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NURO (NeuroMetrix) Degree of Operating Leverage : -0.47 (As of Dec. 2024)


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What is NeuroMetrix Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. NeuroMetrix's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -0.47. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NURO's Degree of Operating Leverage is ranked better than
66.58% of 799 companies
in the Medical Devices & Instruments industry
Industry Median: 0.59 vs NURO: -0.47

NeuroMetrix Degree of Operating Leverage Historical Data

The historical data trend for NeuroMetrix'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.

NeuroMetrix Degree of Operating Leverage Chart

NeuroMetrix 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 4.00 0.76 2,958.08 -1.78 -0.47

NeuroMetrix Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -1.78 -1.86 -1.30 -0.99 -0.47

Competitive Comparison of NeuroMetrix's Degree of Operating Leverage

For the Medical Devices subindustry, NeuroMetrix'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.


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

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

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


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NeuroMetrix Degree of Operating Leverage Calculation

NeuroMetrix's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -8.782 (Dec. 2024) / -7.152 (Dec. 2023) - 1 )/( 3.033 (Dec. 2024) / 5.901 (Dec. 2023) - 1 )
=0.2279/-0.486
=-0.47***

* 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.


NeuroMetrix  (NAS:NURO) 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.


NeuroMetrix Degree of Operating Leverage Related Terms

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


NeuroMetrix Business Description

Traded in Other Exchanges
N/A
Address
4B Gill Street, Woburn, MA, USA, 01801
NeuroMetrix Inc is a commercial-stage healthcare company. Its core business activities are integrated with in-house capabilities spanning product development, manufacturing, regulatory affairs and compliance, sales and marketing, and customer support. The company produces bioelectrical and digital medicine to address chronic health conditions including chronic pain, sleep disorders, and diabetes. The product line of the company includes Wearable neuro-stimulation therapeutic devices and Point-of-care neuropathy diagnostic tests. The company operates in a single segment being Medical device.
Executives
Bradley M Fluegel director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Thomas T Higgins officer: Chief Financial Officer
Topline Capital Management, Llc other: See Explanation in Footnotes 544 EUCLID STREET, SANTA MONICA CA 90402
Topline Capital Partners, Lp 10 percent owner 544 EUCLID STREET, SANTA MONICA CA 90402
Mcbirney Collin other: See Explanation in Footnotes 544 EUCLID STREET, SANTA MONICA CA 90402
Shai Gozani director, officer: Chairman, President and CEO C/O NEUROMETRIX, INC., 62 FOURTH AVENUE, WALTHAM MA 02451
Francis X Mcgillin officer: Senior VP, Consumer C/O NEUROMETRIX, INC., 62 FOURTH AVENUE, WALTHAM MA 02451
Avermaete David Van director C/O NEUROMETRIX, INC., 62 FOURTH AVENUE, WALTHAM MA 02451
Krishnamurthy Balachandran officer: S. VP and GM, International C/O NEUROMETRIX, INC., 62 FOURTH AVENUE, WALTHAM MA 02451
Nancy E Katz director CALYPTE BIOMEDICAL CORP, 1265 HARBOR BAY PKWY, ALAHEDA CA 94502
Neurometrix Inc officer: Senior Vice President & GM
Walter Christensen officer: Sr. VP, Global Sales C/O NEUROMETRIX, INC., 62 FOURTH AVENUE, WALTHAM MA 02451
Timothy R Surgenor director 100 FOXBOROUGH BOULEVARD, SUITE 240, FOXBOROUGH MA 02035
Deerfield Management Company, L.p. (series C) 10 percent owner 345 PARK AVENUE SOUTH, 12TH FLOOR, NEW YORK NY 10010
Deerfield Mgmt L.p. 10 percent owner 780 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017