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VAPO (Vapotherm) Degree of Operating Leverage : -7.07 (As of Jun. 2024)


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What is Vapotherm Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Vapotherm's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was -7.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VAPO's Degree of Operating Leverage is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 0.59 vs VAPO: -7.07

Vapotherm Degree of Operating Leverage Historical Data

The historical data trend for Vapotherm'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.

Vapotherm Degree of Operating Leverage Chart

Vapotherm Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial 1.26 0.01 -2.27 -1.89 -21.92

Vapotherm Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 0.97 12.41 -21.92 -5.88 -7.07

Competitive Comparison of Vapotherm's Degree of Operating Leverage

For the Medical Devices subindustry, Vapotherm'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.


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

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

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


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Vapotherm Degree of Operating Leverage Calculation

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

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -30.344 (Jun. 2024) / -64.533 (Jun. 2023) - 1 )/( 70.919 (Jun. 2024) / 65.976 (Jun. 2023) - 1 )
=-0.5298/0.0749
=-7.07***

* 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.


Vapotherm  (OTCPK:VAPO) 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.


Vapotherm Degree of Operating Leverage Related Terms

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Vapotherm Business Description

Traded in Other Exchanges
N/A
Address
100 Domain Drive, Exeter, NH, USA, 03833
Vapotherm Inc is a medical technology company based in the United States. It is mainly engaged in the development and commercialization of its proprietary Hi-VNI technology products that are used to treat patients of all ages suffering from respiratory distress. The company offers four versions of its Precision Flow systems: Precision Flow Hi-VNI, Precision Flow Plus, Precision Flow Classic, Precision Flow Heliox and others. It generates revenue from sales of products to hospitals through a direct sales organization in the United States and distributors in select countries outside of the United States.
Executives
James W Liken director 5 DEER SPRING LANE, PITTSBURGH PA 15211
Joseph Army director, officer: President and CEO ONE WASHINGTON CENTER, SUITE 400, DOVER NH 03820
Anthony L. Arnerich director 100 DOMAIN DRIVE, EXETER NH 03833
Dorota Mckay officer: Chief Accounting Officer 100 DOMAIN DRIVE, EXETER NH 03833
John Landry officer: See Remarks 100 DOMAIN DRIVE, EXETER NH 03833
Lance A Berry director 5677 AIRLINE ROAD, ARLINGTON TN 38002
Elizabeth H Weatherman director C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Richard R Barrera 10 percent owner 767 THIRD AVENUE, 29TH FLOOR, NEW YORK NY 10017
Roystone Capital Holdings Llc 10 percent owner 767 THIRD AVENUE, 29TH FLOOR, NEW YORK NY 10017
Roystone Capital Management Lp 10 percent owner 780 THIRD AVENUE, 41ST FLOOR, NEW YORK NY 10017
Brian Lawrence officer: SVP & Chief Technology Officer 100 DOMAIN DRIVE, EXETER NH 03833
Prescott General Partners Llc 10 percent owner, other: Member of Section 13(d) Group 2200 BUTTS ROAD, SUITE 320, BOCA RATON FL 33431
Gregoire Ramade officer: Vice President, International 100 DOMAIN DRIVE, EXETER NH 03833
Joel F. Dube officer: Chief Accounting Officer 100 DOMAIN DRIVE, EXETER NH 03833
Donald J Spence director C/O OAKMONT ACQUISITION CORP., 33 BLOOMFIELD HILLS PARKWAY, SUITE 240, BLOOMFIELD HILLS MI 48304