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SONX (Sonendo) Degree of Operating Leverage : 5.90 (As of Dec. 2024)


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What is Sonendo Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sonendo's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 5.90. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SONX's Degree of Operating Leverage is ranked worse than
81.83% of 798 companies
in the Medical Devices & Instruments industry
Industry Median: 0.625 vs SONX: 5.90

Sonendo Degree of Operating Leverage Historical Data

The historical data trend for Sonendo'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.

Sonendo Degree of Operating Leverage Chart

Sonendo Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.25 0.09 0.85 -0.24 5.90

Sonendo Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -0.24 0.34 -4.05 -3.97 5.90

Competitive Comparison of Sonendo's Degree of Operating Leverage

For the Medical Devices subindustry, Sonendo'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.


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

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

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


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Sonendo Degree of Operating Leverage Calculation

Sonendo'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
=( -28.069 (Dec. 2024) / -56.005 (Dec. 2023) - 1 )/( 31.702 (Dec. 2024) / 34.628 (Dec. 2023) - 1 )
=-0.4988/-0.0845
=5.90***

* 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.


Sonendo  (OTCPK:SONX) 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.


Sonendo Degree of Operating Leverage Related Terms

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


Sonendo Business Description

Traded in Other Exchanges
N/A
Address
26061 Merit Circle, Suite 102, Laguna Hills, CA, USA, 92653
Sonendo Inc is a commercial-stage medical technology company focused on saving teeth from tooth decay, the prevalent chronic disease globally. It has developed the GentleWave System, a technology platform designed to treat tooth decay by cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The company operates in two business segments, Product segment which derives key revenue, and Software. Product segment includes sales of the Company's GentleWave System console and related accessories and instruments. Software segment includes sales of the company's traditional software licenses for practice management software to enable an integrated digital office for endodontists.
Executives
Bjarne Bergheim director, officer: President and CEO C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Roy T Chen officer: Chief Talent Officer C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Olav Bergheim director, 10 percent owner ONE PALMER SQUARE, PRINCETON NJ 08542
Pudipeddi Vamsi Mohan Raj director 2820 ORCHARD PARKWAY, SAN JOSE CA 95134
Michael Patrick Watts officer: Chief Financial Officer C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Michael John Smith officer: Chief Commercial Officer C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Andrew J Kirkpatrick officer: Chief Operating Officer 1310 CHESAPEAKE TERRACE, SUNNYVALE CA 94089
General Atlantic, L.p. director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Bihl Anthony P Iii director 807 SMITH RIDGE ROAD, NEW CANAAN CT 06840
Mehrezad Khakpour officer: Chief Technology Officer C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Jacqueline Arnold Collins officer: VP, General Counsel C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Carolyn Beaver director 3595 JOHN HOPKINS COURT, SAN DIEGO CA 92121
General Atlantic (soi), L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY, LP, 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Partners (bermuda) Eu, L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY LP, 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Gap Coinvestments V, Llc 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055