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EMMA (Emmaus Life Sciences) Degree of Operating Leverage : 2.46 (As of Mar. 2025)


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What is Emmaus Life Sciences Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Emmaus Life Sciences's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.46. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EMMA's Degree of Operating Leverage is ranked worse than
79.66% of 880 companies
in the Biotechnology industry
Industry Median: -0.02 vs EMMA: 2.46

Emmaus Life Sciences Degree of Operating Leverage Historical Data

The historical data trend for Emmaus Life Sciences'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.

Emmaus Life Sciences Degree of Operating Leverage Chart

Emmaus Life Sciences Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.75 25.74 5.26 -2.70 2.88

Emmaus Life Sciences 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 -9.33 -1.81 -1.43 2.88 2.46

Competitive Comparison of Emmaus Life Sciences's Degree of Operating Leverage

For the Biotechnology subindustry, Emmaus Life Sciences'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.


Emmaus Life Sciences's Degree of Operating Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Emmaus Life Sciences's Degree of Operating Leverage distribution charts can be found below:

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


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Emmaus Life Sciences Degree of Operating Leverage Calculation

Emmaus Life Sciences'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
=( 0.443 (Mar. 2025) / 3.046 (Mar. 2024) - 1 )/( 16.553 (Mar. 2025) / 25.35 (Mar. 2024) - 1 )
=-0.8546/-0.347
=2.46***

* 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.


Emmaus Life Sciences  (OTCPK:EMMA) 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.


Emmaus Life Sciences Degree of Operating Leverage Related Terms

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Emmaus Life Sciences Business Description

Traded in Other Exchanges
N/A
Address
21250 Hawthorne Boulevard, Suite 800, Torrance, CA, USA, 90503
Emmaus Life Sciences Inc is a biopharmaceutical company engaged in the discovery, development, and commercialization of new treatments and therapies predominantly for rare and orphan diseases. The company's commercial product is Endari, an oral pharmaceutical grade L-glutamine treatment indicated to reduce acute complications of sickle cell disease in adult and pediatric patients five years of age and older. Its products in the pipeline include Diverticulosis and Cell Sheet Engineering.
Executives
Seah H. Lim director 21250 HAWTHORNE BLVD., SUITE 800, TORRANCE CA 90503
Willis C Lee director, officer: Vice Chairman & COO 20725 S. WESTERN AVE., SUITE 136, TORRANCE CA 90501
Yutaka Niihara director, 10 percent owner, officer: Chairman and CEO 20725 S. WESTERN BLVD., SUITE 136, TORRANCE CA 90501
Lori Teranishi director 1000 BISHOP STREET, SUITE 500, HONOLULU HI 96813
Charles William Stark officer: SVP, Clinical Development 21250 HAWTHORNE BOULEVARD, SUITE 800, TORRANCE CA 90503
George Sekulich officer: CIO & SVP 21250 HAWTHORNE BOULEVARD, SUITE 800, TORRANCE CA 90503
Lui Alfred Fu Kong director 21250 HAWTHORNE BOULEVARD, SUITE 800, TORRANCE CA 90503
Jane Pine Wood director 956 MAIN STREET, DENNIS MA 02638
Wei Peu Zen director 21250 HAWTHORNE BLVD., SUITE 800, TORRANCE CA 90503
Sherwood Joseph Charles Iii officer: Chief Financial Officer 21250 HAWTHORNE BLVD., SUITE 800, TORRANCE CA 90503
Masaharu Osato director 3440 LOMITA BOULEVARD, SUITE 320, TORRANCE CA 90505
Ian Harvey Zwicker director 21250 HAWTHORNE BOULEVARD, SUITE 800, TORRANCE CA 90503
Lan T. Tran officer: Chief Administrative Officer 20725 S. WESTERN AVE., SUITE 136, TORRANCE CA 90501
Robert Iv Dickey director 320 WEST MERMAID LANE, PHILADELPHIA PA 19118
Yasushi Nagasaki officer: Sr. VP Finance 20725 S. WESTERN AVE., SUITE 136, TORRANCE CA 90501