GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Harrow Inc (NAS:HROW) » Definitions » Degree of Operating Leverage

HROW (Harrow) Degree of Operating Leverage : -2.40 (As of Mar. 2025)


View and export this data going back to 2007. Start your Free Trial

What is Harrow Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Harrow's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HROW's Degree of Operating Leverage is ranked better than
71.58% of 950 companies
in the Drug Manufacturers industry
Industry Median: 0.64 vs HROW: -2.40

Harrow Degree of Operating Leverage Historical Data

The historical data trend for Harrow'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.

Harrow Degree of Operating Leverage Chart

Harrow Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 44.40 3.09 -20.83 -1.38 -6.17

Harrow 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 0.01 6.32 -6.87 -6.17 -2.40

Competitive Comparison of Harrow's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Harrow'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.


Harrow's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

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

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


;
;

Harrow Degree of Operating Leverage Calculation

Harrow'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
=( 2.384 (Mar. 2025) / -8.352 (Mar. 2024) - 1 )/( 212.858 (Mar. 2025) / 138.677 (Mar. 2024) - 1 )
=-1.2854/0.5349
=-2.40***

* 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.


Harrow  (NAS:HROW) 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.


Harrow Degree of Operating Leverage Related Terms

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


Harrow Business Description

Industry
Traded in Other Exchanges
N/A
Address
1A Burton Hills Boulevard, Suite 200, Nashville, TN, USA, 37215
Harrow Inc is an eyecare pharmaceutical company engaged in the discovery, development, and commercialization of ophthalmic pharmaceutical products for the U.S. market. The company helps U.S. eyecare professionals preserve the gift of sight by making its comprehensive portfolio of prescription and non-prescription pharmaceutical products accessible and affordable to millions of Americans. Its operating segments are The Branded segment includes activities of the Company's FDA-approved ophthalmology pharmaceutical products, including the out-licensing of rights to certain of branded products; and The ImprimisRx segment represents activities in the Company's ophthalmology-focused pharmaceutical compounding business.
Executives
Opaleye Management Inc. 10 percent owner ONE BOSTON PLACE, SUITE 2600, BOSTON MA 02108
Mark L Baum director, 10 percent owner, officer: Chief Executive Officer C/O IMPRIMIS PHARMACEUTICALS, INC, 12264 EL CAMINO REAL, SUITE 350, SAN DIEGO CA 92130
Martin A. Makary director 102 WOODMONT BLVD., SUITE 610, NASHVILLE TN 37205
Van Horn R. Lawrence director 354 COOL SPRINGS BLVD., SUITE 106, FRANKLIN TN 37067
Andrew Boll officer: VP, Accounting and Reporting 437 S HWY 101, STE 209, SOLANA BEACH CA 92075
Lindstrom Richard L Md director 2811 WESTWOOD PL, WAYZATA MN 55391
Perry J. Sternberg director 102 WOODMONT BLVD., SUITE 610, NASHVILLE TN 37205
Teresa Sparks director 40 BURTON HILLS BOULEVARD SUITE 500, NASHVILLE TN 37215
Robert J Kammer director, 10 percent owner, officer: Chairman of the Board 1440 28TH STREET, SUITE 9, BOULDER CO 80303
Longboard Capital Advisors, Llc other: Institutional Investor 9665 WILSHIRE BLVD., SUITE 430, BEVERLY HILLS CA 90212
Brett Conrad other: Managing Mbr of Longboard Cap. 1312 CEDAR ST., SANTA MONICA CA 90405
Clayton D Edwards officer: Chief Operating Officer 12264 EL CAMINO REAL, SUITE 350, SAN DIEGO CA 92130
Anthony Principi director 2300 WEST PLANO PARKWAY, M/S D2420, PLANO TX 75244
Donald Paul Miloni 10 percent owner 1425 GREENWOOD LANE, GREENWOOD VILLAGE CO 80125
John P. Saharek officer: Chief Commercial Officer 12264 EL CAMINO REAL, SUITE 350, SAN DIEGO CA 92130