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SMTK (SmartKem) Degree of Operating Leverage : 0.02 (As of Mar. 2025)


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What is SmartKem Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. SmartKem's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.02. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SMTK's Degree of Operating Leverage is ranked better than
61.35% of 996 companies
in the Semiconductors industry
Industry Median: 0.98 vs SMTK: 0.02

SmartKem Degree of Operating Leverage Historical Data

The historical data trend for SmartKem'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.

SmartKem Degree of Operating Leverage Chart

SmartKem Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- -0.06 -0.35 -0.07 0.02

SmartKem 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 -0.03 0.12 0.01 0.02 0.02

Competitive Comparison of SmartKem's Degree of Operating Leverage

For the Semiconductor Equipment & Materials subindustry, SmartKem'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.


SmartKem's Degree of Operating Leverage Distribution in the Semiconductors Industry

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

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


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SmartKem Degree of Operating Leverage Calculation

SmartKem'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
=( -11.183 (Mar. 2025) / -9.897 (Mar. 2024) - 1 )/( 0.105 (Mar. 2025) / 0.011 (Mar. 2024) - 1 )
=0.1299/8.5455
=0.02***

* 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.


SmartKem  (NAS:SMTK) 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.


SmartKem Degree of Operating Leverage Related Terms

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


SmartKem Business Description

Industry
Traded in Other Exchanges
N/A
Address
Delaunays Road, Manchester Technology Center, Hexagon Tower, Blackley, Manchester, GBR, M9 8GQ
SmartKem Inc focuses on the design, development, industrialization, and technology transfer of low-temperature, solution-deposited organic semiconductors for transistor backplanes. The company's semiconductor platform can be used in several applications, including mini-LED displays, AMOLED displays, fingerprint sensors, and logic circuits. The company derives revenue from the sale of TRUFLEX inks and demonstration products.
Executives
Sriram Krishnamurthy Peruvemba director 12251 TOLUCA DRIVE, SAN RAMON CA 94583
Nigel Prue officer: Chief Accounting Officer C/O SMARTKEM, INC., HEXAGON TOWER, DELAUNAYS ROAD, BLACKLEY, MANCHESTER X0 M9 8GQ
Steven Denbaars director 9805 NORTHCROSS CENTER CT, SUITE H, HUNTERSVILLE NC 28078
Simon P. King director C/O SMARTKEM, INC., HEXAGON TOWER, DELAUNAYS ROAD, BLACKLEY, MANCHESTER X0 M9 8GQ
Barbra Keck director C/O DELCATH SYSTEMS, INC., 600 FIFTH AVENUE, NEW YORK NY 10020
Robert Bahns director, officer: Chief Financial Officer C/O SMARTKEM, INC., HEXAGON TOWER, DELAUNAYS ROAD, BLACKLEY, MANCHESTER X0 M9 8GQ
Boer Klaas De director C/O SMARTKEM, INC., HEXAGON TOWER, DELAUNAYS ROAD, BLACKLEY, MANCHESTER X0 M9 8GQ
Ian Jenks director, officer: Chairman & CEO C/O SMARTKEM, INC., HEXAGON TOWER, DELAUNAYS ROAD, BLACKLEY, MANCHESTER X0 M9 8GQ
Simon Ogier officer: Chief Technology Officer C/O SMARTKEM, INC., HEXAGON TOWER, DELAUNAYS ROAD, BLACKLEY, MANCHESTER X0 M9 8GQ
Beverley Brown officer: Chief Scientist C/O SMARTKEM, INC., HEXAGON TOWER, DELAUNAYS ROAD, BLACKLEY, MANCHESTER X0 M9 8GQ
Mark N. Tompkins other: Former Director and 10% Owner APP. 1, VIA GUIDINO 23, LUGANO-PARADISO V8 6900
Entrepreneurs Fund Lp 10 percent owner 2ND FLOOR, WINDWARD HOUSE, LA ROUTE DE LA LIBERATION, ST. HELIER Y9 JE2 3BQ
Entrepreneurs Fund General Partner Ltd 10 percent owner 2ND FLOOR WINWARD HOUSE, LA ROUTE DE LA LIBERATION, ST. HELIER Y9 JE2 3BQ
Ian Seth Jacobs other: Former Officer and Director 2255 GLADES RD., SUITE 324A, BOCA RATON FL 33431
Octopus Titan Vct Plc 10 percent owner 33 HOBORN, LONDON X0 EC1N 2HT