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NXL (Nexalin Technology) Degree of Operating Leverage : -2.57 (As of Mar. 2025)


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What is Nexalin Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Nexalin Technology's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.57. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NXL's Degree of Operating Leverage is ranked better than
79.82% of 798 companies
in the Medical Devices & Instruments industry
Industry Median: 0.625 vs NXL: -2.57

Nexalin Technology Degree of Operating Leverage Historical Data

The historical data trend for Nexalin Technology'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.

Nexalin Technology Degree of Operating Leverage Chart

Nexalin Technology Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- -1.97 -0.08 -2.23 0.74

Nexalin Technology Quarterly Data
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 -1.92 -1.87 1.22 0.74 -2.57

Competitive Comparison of Nexalin Technology's Degree of Operating Leverage

For the Medical Devices subindustry, Nexalin Technology'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.


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

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

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


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Nexalin Technology Degree of Operating Leverage Calculation

Nexalin Technology'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
=( -8.692 (Mar. 2025) / -5.931 (Mar. 2024) - 1 )/( 0.131 (Mar. 2025) / 0.16 (Mar. 2024) - 1 )
=0.4655/-0.1813
=-2.57***

* 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.


Nexalin Technology  (NAS:NXL) 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.


Nexalin Technology Degree of Operating Leverage Related Terms

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Nexalin Technology Business Description

Traded in Other Exchanges
N/A
Address
1776 Yorktown, Suite 550, Houston, TX, USA, 77056
Nexalin Technology Inc designs and develops neurostimulation products to uniquely and effectively help combat the ongoing mental health epidemic. The company has developed an easy-to-administer medical device referred to as Generation 1 or Gen-1 that utilizes bioelectronic medical technology to treat anxiety and insomnia, without the need for drugs or psychotherapy. Its original Gen-1 devices are cranial electrotherapy stimulation (CES) devices that emit waveform at 4 milliamps during treatment and are presently classified by the U.S. Food and Drug Administration (FDA) as a Class II device.
Executives
David Owens director, officer: Chief Medical Officer 4545 HARRIS TRAIL NW, ATLANTA GA 30327
Marilyn Elson 10 percent owner, officer: Ms. Elson serves as CFO 32 CAMLET COURT, ROSELAND NJ 07068
Rick Morad director 6331 CHAGRIN RIVER ROAD, BENTLEYVILLE OH 44022
Mark White director, officer: President/CEO 1776 YORKTOWN STREET, SUITE 550, HOUSTON TX 77056
Alan Kazden director 3435 CONSUELO DRIVE, CALABASAS CA 91302
Leonard Osser other: Spouse
Ben Hu director 7021 EDGERTON ROAD, NORTH ROYALTON OH 44133