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OM (Outset Medical) Degree of Operating Leverage : 5.07 (As of Mar. 2025)


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What is Outset Medical Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Outset Medical's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OM's Degree of Operating Leverage is ranked worse than
79.7% of 798 companies
in the Medical Devices & Instruments industry
Industry Median: 0.64 vs OM: 5.07

Outset Medical Degree of Operating Leverage Historical Data

The historical data trend for Outset Medical'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.

Outset Medical Degree of Operating Leverage Chart

Outset Medical Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.37 0.09 1.80 0.02 2.74

Outset Medical 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 -1.17 1.32 2.11 2.74 5.07

Competitive Comparison of Outset Medical's Degree of Operating Leverage

For the Medical Devices subindustry, Outset Medical'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.


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

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

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


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Outset Medical Degree of Operating Leverage Calculation

Outset Medical'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
=( -91.908 (Mar. 2025) / -152.576 (Mar. 2024) - 1 )/( 115.273 (Mar. 2025) / 125.077 (Mar. 2024) - 1 )
=-0.3976/-0.0784
=5.07***

* 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.


Outset Medical  (NAS:OM) 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.


Outset Medical Degree of Operating Leverage Related Terms

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Outset Medical Business Description

Traded in Other Exchanges
N/A
Address
3052 Orchard Drive, San Jose, CA, USA, 95134
Outset Medical Inc is a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis. The Company generates revenue from the sales of Tablo consoles and related consumables, including Tablo cartridges and accessories.
Executives
Leslie Trigg director, officer: President & CEO C/O OUTSET MEDICAL, 1830 BERING ROAD, SAN JOSE CA 95112
Marc Nash officer: SVP, Operations and R&D 3052 ORCHARD DRIVE, SAN JOSE CA 95134
Nabeel Ahmed officer: Interim CFO 3052 ORCHARD DRIVE, SAN JOSE CA 95134
John L. Brottem officer: General Counsel 3052 ORCHARD DR., SAN JOSE CA 95134
D Keith Grossman director
Jean-olivier Racine officer: Chief Technology Officer 3052 ORCHARD DRIVE, SAN JOSE CA 95134
Steven S. Williamson officer: Chief Commercial Officer C/O HOLOGIC, INC., BEDFORD MA 01730
Stacey L. Porter officer: Chief People Officer 3052 ORCHARD DRIVE, SAN JOSE CA 95134
Martin Vazquez officer: Chief Operating Officer 3052 ORCHARD DR., SAN JOSE CA 95134
James F. Hinrichs director 3750 TORREY VIEW COURT, SAN DIEGO CA 92130
Dale E Jones director C/O HUGHES SUPPLY INC, 20 N ORANGE AVE, ORLANDO FL 32801
Rebecca Chambers officer: Chief Financial Officer 3052 ORCHARD DR., SAN JOSE CA 95134
Catherine M. Szyman director C/O EDWARDS LIFESCIENCES CORPORATION, ONE EDWARDS WAY, IRVINE CA 92614
Warburg Pincus Llc director, 10 percent owner 450 LEXINGTON AVENUE, NEW YORK NY 10017
Warburg Pincus X, L.p. director, 10 percent owner C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017