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ACLX (Arcellx) Degree of Operating Leverage : -5.80 (As of Mar. 2025)


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What is Arcellx Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Arcellx's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -5.80. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ACLX's Degree of Operating Leverage is ranked better than
88.65% of 881 companies
in the Biotechnology industry
Industry Median: -0.02 vs ACLX: -5.80

Arcellx Degree of Operating Leverage Historical Data

The historical data trend for Arcellx'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.

Arcellx Degree of Operating Leverage Chart

Arcellx Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial - - - - -26.62

Arcellx Quarterly Data
Dec19 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 -0.12 -0.21 -0.31 -26.62 -5.80

Competitive Comparison of Arcellx's Degree of Operating Leverage

For the Biotechnology subindustry, Arcellx'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.


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

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

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


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Arcellx Degree of Operating Leverage Calculation

Arcellx'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
=( -159.897 (Mar. 2025) / -46.806 (Mar. 2024) - 1 )/( 76.809 (Mar. 2025) / 131.663 (Mar. 2024) - 1 )
=2.4162/-0.4166
=-5.80***

* 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.


Arcellx  (NAS:ACLX) 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.


Arcellx Degree of Operating Leverage Related Terms

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


Arcellx Business Description

Industry
Traded in Other Exchanges
N/A
Address
800 Bridge Parkway, Suite A, Redwood, CA, USA, 94065
Arcellx Inc a clinical-stage biotechnology company reimagining cell therapy through the development of immunotherapies for patients with cancer and other incurable diseases. Its pipeline includes Multiple Myeloma, Acute Myeloid Leukemia, Non-Oncology, and Solid Tumors.
Executives
Michelle Gilson officer: Chief Financial Officer 25 WEST WATKINS MILL ROAD, SUITE A, GAITHERSBURG MD 20878
Kavita Patel director C/O TESARO, INC., 1000 WINTER STREET, SUITE 3300, WALTHAM MA 02451
Rami Elghandour director, officer: See Remarks 15 BARCELONA CIR, REDWOOD CITY CA 94065
Christopher Heery officer: Chief Medical Officer C/O PRECISION BIOSCIENCES, INC., 302 E. PETTIGREW STREET, SUITE A-100, DURHAM NC 27701
Olivia C Ware director 11726 SAN VICENTE BLVD, SUITE 650, LOS ANGELES CA 90049
Jill Carroll director C/O APPLIED GENETIC TECHNOLOGIES CORP., 11801 RESEARCH DRIVE, SUITE D, ALACHUA FL 32615
Sr One Capital Fund I Aggregator Lp 10 percent owner C/O DESIGN THERAPEUTICS, INC., 6005 HIDDEN VALLEY ROAD, SUITE 110, CARLSBAD CA 92011
Scott D Sandell 10 percent owner
Forest Baskett 10 percent owner
Mohamad Makhzoumi 10 percent owner 2855 SAND HILL ROAD, MENLO PARK CA 94025
Florence Anthony A. Jr. 10 percent owner 5425 WISCONSIN AVENUE, SUITE 800, CHEVY CHASE MD 20815
New Enterprise Associates 15, L.p. 10 percent owner 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Sr One Capital Management, Llc 10 percent owner 985 OLD EAGLE SCHOOL ROAD, SUITE 511, WAYNE PA 19087
Sr One Co-invest Ii Manager, Llc 10 percent owner 985 OLD EAGLE SCHOOL ROAD, SUITE 511, WAYNE PA 19087
Novo Holdings A/s 10 percent owner TUBORG HAVNEVEJ 19, HELLERUP G7 2900