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TXMD (TherapeuticsMD) Degree of Operating Leverage : 1.12 (As of Sep. 2024)


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What is TherapeuticsMD Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. TherapeuticsMD's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 1.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TXMD's Degree of Operating Leverage is ranked worse than
52.36% of 955 companies
in the Drug Manufacturers industry
Industry Median: 0.88 vs TXMD: 1.12

TherapeuticsMD Degree of Operating Leverage Historical Data

The historical data trend for TherapeuticsMD'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.

TherapeuticsMD Degree of Operating Leverage Chart

TherapeuticsMD 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 0.12 -0.06 0.51 -0.04 1.83

TherapeuticsMD 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 1.82 1.83 1.29 1.16 1.12

Competitive Comparison of TherapeuticsMD's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, TherapeuticsMD'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.


TherapeuticsMD's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, TherapeuticsMD's Degree of Operating Leverage distribution charts can be found below:

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



TherapeuticsMD Degree of Operating Leverage Calculation

TherapeuticsMD'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
=( -4.898 (Sep. 2024) / 51.999 (Sep. 2023) - 1 )/( 1.596 (Sep. 2024) / 69.366 (Sep. 2023) - 1 )
=-1.0942/-0.977
=1.12***

* 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.


TherapeuticsMD  (NAS:TXMD) 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.


TherapeuticsMD Degree of Operating Leverage Related Terms

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


TherapeuticsMD Business Description

Traded in Other Exchanges
Address
951 Yamato Road, Suite 220, Boca Raton, FL, USA, 33431
TherapeuticsMD Inc is a pharmaceutical royalty company, currently receiving royalties on products licensed to pharmaceutical organizations that possess commercial capabilities in the relevant territories. The company and its subsidiaries (i) granted Mayne Pharma an exclusive license to commercialize its IMVEXXY, BIJUVA and prescription prenatal vitamin products sold under the BocaGreenMD and vitaMedMD brands (collectively, the "Licensed Products") in the United States and its possessions and territories, (ii) assigned to Mayne Pharma its exclusive license to commercialize ANNOVERA (together with the Licensed Products, collectively, the "Products") in the United States and its possessions and territories.
Executives
Collins Cooper C. director 33219 FOREST WEST DRIVE, MAGNOLIA TX 77354
Marlan D Walker officer: General Counsel 951 YAMATO ROAD, SUITE 220, BOCA RATON FL 33431
Joseph Ziegler officer: Principal Financial Officer 1051 HILLSBORO MILE, PH2, HILLSBORO BEACH FL 33062
Michael C Donegan officer: CAO and VP of Finance 6800 BROKEN SOUND PARKWAY NW, THIRD FLOOR, BOCA RATON FL 33487-3507
Rubric Capital Management Lp 10 percent owner 155 EAST 44TH ST, SUITE 1630, NEW YORK NY 10017
Brian Bernick director 951 BROKEN SOUND PARKWAY NW, SUITE 320, BOCA RATON FL 33487
Gail K Naughton director C. R. BARD, INC., 730 CENTRAL AVENUE, MURRAY HILL NJ 07974
Mark A Glickman officer: Chief Business Officer C/O ESPERION THERAPEUTICS, INC., 3891 RANCHERO DRIVE, SUITE 150, ANN ARBOR MI 48108
Justin Hunter Roberts director C/O RUBRIC CAPTIAL MANAGEMENT LP, 155 EAST 44TH ST., SUITE 1630, NEW YORK NY 10017
Tommy G Thompson director 7711 CARONDELET, ST. LOUIS MO 63105
Karen Ling director C/O FOREST LABORATORIES, INC., 909 THIRD AVENUE, NEW YORK NY 10022
Paul Bisaro director
Jules A. Musing director 9 INNOVATION WAY, SUITE 100, NEWARK DE 19711
Angus C. Russell director C/O INTERMUNE, INC., 3280 BAYSHORE BOULEVARD, BRISBANE CA 94005
David Efraim Rosen 10 percent owner 155 EAST 44TH ST., SUITE 1630, NEW YORK NY 10017