GURUFOCUS.COM » STOCK LIST » Technology » Hardware » OSI Systems Inc (NAS:OSIS) » Definitions » Degree of Operating Leverage

OSIS (OSI Systems) Degree of Operating Leverage : 0.87 (As of Mar. 2025)


View and export this data going back to 1997. Start your Free Trial

What is OSI Systems Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. OSI Systems's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.87. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

OSIS's Degree of Operating Leverage is ranked better than
52.77% of 2422 companies
in the Hardware industry
Industry Median: 1.045 vs OSIS: 0.87

OSI Systems Degree of Operating Leverage Historical Data

The historical data trend for OSI 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.

* Premium members only.

OSI Systems Degree of Operating Leverage Chart

OSI Systems Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.97 -6.09 9.23 -1.15 1.95

OSI 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 2.52 1.95 1.69 1.05 0.87

Competitive Comparison of OSI Systems's Degree of Operating Leverage

For the Electronic Components subindustry, OSI 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.


OSI Systems's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, OSI Systems's Degree of Operating Leverage distribution charts can be found below:

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


;
;

OSI Systems Degree of Operating Leverage Calculation

OSI 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
=( 207.32 (Mar. 2025) / 183.394 (Mar. 2024) - 1 )/( 1689.088 (Mar. 2025) / 1469.721 (Mar. 2024) - 1 )
=0.1305/0.1493
=0.87***

* 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.


OSI Systems  (NAS:OSIS) 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.


OSI Systems Degree of Operating Leverage Related Terms

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


OSI Systems Business Description

Industry
Traded in Other Exchanges
Address
12525 Chadron Avenue, Hawthorne, CA, USA, 90250
OSI Systems Inc is a designer and manufacturer of electronic systems and components for businesses in the homeland security, healthcare, defense, and aerospace markets. The firm is organized in three business segments: Security, which derives maximum revenue, provides security and inspection systems; Healthcare, which provides patient monitoring, diagnostic, cardiology, ventilation systems and defibrillators; and Optoelectronics and Manufacturing, which provides specialized electronic components and manufacturing services for the Security and Healthcare segments and external original equipment manufacturers. Majority of the firm's revenue is generated in the United States, and the rest from Mexico, Europe, the Middle East, and Africa, and the Asia Pacific regions.
Executives
Deepak Chopra director, officer: President and CEO 12525 CHADRON AVE, HAWTHORNE CA 90250
Paul Keith Morben officer: Pres., OSI Electronics 12525 CHADRON AVENUE, HAWTHORNE CA 90250
Gerald M Chizever director
Alan I Edrick officer: EVP & CFO 20200 SUNBURST STREET, CHATSWORTH CA 91311
Manoocher M Aliabadi officer: Pres., Optoelectronics Div 12525 CHADRON AVE, HAWTHORNE CA 90250
James B Hawkins director C/O IRADIMED CORPORATION, 1025 WILLA SPRINGS DR., WINTER SPRINGS FL 32708
Ballhaus William Francis Jr director 12525 CHADRON AVE, HAWTHORNE CA 90250
Shalabh Chandra officer: Pres., Spacelabs Healthcare C/O OSI SYSTEMS, INC., 12525 CHADRON AVENUE, HAWTHORNE CA 90250
Meyer/ Luskin director 1884 MANGO WAY, LOS ANGELES CA 90049
Victor S Sze officer: General Counsel 12525 CHADRON AVE, HAWTHORNE CA 90250
Glenn Grindstaff officer: Chief Human Resources Officer 12525 CHADRON AVENUE, HAWTHORNE CA 90250
Malcolm Peter Maginnis officer: Pres., Rapiscan Systems 12525 CHADRON AVENUE, HAWTHORNE CA 90250
Ajay Mehra director, officer: Executve Vice President 12525 CHADRON AVE, HAWTHORNE CA 90250
Steven C Good director 11755 WILSHIRE BOULEVARD, SUITE 1700, LOS ANGELES CA 90025
Kelli Bernard director 12525 CHADRON AVENUE, HAWTHORNE CA 90250