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EDAP (Edap TMS) Degree of Operating Leverage : 2.23 (As of Mar. 2025)


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What is Edap TMS Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Edap TMS's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.23. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EDAP's Degree of Operating Leverage is ranked worse than
62.83% of 113 companies
in the Medical Distribution industry
Industry Median: 0.88 vs EDAP: 2.23

Edap TMS Degree of Operating Leverage Historical Data

The historical data trend for Edap TMS'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.

Edap TMS Degree of Operating Leverage Chart

Edap TMS 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 45.41 -29.64 -23.91 84.95 -1.38

Edap TMS 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 12.68 6.07 2.49 -1.38 2.23

Competitive Comparison of Edap TMS's Degree of Operating Leverage

For the Medical Distribution subindustry, Edap TMS'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.


Edap TMS's Degree of Operating Leverage Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Edap TMS's Degree of Operating Leverage distribution charts can be found below:

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


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Edap TMS Degree of Operating Leverage Calculation

Edap TMS'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
=( -21.349 (Mar. 2025) / -20.065 (Mar. 2024) - 1 )/( 67.468 (Mar. 2025) / 65.587 (Mar. 2024) - 1 )
=0.064/0.0287
=2.23***

* 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.


Edap TMS  (NAS:EDAP) 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.


Edap TMS Degree of Operating Leverage Related Terms

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Edap TMS Business Description

Traded in Other Exchanges
Address
Parc d\'Activites La Poudrette-Lamartine, 4/6, rue du Dauphine, Vaulx-en-Velin, FRA, 69120
Edap TMS SA is a holding company operating in three divisions namely, HIFU (High-Intensity Focused Ultrasound), ESWL (Extracorporeal ShockWave Lithotripsy), and Distribution. The HIFU division develops, manufactures, and markets devices for the invasive destruction of certain types of tumors using HIFU technology. It markets three HIFU devices: the Ablatherm, Ablatherm Fusion, and the Focal One. The ESWL division is engaged in the manufacturing, marketing, and servicing of its installed base of Sonolith range of lithotripters. The Distribution division markets products that are complementary to its globalized activity such as lasers, micro-ultrasound systems, and other medical products from third parties. Its geographical segments are Asia, France, United States, and Others.