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STRM (Streamline Health Solutions) Degree of Operating Leverage : 2.59 (As of Jan. 2025)


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What is Streamline Health Solutions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Streamline Health Solutions's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 2.59. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

STRM's Degree of Operating Leverage is ranked worse than
70.47% of 640 companies
in the Healthcare Providers & Services industry
Industry Median: 0.52 vs STRM: 2.59

Streamline Health Solutions Degree of Operating Leverage Historical Data

The historical data trend for Streamline Health Solutions'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.

Streamline Health Solutions Degree of Operating Leverage Chart

Streamline Health Solutions Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.82 0.18 1.40 -7.31 2.59

Streamline Health Solutions Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 -7.31 -5.86 -5.11 2.61 2.59

Competitive Comparison of Streamline Health Solutions's Degree of Operating Leverage

For the Health Information Services subindustry, Streamline Health Solutions'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.


Streamline Health Solutions's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Streamline Health Solutions's Degree of Operating Leverage distribution charts can be found below:

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


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Streamline Health Solutions Degree of Operating Leverage Calculation

Streamline Health Solutions's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -8.146 (Jan. 2025) / -17.672 (Jan. 2024) - 1 )/( 17.901 (Jan. 2025) / 22.596 (Jan. 2024) - 1 )
=-0.539/-0.2078
=2.59***

* 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.


Streamline Health Solutions  (NAS:STRM) 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.


Streamline Health Solutions Degree of Operating Leverage Related Terms

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


Streamline Health Solutions Business Description

Traded in Other Exchanges
N/A
Address
2400 Old Milton Parkway, Box 1353, Alpharetta, GA, USA, 30009
Streamline Health Solutions Inc provides transformational data-driven solutions for healthcare organizations. It provides computer software-based solutions through its looking glass platform. Its solutions include coding and CDI, coding audit, and financial management solutions. It offers various services, such as custom integration services, training services, electronic image conversion and database monitoring services. It sells its solutions and services in North America to hospitals and health systems, including physician practices, through its direct sales force and its reseller partnerships.
Executives
Benjamin Louis Stilwill officer: President 4512 BAKER STREET, PHILADELPHIA PA 19127
Reeves Bryant J Iii officer: Interim CFO 2400 OLD MILTON PARKWAY, BOX 1353, ALPHARETTA GA 30009
Kenan Lucas director C/O HARBERT MANAGEMENT CORPORATION, 2100 THIRD AVENUE NORTH, SUITE 600, BIRMINGHAM AL 35203
Wendy L Lucio officer: Chief People Officer 101 ABBY LANE, CARROLLTON GA 30117
Tamarack Global Healthcare Fund Qp, L.p. other: Member of a group 5050 AVENIDA ENCINAS, SUITE 360, CARLSBAD CA 92008
David Driscoll officer: SVP & Chief Revenue Officer 1175 PEACHTREE STREET NE, 10TH FLOOR, ATLANTA GA 30361
Raymond J Harbert 10 percent owner 2100 THIRD AVENUE NORTH, SUITE 600, BIRMINGHAM AL 35203
Tamarack Capital Gp, Llc 10 percent owner 5050 AVENIDA ENCINAS, SUITE 360, CARLSBAD CA 92008
Tamarack Advisers, Lp 10 percent owner 5050 AVENIDA ENCINAS, SUITE 360, CARLSBAD CA 92008
Tamarack Capital Management, Llc 10 percent owner 5050 AVENIDA ENCINAS, SUITE 360, CARLSBAD CA 92008
Tamarack Global Healthcare Fund, L.p. 10 percent owner 5050 AVENIDA ENCINAS, SUITE 360, CARLSBAD CA 92008
Justin John Ferayorni 10 percent owner 5050 AVENIDA ENCINAS, SUITE 360, CARLSBAD CA 92008
Judith Starkey director 1327 PEACHTREE STREET, UNIT 803, ATLANTA GA 30309
Jonathan R Phillips director 792 CHATHAM AVENUE, ELMHURST IL 60126
Green Wyche T Iii director P.O. BOX 1510, FRANKLIN GA 30217