GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Harmony Biosciences Holdings Inc (NAS:HRMY) » Definitions » Degree of Operating Leverage

HRMY (Harmony Biosciences Holdings) Degree of Operating Leverage : 0.09 (As of Mar. 2025)


View and export this data going back to 2020. Start your Free Trial

What is Harmony Biosciences Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Harmony Biosciences Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.09. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HRMY's Degree of Operating Leverage is ranked worse than
53.75% of 880 companies
in the Biotechnology industry
Industry Median: -0.02 vs HRMY: 0.09

Harmony Biosciences Holdings Degree of Operating Leverage Historical Data

The historical data trend for Harmony Biosciences Holdings'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.

Harmony Biosciences Holdings Degree of Operating Leverage Chart

Harmony Biosciences Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -0.04 -7.94 2.32 1.81 0.27

Harmony Biosciences Holdings 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 1.64 0.59 -0.19 0.27 0.09

Competitive Comparison of Harmony Biosciences Holdings's Degree of Operating Leverage

For the Biotechnology subindustry, Harmony Biosciences Holdings'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.


Harmony Biosciences Holdings's Degree of Operating Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Harmony Biosciences Holdings's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Harmony Biosciences Holdings Degree of Operating Leverage Calculation

Harmony Biosciences Holdings'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
=( 213.993 (Mar. 2025) / 209.962 (Mar. 2024) - 1 )/( 744.852 (Mar. 2025) / 617.511 (Mar. 2024) - 1 )
=0.0192/0.2062
=0.09***

* 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.


Harmony Biosciences Holdings  (NAS:HRMY) 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.


Harmony Biosciences Holdings Degree of Operating Leverage Related Terms

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


Harmony Biosciences Holdings Business Description

Traded in Other Exchanges
N/A
Address
630 W. Germantown Pike, Suite 215, Plymouth Meeting, PA, USA, 19462
Harmony Biosciences Holdings Inc is a commercial-stage pharmaceutical company focused on developing and commercializing therapies for patients living with rare neurological diseases who have unmet medical needs. The company's product WAKIX (pitolisant) is a molecule with a novel mechanism of action specifically designed to increase histamine signaling in the brain by binding to H3 receptors and is used for the treatment of cataplexy in adult patients with narcolepsy. The other drug candidates in its pipeline are Pitolisant, HBS-102 (MCHR1 antagonist), BP1.15205 (orexin-2 receptor agonist), ZYN002 (cannabidiol gel), EPX-100 (clemizole hydrochloride), and EPX-200 (lorcaserin), among others.
Executives
Sandip Kapadia officer: Chief Financial Officer 450 WEST 15 STREET, SUITE 505, NEW YORK NY 10011
Jeffrey Dierks officer: Chief Commercial Officer 630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Jeffrey M. Dayno officer: Chief Medical Officer 460 EAST SWEDESFORD ROAD, SUITE 1050, WAYNE PA 19087
Marshman Fund Trust Ii 10 percent owner 630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Valor Iv Pharma Holdings, Llc 10 percent owner 875 N. MICHIGAN AVENUE, SUITE 3214, CHICAGO IL 60611
Peter Anastasiou director C/O HARMONY BIOSCIENCES HOLDINGS, INC., 630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Andreas Wicki director C/O HBM BIOVENTURES (CAYMAN) LTD., CENTENNIAL TOWERS,STE.305,2454 W.BAY RD., GRAND CAYMAN E9 E9
Jack Nielsen director C/O AKEBIA THERAPEUTICS, INC., 245 FIRST STREET, SUITE 1100, CAMBRIDGE MA 02142
Andrew Serafin officer: Chief Business Officer 630 W. GERMANTOWN PIKE, PLYMOUTH MEETING PA 19462
John C Jacobs director, officer: President, CEO 630 W. GERMANTOWN PIKE, SUITE 215, PLYMOUTH MEETING PA 19462
Linda M Szyper director C/O NEOS THERAPEUTICS, INC., 2940 N. HIGHWAY 250, SUITE 400, GRAND PRAIRIE TX 75050
Eric L Motley director 1516 33RD STREET NW, WASHINGTON DC 20007
R. Mark Graf director C/O DISCOVER FINANCIAL SERVICES, 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Novo Holdings A/s 10 percent owner TUBORG HAVNEVEJ 19, HELLERUP G7 2900
Valor Management L.p. 10 percent owner 875 N. MICHIGAN AVENUE, SUITE 3214, CHICAGO IL 60611