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ECIA (Encision) Degree of Operating Leverage : -4.24 (As of Dec. 2024)


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What is Encision Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Encision's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -4.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ECIA's Degree of Operating Leverage is ranked better than
84.46% of 798 companies
in the Medical Devices & Instruments industry
Industry Median: 0.625 vs ECIA: -4.24

Encision Degree of Operating Leverage Historical Data

The historical data trend for Encision'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.

Encision Degree of Operating Leverage Chart

Encision Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.30 310.02 -62.82 -106.12 -10.31

Encision Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 9.74 -10.31 7.71 -8.19 -4.24

Competitive Comparison of Encision's Degree of Operating Leverage

For the Medical Instruments & Supplies subindustry, Encision'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.


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

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

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


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Encision Degree of Operating Leverage Calculation

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

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.473 (Dec. 2024) / -0.385 (Dec. 2023) - 1 )/( 6.497 (Dec. 2024) / 6.867 (Dec. 2023) - 1 )
=0.2286/-0.0539
=-4.24***

* 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.


Encision  (OTCPK:ECIA) 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.


Encision Degree of Operating Leverage Related Terms

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


Encision Business Description

Traded in Other Exchanges
N/A
Address
6797 Winchester Circle, Boulder, CO, USA, 80301
Encision Inc is a medical device company. The company develops and markets technology that provides unprecedented outcomes and patient safety in minimally invasive surgery. The company has established and developed AEM (Active Electrode Monitoring) technology and surgical instruments which provide surgeons with the desired tissue effects of cutting and coagulating tissue in laparoscopic procedures while preventing stray electrosurgical energy that can cause complications and even death. The segments of the company are Product and Service. Product designs develops, manufactures and markets patented surgical instruments. Service performs electrical engineering activities for external entities. Maximum revenue is generated from the product segment.
Executives
Robert H Fries director 800 FILLMORE ST, DENVER CO 80206
Gregory J. Trudel director, officer: CEO 5241 RIMROCK LANE, FORT COLLINS CO 80526
Peter D Geary officer: VP of Operations 6797 WINCHESTER CIRCLE, BOULDER CO 80301
Jason E Johnson officer: VP Sales 17752 WEDGEWOOD LANE, PRIOR LAKE MN 55372
Patrick R Dixon director 6797 WINCHESTER CIRCLE, BOULDER CO 80301
Brian J Jackman director 6797 WINCHESTER CIRCLE, SUITE 100, BOULDER CO 80301
Von Der Lippe Paul director 6797 WINCHESTER CIRCLE, BOULDER CO 80301
Denise Baker director 6797 WINCHESTER CIRCLE, BOULDER X1 80301
Vern D Kornelsen director, 10 percent owner 4605 S. DENICE DR, ENGLEWOOD CO 80111
Partners Lllp Cmed 10 percent owner
Patrick W Pace director 3701 SOARING EAGLE, AUSTIN TX 78746
Michael Biggs officer: VP Engineering 6797 WINCHESTER CIRCLE, BOULDER CO 80301
Brad Greathouse officer: VP RA/QA 6797 WINCHESTER CIRCLE, BOULDER CO 80301
Valerie Ray officer: VP of Operations 6797 WINCHESTER CIRCLE, BOULDER CO 80301
David W Newton director, officer: VP Technology 8099 NORTH 63RD STREET, LONGMONT CO 80503

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