GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Beam Therapeutics Inc (NAS:BEAM) » Definitions » Degree of Operating Leverage

BEAM (Beam Therapeutics) Degree of Operating Leverage : -1.66 (As of Mar. 2025)


View and export this data going back to 2020. Start your Free Trial

What is Beam Therapeutics Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Beam Therapeutics's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.66. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BEAM's Degree of Operating Leverage is ranked better than
77.16% of 880 companies
in the Biotechnology industry
Industry Median: -0.02 vs BEAM: -1.66

Beam Therapeutics Degree of Operating Leverage Historical Data

The historical data trend for Beam Therapeutics'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.

Beam Therapeutics Degree of Operating Leverage Chart

Beam Therapeutics Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 2.30 - -0.79 -0.09 -1.63

Beam Therapeutics 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 -0.13 -0.15 -0.16 -1.63 -1.66

Competitive Comparison of Beam Therapeutics's Degree of Operating Leverage

For the Biotechnology subindustry, Beam Therapeutics'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.


Beam Therapeutics's Degree of Operating Leverage Distribution in the Biotechnology Industry

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

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


;
;

Beam Therapeutics Degree of Operating Leverage Calculation

Beam Therapeutics'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
=( -430.722 (Mar. 2025) / -181.689 (Mar. 2024) - 1 )/( 63.578 (Mar. 2025) / 360.911 (Mar. 2024) - 1 )
=1.3707/-0.8238
=-1.66***

* 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.


Beam Therapeutics  (NAS:BEAM) 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.


Beam Therapeutics Degree of Operating Leverage Related Terms

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


Beam Therapeutics Business Description

Traded in Other Exchanges
Address
238 Main Street, Cambridge, MA, USA, 02142
Beam Therapeutics Inc is a biotechnology company committed to creating a new class of precision genetic medicines based on its proprietary base editing technology, with a vision of providing lifelong cures to patients suffering from serious diseases. The company is focused on its programs in the hematology and genetic disease portfolios, which comprise different product candidates in its pipeline, such as BEAM-101, which is being developed to target Sickle Cell Disease, BEAM-302, a liver-targeting lipid nanoparticle, being developed to target Alpha-1 antitrypsin deficiency, and other drug candidates including BEAM-302, BEAM-103 & 104. The company views its operations and manages its business in one operating segment, operating exclusively in the United States.
Executives
Amy Simon officer: Chief Medical Officer BEAM THERAPEUTICS, INC., 238 MAIN STREET, 9TH FL., CAMBRIDGE MA 02142
Christine Bellon officer: Chief Legal Officer BEAM THERAPEUTICS, INC., 238 MAIN STREET, 9TH FL., CAMBRIDGE MA 02142
John M. Evans director, officer: CEO C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Giuseppe Ciaramella officer: President & CSO C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Terry-ann Burrell officer: CFO C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Fmr Llc 10 percent owner, other: See Remark 1 245 SUMMER STREET, BOSTON MA 02210
John Maraganore director 75 SIDNEY ST, CAMBRIDGE MA 02139
Graham K Cooper director C/O RECEPTOS, INC., 10835 ROAD TO THE CURE, SUITE 205, SAN DIEGO CA 92121
Kathleen E Walsh director C/O LIFEMD, INC., 236 FIFTH AVENUE, SUITE 400, NEW YORK NY 10001
Arch Venture Fund Ix Overage, L.p. 10 percent owner 8725 W. HIGGINS ROAD, SUITE 290, CHICAGO IL 60631
Stephen C Knight director C/O EPIX MEDICAL INC, 71 ROGERS ST, CAMBRIDGE MA 02142
Mark Fishman director C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Arch Venture Partners Ix, Llc 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Keith Crandell 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Arch Venture Fund Ix, L.p. 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631