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NVCR (NovoCure) Degree of Operating Leverage : -1.69 (As of Mar. 2025)


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What is NovoCure Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. NovoCure's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.69. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NVCR's Degree of Operating Leverage is ranked better than
76.41% of 797 companies
in the Medical Devices & Instruments industry
Industry Median: 0.65 vs NVCR: -1.69

NovoCure Degree of Operating Leverage Historical Data

The historical data trend for NovoCure'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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NovoCure Degree of Operating Leverage Chart

NovoCure 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 14.90 -28.73 117.01 -26.42 -1.91

NovoCure 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 37.75 -2.60 -3.16 -1.91 -1.69

Competitive Comparison of NovoCure's Degree of Operating Leverage

For the Medical Devices subindustry, NovoCure'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.


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

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

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


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NovoCure Degree of Operating Leverage Calculation

NovoCure'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
=( -117.164 (Mar. 2025) / -169.692 (Mar. 2024) - 1 )/( 621.711 (Mar. 2025) / 525.659 (Mar. 2024) - 1 )
=-0.3095/0.1827
=-1.69***

* 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.


NovoCure  (NAS:NVCR) 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.


NovoCure Degree of Operating Leverage Related Terms

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


NovoCure Business Description

Traded in Other Exchanges
Address
Grenville Street, No. 4 The Forum, Second Floor, St. Helier, JEY, JE2 4UF
NovoCure Ltd is an oncology company with a propreitary platform technology in United States. Its business involves the development, manufacture and commercialization of Tumor Treating Fields (TTFields) devices, including Optune Gio and Optune Lua, for the treatment of solid tumor cancers. Its pipeline consists of Trident, Lunar-2, Panova-3, Metis and other products and technologies for the treatment of Glioblastoma, Non-smell cell lung cancer and Pancreatic cancer. Geographically, the company derives majority of its revenue from the United States and rest from Germany, Japan and other markets.
Executives
Frank X Leonard officer: President, CNS Cancers US 20 VALLEY STREAM PARKWAY,, SUITE 300, MALVERN PA 19355
Ashley Cordova officer: Chief Financial Officer 20 VALLEY STREAM PARKWAY,, SUITE 300, MALVERN PA 19355
Uri Weinberg officer: Chief Innovation Officer NOVOCURE INC., 20 VALLEY STREAM PARKWAY, SUITE 300, MALVERN PA 19355
Michal Nath Puri officer: Chief Human Resources Officer BUSINESS VILLAGE D4, PARK 6/PLATZ10, ROOT V8 6039
W Anthony Vernon director C/O AXOVANT SCIENCES, INC., 320 WEST 37TH STREET, NEW YORK NY 10018
Gabriel Leung director C/O PERNIX THERAPEUTICS HOLDINGS, INC., 10 NORTH PARK PLACE, SUITE 201, MORRISTOWN NJ 07960
Timothy J Scannell director 2825 AIRVIEW BOULEVARD, KALAMAZOO MI 49002
Wilhelmus Cm Groenhuysen officer: Chief Financial Officer C/O NAVTEQ CORPORATION, 222 MERCHANDISE MART STE 900, CHICAGO IL 60654
Pritesh Shah officer: Chief Commercial Officer C/O NOVOCURE INC., 20 VALLEY STREAM PARKWAY, SUITE 300, MALVERN PA 19355
Arye Barak Ben officer: General Counsel TOPAZ BUILDING, 4TH FLOOR, MATAM CENTER, PO BOX 15022, SH'AR HACARMEL, HAIFA L3 31905
Kristin Stafford director 1550 LIBERTY RIDGE DRIVE, SUITE 115, WAYNE PA 19087
William Patrick Burke officer: Chief Human Resources Officer 195 COMMERCE WAY, PORTSMOUTH NH 03801
Allyson J Ocean director 1550 LIBERTY RIDGE DRIVE, SUITE 115, WAYNE PA 19087
Asaf Danziger director, officer: Chief Executive Officer 5 NACHUM CHAT ST., TIRAT HACARMEL L3 5112302
Ely Benaim officer: Chief Medical Officer C/O REXAHN PHARMACEUTICALS, INC., 15245 SHADY GROVE ROAD, SUITE 455, ROCKVILLE MD 20850