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ELMD (Electromed) Degree of Operating Leverage : 3.77 (As of Mar. 2025)


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What is Electromed Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Electromed's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.77. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ELMD's Degree of Operating Leverage is ranked worse than
76.72% of 799 companies
in the Medical Devices & Instruments industry
Industry Median: 0.59 vs ELMD: 3.77

Electromed Degree of Operating Leverage Historical Data

The historical data trend for Electromed'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.

Electromed Degree of Operating Leverage Chart

Electromed Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.61 -3.82 -0.33 2.27 4.64

Electromed 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 5.34 4.64 7.06 4.55 3.77

Competitive Comparison of Electromed's Degree of Operating Leverage

For the Medical Devices subindustry, Electromed'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.


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

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

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


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Electromed Degree of Operating Leverage Calculation

Electromed'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
=( 8.955 (Mar. 2025) / 5.74 (Mar. 2024) - 1 )/( 61.439 (Mar. 2025) / 53.496 (Mar. 2024) - 1 )
=0.5601/0.1485
=3.77***

* 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.


Electromed  (AMEX:ELMD) 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.


Electromed Degree of Operating Leverage Related Terms

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


Electromed Business Description

Traded in Other Exchanges
N/A
Address
500 Sixth Avenue NW, New Prague, MN, USA, 56071
Electromed Inc is a United States-based company that develops, manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest Airway Clearance System and related products, to patients with compromised pulmonary function with a commitment to excellence and compassionate service. The SmartVest System features a programmable air pulse generator, a therapy garment worn over the upper body and a connecting hose, which together provide safe, comfortable, and effective airway clearance therapy.
Executives
Andrew Summers director 601 JEFFERSON STREET, HOUSTON TX 77002
Kathleen Skarvan officer: Chief Executive Officer 40 WEST HIGHLAND PARK DR NE, HUTCHINSON MN 55350
James L. Cunniff director, officer: CEO and President 500 SIXTH AVE NW, NEW PRAGUE MN 56071
Bradley M. Nagel officer: Chief Financial Officer 500 SIXTH AVE NW, NEW PRAGUE MN 56071
Michelle C. Wirtz officer: Chief Financial Officer 500 SIXTH AVENUE NW,, NEW PRAGUE MN 56071
Christopher G. Holland officer: Chief Commercial Officer 500 SIXTH AVENUE NW, NEW PRAGUE MN 56071
Joseph L. Galatowitsch director 500 SIXTH AVENUE NW, NEW PRAGUE MN 56071
Kathleen A Tune director 60 SOUTH SIXTH STREET, SUITE 3620, MINNEAPOLIS MN 55402
A Jones Lee director 54 LOCKE LAKE RD, FRIDLEY MN 55432
Stephen H. Craney director 25340 SANDPIPER LANE, WINONA MN 55987
Andrea M. Walsh director 500 SIXTH AVENUE NW, NEW PRAGUE MN 56071
George H. Winn director 27451 COUNTRY HOLLOWS LANE, NEW PRAGUE MN 56701
Michael Joseph Maccourt officer: Chief Financial Officer 500 SIXTH AVENUE NW, NEW PRAGUE MN 56071
Gregory Fluet director 14405 21ST AVENUE NORTH, MINNEAPOLIS MN 55447
John L Erb director C/O VASCULAR SOLUTIONS, INC., 6464 SYCAMORE COURT N., MINNEAPOLIS, MN 55369