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INSP (Inspire Medical Systems) Degree of Operating Leverage : -20.73 (As of Mar. 2025)


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What is Inspire Medical Systems Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Inspire Medical Systems's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -20.73. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

INSP's Degree of Operating Leverage is ranked better than
93.88% of 801 companies
in the Medical Devices & Instruments industry
Industry Median: 0.66 vs INSP: -20.73

Inspire Medical Systems Degree of Operating Leverage Historical Data

The historical data trend for Inspire Medical Systems'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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Inspire Medical Systems Degree of Operating Leverage Chart

Inspire Medical Systems 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 1.89 -0.27 0.09 -1.00 -13.82

Inspire Medical Systems 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 -1.58 -3.29 -5.32 -13.82 -20.73

Competitive Comparison of Inspire Medical Systems's Degree of Operating Leverage

For the Medical Devices subindustry, Inspire Medical Systems'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.


Inspire Medical Systems's Degree of Operating Leverage Distribution in the Medical Devices & Instruments Industry

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

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


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Inspire Medical Systems Degree of Operating Leverage Calculation

Inspire Medical Systems'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
=( 72.208 (Mar. 2025) / -15.626 (Mar. 2024) - 1 )/( 840.111 (Mar. 2025) / 660.912 (Mar. 2024) - 1 )
=-5.621/0.2711
=-20.73***

* 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.


Inspire Medical Systems  (NYSE:INSP) 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.


Inspire Medical Systems Degree of Operating Leverage Related Terms

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


Inspire Medical Systems Business Description

Traded in Other Exchanges
Address
5500 Wayzata Boulevard, Suite 1600, Golden Valley, MN, USA, 55416
Inspire Medical Systems Inc operates as a medical technology company. It focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA). It offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. The firm has operating footprints in the United States and Europe wherein, it generates a majority of its revenue from the United States.
Executives
John Rondoni officer: Chief Technology Officer C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Randy Ban officer: Senior VP. & Sales & Marketing C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Shawn Mccormick director 9600-54TH AVENUE NORTH, SUITE 100, PLYMOUTH MN 55441
Richard Buchholz officer: Chief Financial Officer C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Timothy P. Herbert director, 10 percent owner, officer: CEO and President C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Jerry C Griffin director 887L INDUSTRIAL ROAD, SAN CARLOS CA 94070
Charisse Y Sparks director C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Carlton Weatherby officer: Chief Strategy Officer C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Steven Jandrich officer: Chief Comp Off & VP, Human Res C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Philip Ebeling officer: Chief Operating Officer INSPIRE MEDICAL SYSTEMS, INC., 5500 WAYZATA BLVD., SUITE 1600, GOLDEN VALLEY MN 55416
Marilyn C Nelson director C/O EXXON MOBIL CORP, 5959 LAS COLINAS BLVD., IRVING TX 75039-2298
Cynthia Burks director C/O INSPIRE MEDICAL SYSTEMS, INC., 9700 63RD AVENUE NORTH, SUITE 200, MAPLE GROVE MN 55369
Georgia Melenikiotou director C/O INSPIRE MEDICAL SYSTEMS, INC., 5500 WAYZATA BOULEVARD, SUITE 1600, GOLDEN VALLEY MN 55416
Bryan K Phillips officer: See Remarks 9924 WEST 74TH STREET, EDEN PRAIRIE MN 55344
Shelley G. Broader director 880 CARILLON PARKWAY, ST. PETERSBURG FL 33702