What is Align Technology Degree of Operating Leverage?
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Align Technology's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 0.65. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Align Technology's Degree of Operating Leverage or its related term are showing as below:
ALGN's Degree of Operating Leverage is ranked better than 52.87% of 800
companies
in the Medical Devices & Instruments industry
Industry Median: 0.83
vs ALGN: 0.65
Align Technology Degree of Operating Leverage Historical Data
The historical data trend for Align Technology'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.
Align Technology Degree of Operating Leverage Chart
Competitive Comparison of Align Technology's Degree of Operating Leverage
For the Medical Instruments & Supplies subindustry, Align Technology'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.
Align Technology's Degree of Operating Leverage Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Align Technology's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Align Technology's Degree of Operating Leverage falls into.
* 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.
Align Technology (NAS:ALGN) 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.
Align Technology Degree of Operating Leverage Related Terms
Thank you for viewing the detailed overview of Align Technology's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Align Technology is the leading manufacturer of clear aligners. Invisalign, its main product, was approved by the Food and Drug Administration in 1998 and has since dominated, controlling over 90% of the market. Invisalign can treat roughly 90% of all malocclusion cases (misaligned teeth), and there are over 230,000 Invisalign-trained dentists and orthodontists. In 2022, Invisalign treated over 2 million cases, or roughly 10% of all orthodontic cases for the year, and it has treated over 14 million patients since its launch. Align also sells intraoral scanners under the brand iTero, which captures digital impressions of patients' teeth and illustrates treatment plans. Over 85% of Invisalign cases are submitted by digital scans, and iTero scans make up over half of these scans.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ALGN has been successfully added to your 