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VMD (Viemed Healthcare) Degree of Operating Leverage : 1.32 (As of Mar. 2025)


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What is Viemed Healthcare Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Viemed Healthcare's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.32. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

VMD's Degree of Operating Leverage is ranked worse than
61.15% of 798 companies
in the Medical Devices & Instruments industry
Industry Median: 0.625 vs VMD: 1.32

Viemed Healthcare Degree of Operating Leverage Historical Data

The historical data trend for Viemed Healthcare'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.

Viemed Healthcare Degree of Operating Leverage Chart

Viemed Healthcare Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only 2.99 4.62 -1.90 2.44 0.84

Viemed Healthcare 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 2.73 1.58 0.99 0.84 1.32

Competitive Comparison of Viemed Healthcare's Degree of Operating Leverage

For the Medical Devices subindustry, Viemed Healthcare'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.


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

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

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


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Viemed Healthcare Degree of Operating Leverage Calculation

Viemed Healthcare'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
=( 19.088 (Mar. 2025) / 15.097 (Mar. 2024) - 1 )/( 232.793 (Mar. 2025) / 194.045 (Mar. 2024) - 1 )
=0.2644/0.1997
=1.32***

* 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.


Viemed Healthcare  (NAS:VMD) 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.


Viemed Healthcare Degree of Operating Leverage Related Terms

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


Viemed Healthcare Business Description

Traded in Other Exchanges
Address
625 E. Kaliste Saloom Road, Lafayette, LA, USA, 70508
Viemed Healthcare Inc is a provider of medical equipment and home therapy to patients with respiratory disease, oxygen problems, sleep apnea and PAP treatment. The company also provides services such as respiratory disease management, neuromuscular care, in-home sleep testing and sleep apnea treatment, oxygen therapy, respiratory equipment rentals, and healthcare staffing services. The company generates majority its revenue from medical equipment rental, sales and supply.
Executives
Timothy Smokoff director 625 E KALISTE SALOOM RD, LAFAYETTE LA 70508
Nitin Kaushal director 625 E KALISTE SALOOM RD, LAFAYETTE LA 70508
Randy E. Dobbs director C/O VIEMED HEALTHCARE, INC, 625 E. KALISTE SALOOM RD, LAFAYETTE LA 70508
Sabrina Heltz director 625 E. KALISTE SALOOM ROAD, LAFAYETTE LA 70508
Jeremy Trahan officer: Chief Legal Officer 625 E. KALISTE SALOOM RD., LAFAYETTE LA 70508
Bruce D Greenstein director 901 HUGH WALLIS ROAD SOUTH, LAFAYETTE LA 70508
William Todd Zehnder director, officer: Chief Operating Officer 400 E. KALISTE SALOOM ROAD, SUITE 6000, LAFAYETTE LA 70508
Casey Hoyt director, officer: Chief Executive Officer 625 E. KALISTE SALOOM RD., LAFAYETTE LA 70508
Michael Moore officer: President 625 E. KALISTE SALOOM RD., LAFAYETTE LA 70508
Trae Fitzgerald officer: Chief Financial Officer 625 E KALISTE SALOOM RD, LAFAYETTE LA 70508
William Frazier director, officer: Chief Medical Officer 625 E KALISTE SALOOM RD, LAFAYETTE LA 70508
Jerome Cambre officer: Vice President of Sales 625 E KALISTE SALOOM RD, LAFAYETTE LA 70508
Ewell Patrick Eagan officer: General Counsel 625 E. KALISTE SALOOM ROAD, LAFAYETTE LA 70508