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VCEL (Vericel) Degree of Operating Leverage : 6.73 (As of Mar. 2025)


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What is Vericel Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Vericel's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.73. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VCEL's Degree of Operating Leverage is ranked worse than
89.25% of 884 companies
in the Biotechnology industry
Industry Median: -0.02 vs VCEL: 6.73

Vericel Degree of Operating Leverage Historical Data

The historical data trend for Vericel'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.

Vericel Degree of Operating Leverage Chart

Vericel Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -24.50 -13.52 20.27 -4.40 -36.27

Vericel Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 -4.92 -5.82 -7.00 -36.27 6.73

Competitive Comparison of Vericel's Degree of Operating Leverage

For the Biotechnology subindustry, Vericel'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.


Vericel's Degree of Operating Leverage Distribution in the Biotechnology Industry

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

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


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Vericel Degree of Operating Leverage Calculation

Vericel's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 3.74 (Mar. 2025) / 1.873 (Mar. 2024) - 1 )/( 238.541 (Mar. 2025) / 207.78 (Mar. 2024) - 1 )
=0.9968/0.148
=6.73***

* 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.


Vericel  (NAS:VCEL) 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.


Vericel Degree of Operating Leverage Related Terms

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


Vericel Business Description

Industry
Traded in Other Exchanges
Address
64 Sidney Street, Cambridge, MA, USA, 02139
Vericel Corp is a fully integrated, commercial-stage biopharmaceutical company and a provider of therapies for the sports medicine and severe burn care markets. It markets cell therapy products in the United States, MACI (autologous cultured chondrocytes on porcine collagen membrane); Epicel (cultured epidermal autografts); and NexoBrid. The Company operates its business in the U.S. in one reportable segment; the research, product development, manufacture, and distribution of cellular therapies and specialty biologics for use in the treatment of specific conditions.
Executives
Dominick Colangelo director, officer: President and CEO 1000 WINTER ST., SUITE 2200, WALTHAM MA 02451
Kevin F Mclaughlin director C/O ACCELERON PHARMA INC., 128 SIDNEY STREET, CAMBRIDGE MA 02139
Jonathan Siegal officer: Principal Accounting Officer C/O VERICEL CORPORATION, 64 SIDNEY STREET, CAMBRIDGE MA 02139
Sean C. Flynn officer: SVP, General Counsel C/O VERICEL CORPORATION, 64 SIDNEY ST., CAMBRIDGE MA 02139
Zerbe Robert L Md director
Paul K Wotton director C/O ANTARES PHARMA, INC., 707 EAGLEVIEW BOULEVARD, SUITE 414, EXTON PA 19341
Jonathan Mark Hopper officer: Chief Medical Officer 64 SIDNEY STREET, CAMBRIDGE MA 02139
Steven C Gilman director 110 HARTWELL AVENUE, LEXINGTON MA 02421
Mara Joseph Anthony Jr officer: Chief Financial Officer C/O VERICEL CORPORATION, 64 SIDNEY STREET, CAMBRIDGE MA 02139
Michael Halpin officer: Chief Operating Officer C/O VERICEL CORPORATION, 64 SIDNEY ST., CAMBRIDGE MA 02139
Lisa Wright director C/O VERICEL CORPORATION, 64 SIDNEY STREET, CAMBRIDGE MA 02139
Sandra Pennell officer: VP and Corporate Controller C/O VERICEL CORPORATION, 64 SIDNEY STREET, CAMBRIDGE MA 02139
Gerard J Michel officer: CFO & VP , Corp. Development 420 CHIPETA WAY, SALT LAKE CITY UT 84108
Daniel Orlando officer: Chief Operating Officer P.O. BOX 376, ANN ARBOR MI 48105
Alan L Rubino director PO BOX 376, LOBBY L., ANN ARBOR MI 48105