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CDNA (CareDx) Degree of Operating Leverage : -2.27 (As of Mar. 2025)


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What is CareDx Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. CareDx's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CDNA's Degree of Operating Leverage is ranked better than
78.74% of 207 companies
in the Medical Diagnostics & Research industry
Industry Median: 0.45 vs CDNA: -2.27

CareDx Degree of Operating Leverage Historical Data

The historical data trend for CareDx'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.

CareDx Degree of Operating Leverage Chart

CareDx 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 -0.54 1.25 18.65 -2.76 -2.39

CareDx 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 -1.78 2.12 -7.11 -2.39 -2.27

Competitive Comparison of CareDx's Degree of Operating Leverage

For the Diagnostics & Research subindustry, CareDx'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.


CareDx's Degree of Operating Leverage Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, CareDx's Degree of Operating Leverage distribution charts can be found below:

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


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CareDx Degree of Operating Leverage Calculation

CareDx'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
=( -42.429 (Mar. 2025) / -102.985 (Mar. 2024) - 1 )/( 346.421 (Mar. 2025) / 275.111 (Mar. 2024) - 1 )
=-0.588/0.2592
=-2.27***

* 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.


CareDx  (NAS:CDNA) 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.


CareDx Degree of Operating Leverage Related Terms

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


CareDx Business Description

Traded in Other Exchanges
Address
8000 Marina Boulevard, Brisbane, CA, USA, 94005
CareDx Inc operates as a precision medicine company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. It offers testing services, products, and digital solutions along with the pre- and post-transplant patient journey and is a provider of genomics-based information for transplant patients. The Company's commercially available testing services consist of AlloSure Kidney, AlloMap Heart, AlloSure Heart, a dd-cfDNA solution for heart transplant patients, and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. Geographically the company generates the majority of its revenue from the United States. The company generates the majority of revenue from the Testing services.
Executives
Christine Cournoyer director 150 SHAW ROAD, CHESTNUT MA 02467
Peter Maag director, officer: President and CEO CAREDX, INC., 3260 BAYSHORE BOULEVARD, BRISBANE CA 94005
Abhishek Jain officer: See Remarks C/O CAREDX, INC., 1 TOWER PLACE, 9TH FLOOR, SOUTH SAN FRANCISCO CA 94080
George Bickerstaff director C/O VION PHARMACEUTICALS, INC., 4 SCIENCE PARK, NEW HAVEN CT 06511
Alexander L Johnson officer: Chief Business Officer C/O DIADEXUS, INC., 349 OYSTER POINT BOULEVARD, SOUTH SAN FRANCISCO CA 94080
Reginald Seeto officer: See Remarks C/O ARDELYX, INC., 34175 ARDENWOOD BLVD, SUITE 200, FREMONT CA 94555
Abraham Ronai officer: See Remarks C/O CAREDX, INC., 8000 MARINA BLVD, BRISBANE CA 94005
Grace Colon director C/O CAREDX, INC., 3260 BAYSHORE BOULEVARD, BRISBANE CA 94005
Michael Goldberg director 3000 SAND HILL ROAD, BUILDING 3, SUITE 290, MENLO PARK CA 94025
Ankur Dhingra officer: Chief Financial Officer C/O CAREDX, INC., 1 TOWER PLACE, 9TH FLOOR, SOUTH SAN FRANCISCO CA 94080
Arthur A Torres director 87 BVENA VISTA TERRACE, SAN FRANCISCO CA 94117
Hannah Valantine director 1305 O'BRIEN DRIVE, MENLO PARK CA 94025
Sasha King officer: Chief Commercial Officer C/O CAREDX, INC., 3260 BAYSHORE BOULEVARD, BRISBANE CA 94005
William A Hagstrom director 320 WAKARA WAY, SALT LAKE CITY UT 84108
Ralph Snyderman director C/O SAIC, 10260 CAMPUS POINT DR M/S F3, SAN DIEGO CA 92121