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TFX (Teleflex) Degree of Operating Leverage : -16.36 (As of Sep. 2024)


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What is Teleflex Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Teleflex's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -16.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TFX's Degree of Operating Leverage is ranked better than
92.17% of 792 companies
in the Medical Devices & Instruments industry
Industry Median: 0.605 vs TFX: -16.36

Teleflex Degree of Operating Leverage Historical Data

The historical data trend for Teleflex'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.

Teleflex Degree of Operating Leverage Chart

Teleflex Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.04 -0.43 4.22 28.61 0.58

Teleflex Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.13 0.58 -4.43 -7.53 -16.36

Competitive Comparison of Teleflex's Degree of Operating Leverage

For the Medical Instruments & Supplies subindustry, Teleflex'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.


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

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

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



Teleflex Degree of Operating Leverage Calculation

Teleflex's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 352.91 (Sep. 2024) / 561.799 (Sep. 2023) - 1 )/( 3025.824 (Sep. 2024) / 2958.576 (Sep. 2023) - 1 )
=-0.3718/0.0227
=-16.36***

* 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.


Teleflex  (NYSE:TFX) 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.


Teleflex Degree of Operating Leverage Related Terms

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


Teleflex Business Description

Traded in Other Exchanges
Address
550 East Swedesford Road, Suite 400, Wayne, PA, USA, 19087
Teleflex is a Wayne, Pennsylvania-based manufacturer of hospital supplies and medical devices primarily in the bloodstream/vascular and surgical areas. The firm reports results across seven segments: vascular access (24% of 2023 sales), interventional (17%), anesthesia (13%), surgical (14%), interventional urology (11%), original-equipment manufacturing (11%), and other (10%). Geographic exposure for the business is primarily in the US, which accounts for 60% of revenue, with international markets making up the remainder.
Executives
Stuart A Randle director 585 WEST 500 SOUTH, BOUNTIFUL UT 84010
Cameron P Hicks officer: Vice President, Global HR 550 E. SWEDESFORD ROAD, SUITE 400, WAYNE PA 19087
Liam Kelly officer: EVP & President, International IDA BUSINESS AND TECHNOLOGY PARK, DUBLIN ROAD, ATHLONE L2 00000
Thomas E Powell officer: Senior Vice President & CFO C/O TOMOTHERAPY INCORPORATED, 1240 DEMING WAY, MADISON WI 53717
Jaewon Ryu director 950 N. GLEBE ROAD, SUITE 700, ARLINGTON VA 22203
Neena M Patil director JAZZ PHARMACEUTICALS, 3170 PORTER DRIVE, PALO ALTO CA 94304
Andrew A Krakauer director CANTEL MEDICAL CORP., 150 CLOVE ROAD, 9TH FLOOR, LITTLE FALLS NJ 07424
Klasko Stephen K. M.d. director 155 SOUTH LIMERICK ROAD, LIMERICK PA 19468
Jay White officer: VP & Pres, Global Commercial 3015 CARRINGTON MILL BLVD., MORRISVILLE NC 27560
Daniel V. Logue officer: VP, Gen Counsel & Secretary 550 E. SWEDESFORD ROAD, SUITE 400, WAYNE PA 19087
John Deren officer: VP & Chief Accounting Officer 550 E. SWEDESFORD ROAD, SUITE 400, WAYNE PA 19087
James J Leyden officer: VP, General Counsel, Secretary C/O INFRASOURCE SERVICES, INC, 500 WEST DUTTON MILL ROAD, ASTON PA 19014
James Winters officer: Vice President, Mfg and Supply 550 E. SWEDESFORD ROAD, SUITE 400, WAYNE PA 19087
Mario Wijker officer: Vice President, QARA 550 E. SWEDESFORD ROAD, SUITE 400, WAYNE PA 19087
Benson Smith director C/O ROCHESTER MEDICAL INC, ONE ROCHESTER MEDICAL DDRIVE, STEWARTVILLE MN 55976