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Professional Medical Expertise Co (SAU:9574) Degree of Operating Leverage : 0.82 (As of Dec. 2024)


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What is Professional Medical Expertise Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Professional Medical Expertise Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 0.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SAU:9574's Degree of Operating Leverage is ranked worse than
53.63% of 798 companies
in the Medical Devices & Instruments industry
Industry Median: 0.64 vs SAU:9574: 0.82

Professional Medical Expertise Co Degree of Operating Leverage Historical Data

The historical data trend for Professional Medical Expertise Co'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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Professional Medical Expertise Co Degree of Operating Leverage Chart

Professional Medical Expertise Co Annual Data
Trend Dec22 Dec23 Dec24
Degree of Operating Leverage
- 0.79 0.82

Professional Medical Expertise Co Semi-Annual Data
Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage - - 0.79 - 0.82

Competitive Comparison of Professional Medical Expertise Co's Degree of Operating Leverage

For the Medical Devices subindustry, Professional Medical Expertise Co'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.


Professional Medical Expertise Co's Degree of Operating Leverage Distribution in the Medical Devices & Instruments Industry

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

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


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Professional Medical Expertise Co Degree of Operating Leverage Calculation

Professional Medical Expertise Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 41.189 (Dec. 2024) / 34.143 (Dec. 2023) - 1 )/( 313.17 (Dec. 2024) / 250.116 (Dec. 2023) - 1 )
=0.2064/0.2521
=0.82***

* 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.


Professional Medical Expertise Co  (SAU:9574) 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.


Professional Medical Expertise Co Degree of Operating Leverage Related Terms

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Professional Medical Expertise Co Business Description

Traded in Other Exchanges
N/A
Address
Prince Saud Al-Faisal Street, Office No. 503, 5th Floor, Rawdah Bussiness Center, Rawdah District, Jeddah, SAU, 23434
Professional Medical Expertise Co is a medical devices distributor in the Saudi market, representing selected top-notch quality suppliers of inventive state of the art medical technologies. The Company's current activities comprise the import and export of medical implants, devices and high-tech consumables and their sale to private and public hospitals and medical centers throughout the Kingdom. It activities consist of the following: Agents involved in the sale of medicines, Drug warehouse activities, Retail sale of medical equipment, tools and supplies, Medical Devices warehouse activities and Legal representation of medical products and devices' manufacturers. The Group operates in the Kingdom of Saudi Arabia (KSA) which gives key revenue and United Arab of Emirates (UAE).

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