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GHSI (Guardion Health Sciences) Degree of Operating Leverage : -4.23 (As of Jun. 2024)


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What is Guardion Health Sciences Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Guardion Health Sciences's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was -4.23. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

GHSI's Degree of Operating Leverage is not ranked
in the Drug Manufacturers industry.
Industry Median: 0.62 vs GHSI: -4.23

Guardion Health Sciences Degree of Operating Leverage Historical Data

The historical data trend for Guardion Health 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.

Guardion Health Sciences Degree of Operating Leverage Chart

Guardion Health Sciences Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -8.86 -0.18 -0.02 -0.18 3.06

Guardion Health Sciences Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 0.83 1.55 3.06 1.71 -4.23

Competitive Comparison of Guardion Health Sciences's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Guardion Health 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.


Guardion Health Sciences's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Guardion Health Sciences's Degree of Operating Leverage distribution charts can be found below:

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


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Guardion Health Sciences Degree of Operating Leverage Calculation

Guardion Health Sciences's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -3.853 (Jun. 2024) / -5.81 (Jun. 2023) - 1 )/( 9.346 (Jun. 2024) / 8.656 (Jun. 2023) - 1 )
=-0.3368/0.0797
=-4.23***

* 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.


Guardion Health Sciences  (OTCPK:GHSI) 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.


Guardion Health Sciences Degree of Operating Leverage Related Terms

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


Guardion Health Sciences Business Description

Traded in Other Exchanges
N/A
Address
2925 Richmond Avenue, Suite 1200, Houston, TX, USA, 77098
Guardion Health Sciences Inc clinical nutrition company that develops and distributes clinically supported dietary supplements and medical foods. It offers a portfolio of science-based, clinically supported products designed to support consumers, healthcare professionals and providers, and their patients by supporting bone health, eye health, cardiovascular health, and brain health through nutrients such as Calcium, Vitamin D, Vitamin K, Carotenoids, and Omega-3s.
Executives
Bradley Louis Radoff 10 percent owner 2727 KIRBY DRIVE, UNIT 29L, HOUSTON TX 77098
Katharine Joan Cox officer: Chief Accounting Officer 2925 RICHMOND AVENUE, SUITE 1200, HOUSTON TX 77098
Janet Hall officer: CEO & President 2925 RICHMOND AVENUE, SUITE 1200, HOUSTON TX 77098
Family Foundation Radoff other: See Footnote 1 2727 KIRBY DRIVE, UNIT 29L, HOUSTON TX 77098
Michaela Griggs director 2925 RICHMOND AVENUE, SUITE 1200, HOUSTON TX 77098
Bret Scholtes director, officer: Chief Executive Officer 2105 CITY WEST BLVD., SUITE 500, HOUSTON TX 77042
Donald A Gagliano director 131 CARDINAL AVE, SAN ANTONIO TX 78209
Jeffrey S Benjamin officer: Chief Accounting Officer 3885 CRESTWOOD PARKWAY, SUITE 550, DULUTH GA 30096
Craig Sheehan officer: Chief Commercial Officer 15150 AVENUE OF SCIENCE, SUITE 200, SAN DIEGO CA 92128
Andrew C Schmidt officer: Chief Financial Officer 1700 CARNEGIE AVE, SUITE 100, SANTA ANA CA 92705
Kelly Anderson director C/O TOMI ENVIRONMENTAL SOLUTIONS, INC., 9454 WILSHIRE BLVD., R-1, BEVERLY HILLS CA 90212
David W Evans director, officer: Chief Scientific Officer 4141 JUTLAND DRIVE, SUITE 215, SAN DIEGO CA 92117
Tamara A Evans 10 percent owner 4141 JUTLAND DRIVE, SUITE 215, SAN DIEGO CA 92117
John Townsend other: Controller 15150 AVENUE OF SCIENCE, SUITE 200, SAN DIEGO CA 92128
Gordon Bethwaite officer: Vice Pres, Sales and Marketing 15150 AVENUE OF SCIENCE, SUITE 200, SAN DIEGO CA 92128