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ARDX (Ardelyx) Degree of Operating Leverage : -0.34 (As of Mar. 2025)


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What is Ardelyx Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ardelyx's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.34. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ARDX's Degree of Operating Leverage is ranked better than
62.01% of 887 companies
in the Biotechnology industry
Industry Median: -0.02 vs ARDX: -0.34

Ardelyx Degree of Operating Leverage Historical Data

The historical data trend for Ardelyx'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.

Ardelyx Degree of Operating Leverage Chart

Ardelyx 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 0.01 2.17 -0.14 -0.06 -0.40

Ardelyx 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 -0.06 0.03 2.26 -0.40 -0.34

Competitive Comparison of Ardelyx's Degree of Operating Leverage

For the Biotechnology subindustry, Ardelyx'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.


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

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

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


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Ardelyx Degree of Operating Leverage Calculation

Ardelyx'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
=( -30.46 (Mar. 2025) / -54.223 (Mar. 2024) - 1 )/( 361.706 (Mar. 2025) / 159.11 (Mar. 2024) - 1 )
=-0.4382/1.2733
=-0.34***

* 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.


Ardelyx  (NAS:ARDX) 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.


Ardelyx Degree of Operating Leverage Related Terms

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


Ardelyx Business Description

Industry
Traded in Other Exchanges
Address
400 Fifth Avenue, Suite 210, Waltham, MA, USA, 02451
Ardelyx Inc is a biopharmaceutical company developing and commercialize, first-in-class medicines that meet unmet medical needs. It has developed a platform that enabled the discovery of new biological mechanisms and pathways to develop potent and efficacious therapies that minimize the side effects and drug-drug interactions frequently encountered with traditional, systemically absorbed medicines. It product Tenapanor, branded as IBSRELA, is used for the treatment of adults with IBS-C. Tenapanor, branded as XPHOZAH, is used to reduce serum phosphorus in adults with CKD on dialysis as add-on therapy in patients who have an inadequate response to phosphate binders or who are intolerant of any dose of phosphate binder therapy.
Executives
Michael Raab director, officer: President & CEO 1119 ST PAUL STREET, BALTIMORE MD 21202
David M Mott director 1119 ST. PAUL STREET, BALTIMORE MD 21202
Laura A Williams officer: Chief Medical Officer 116 HUNTINGTON AVENUE, 6TH FLOOR, BOSTON MA 02116
Justin A Renz officer: Chief Financial Officer C/O KARYOPHARM THERAPEUTICS INC., 85 WELLS AVENUE, SECOND FLOOR, NEWTON MA 02459
Elizabeth A Grammer officer: See Remarks 78TH FOURTH AVENUE, WALTHAM MA 02451
Robert Blanks officer: See Remarks C/O ARDELYX, 34175 ARDENWOOD BLVD., FREMONT CA 94555
David P. Rosenbaum officer: Chief Development Officer C/O ARDELYX, INC., 34175 ARDENWOOD BLVD, SUITE 100, FREMONT CA 94555
Robert Ora Felsch officer: See Remarks C/O ARDELYX, INC., 34175 ARDENWOOD BLVD., FREMONT CA 94555
Susan Rodriguez officer: Chief Commercial Officer C/O ARDELYX, INC., 34175 ARDENWOOD BLVD, SUITE 200, FREMONT CA 94555
Forest Baskett 10 percent owner
Scott D Sandell 10 percent owner
Jeffrey W Jacobs officer: VP, Chemistry C/O ARDELYX, INC., 34175 ARDENWOOD BLVD, SUITE 100, FREMONT CA 94555
Muna Bhanji director C/O CYTOKINETICS, INCORPORATED, 280 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Keith Santorelli officer: See Remarks C/O ARDELYX, INC. 34175 ARDENWOOD BLVD, FREMONT CA 94555
Onaiza Cadoret-manier director 2855 GAZELLE COURT, C/O IONIS PHARMACEUTICALS, INC., CARLSBAD CA 92010