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EMED (Electromedical Technologies) Degree of Operating Leverage : 0.80 (As of Sep. 2024)


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What is Electromedical Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Electromedical Technologies's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 0.80. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EMED's Degree of Operating Leverage is ranked worse than
53.63% of 798 companies
in the Medical Devices & Instruments industry
Industry Median: 0.625 vs EMED: 0.80

Electromedical Technologies Degree of Operating Leverage Historical Data

The historical data trend for Electromedical Technologies'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.

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Electromedical Technologies Degree of Operating Leverage Chart

Electromedical Technologies Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
- - 2.90 -1.80 -1.99

Electromedical Technologies Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -0.93 -1.99 -10.09 4.91 0.80

Competitive Comparison of Electromedical Technologies's Degree of Operating Leverage

For the Medical Devices subindustry, Electromedical Technologies'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.


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

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

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


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Electromedical Technologies Degree of Operating Leverage Calculation

Electromedical Technologies's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -1.447 (Sep. 2024) / -2.007 (Sep. 2023) - 1 )/( 0.923 (Sep. 2024) / 1.421 (Sep. 2023) - 1 )
=-0.279/-0.3505
=0.80***

* 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.


Electromedical Technologies  (OTCPK:EMED) 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.


Electromedical Technologies Degree of Operating Leverage Related Terms

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


Electromedical Technologies Business Description

Traded in Other Exchanges
N/A
Address
16413 North 91st Street, Suite C140, Scottsdale, AZ, USA, 85260
Electromedical Technologies Inc is a bioelectronics manufacturing company. It designs and develops simple-to-use bioelectronics therapy devices, which in major cases provide immediate and long-lasting pain relief across the broadest range of ailments. It focuses on improving global wellness for people suffering from various painful conditions. It develops and manufactures bioelectronics products.
Executives
Hymers Iii R. Leslie director 520 S GRAND AVENUE, STE 320, LOS ANGELES CA 90071
Lee Benson director PO BOX 41828, MESA AZ 41828
Donald J Steinberg 10 percent owner 3223 SUMAC ROAD, FALLBROOK CA 92028
Matthew Wolfson director, officer: CEO, CFO 16561 N. 92ND STREET, STE. 101, SCOTTSDALE AZ 85260