VEGAS NV 89147
Gregg E. Carlson officer: Chief Financial Officer 2342 MALAGA PEAK STREET, LAS VEGAS NV 89135
Navy Capital Green Co-invest Partners Llc 10 percent owner, other: See Remark(1) 28 REICHERT CIRCLE, WESTPORT CT 06880
Navy Capital Green Co-invest Fund, Llc 10 percent owner 28 REICHERT CIRCLE, WESTPORT CT 06880
Navy Capital Green Management Partners Llc 10 percent owner 28 REICHERT CIRCLE, WESTPORT CT 06880
John Kaden 10 percent owner 28 REICHERT CIRCLE, WESTPORT CT 06880
Sean Stiefel 10 percent owner 28 REICHERT CIRCLE, WESTPORT CT 06880