GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Rockwell Medical Inc (NAS:RMTI) » Definitions » Degree of Operating Leverage

RMTI (Rockwell Medical) Degree of Operating Leverage : -8.87 (As of Mar. 2025)


View and export this data going back to 1998. Start your Free Trial

What is Rockwell Medical Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Rockwell Medical's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -8.87. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RMTI's Degree of Operating Leverage is ranked better than
85.73% of 946 companies
in the Drug Manufacturers industry
Industry Median: 0.84 vs RMTI: -8.87

Rockwell Medical Degree of Operating Leverage Historical Data

The historical data trend for Rockwell 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.

Rockwell Medical Degree of Operating Leverage Chart

Rockwell Medical 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 -10.24 -10.46 -2.55 -4.27 -5.27

Rockwell 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 -3.50 -3.01 -4.96 -5.27 -8.87

Competitive Comparison of Rockwell Medical's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Rockwell 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.


Rockwell Medical's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Rockwell Medical's Degree of Operating Leverage distribution charts can be found below:

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


;
;

Rockwell Medical Degree of Operating Leverage Calculation

Rockwell 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
=( 0.836 (Mar. 2025) / -6.075 (Mar. 2024) - 1 )/( 97.727 (Mar. 2025) / 86.62 (Mar. 2024) - 1 )
=-1.1376/0.1282
=-8.87***

* 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.


Rockwell Medical  (NAS:RMTI) 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.


Rockwell Medical Degree of Operating Leverage Related Terms

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


Rockwell Medical Business Description

Traded in Other Exchanges
Address
30142 S. Wixom Road, Wixom, MI, USA, 48393
Rockwell Medical Inc is a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products for dialysis providers. It is a supplier of liquid bicarbonate concentrates, and acid and dry bicarbonate concentrates for dialysis patients in the United States. The company's products include CitraPure citric acid concentrate, RenalPure liquid acid concentrate, and SteriLyte bicarbonate concentrate among others.
Executives
Jesse Neri officer: SVP, FINANCE 851 DUPORTAIL ROAD, SECOND FLOOR, CHESTERBROOK PA 19087
Mark Strobeck director, officer: President and CEO 460 EAST SWEDESFORD ROAD, SUITE 1050, WAYNE PA 19087
Mark H Ravich other: See Footnote 1
Joan Lau director C/O RENOVACOR, INC., 5 MEAD POINT DRIVE, GREENWICH CT 06830
Russell Skibsted officer: See Remarks 15 TRANQUILITY PLACE, LADERA RANCH CA 92694
Megan C. Timmins officer: SVP, General Counsel 600 LEE ROAD, SUITE 100, WAYNE PA 19087
Allen Nissenson director 601 HAWAII ST., EL SEGUNDO CA 90245
Robert S Radie director 101 LINDENWOOD DRIVE, SUITE 225, MALVERN PA 19355
Andrea Heslin Smiley director 600 LEE ROAD, SUITE 100, WAYNE PA 19087
David S. Richmond 10 percent owner, other: See Footnote 1 3568 WILDWOOD AVENUE, JACKSON MI 49202
Russell H Ellison director 270 RIVERSIDE DR., APT. 12D, NEW YORK NY 10025
Marc L Hoffman officer: Chief Medical Officer 30142 WIXOM ROAD, WIXOM MI 48393
John Peter Mclaughlin director C/O PDL BIOPHARMA, INC., 932 SOUTHWOOD BOULEVARD, INCLINE VILLAGE NV 89451
Richmond Brothers, Inc. 10 percent owner, other: See Footnote 1 7415 FOXWORTH COURT, JACKSON MI 49201
Stuart M Paul director, officer: Chief Executive Officer HOME DIAGNOSTICS, INC., 2400 NW 55TH COURT, FORT LAUDERDALE FL 33309