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CYTK (Cytokinetics) Degree of Operating Leverage : 0.03 (As of Mar. 2025)


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What is Cytokinetics Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Cytokinetics's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CYTK's Degree of Operating Leverage is ranked worse than
52.89% of 881 companies
in the Biotechnology industry
Industry Median: -0.02 vs CYTK: 0.03

Cytokinetics Degree of Operating Leverage Historical Data

The historical data trend for Cytokinetics'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.

Cytokinetics Degree of Operating Leverage Chart

Cytokinetics 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 -0.06 4.20 2.38 -0.42 0.05

Cytokinetics 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 -0.26 0.03 -0.09 0.05 0.03

Competitive Comparison of Cytokinetics's Degree of Operating Leverage

For the Biotechnology subindustry, Cytokinetics'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.


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

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

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


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Cytokinetics Degree of Operating Leverage Calculation

Cytokinetics'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
=( -523.122 (Mar. 2025) / -468.85 (Mar. 2024) - 1 )/( 19.218 (Mar. 2025) / 3.752 (Mar. 2024) - 1 )
=0.1158/4.1221
=0.03***

* 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.


Cytokinetics  (NAS:CYTK) 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.


Cytokinetics Degree of Operating Leverage Related Terms

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


Cytokinetics Business Description

Industry
Traded in Other Exchanges
Address
350 Oyster Point Boulevard, South San Francisco, CA, USA, 94080
Cytokinetics Inc is a late-stage biopharmaceutical company focused on discovering, developing and commercializing first-in-class muscle activators and next-in-class muscle inhibitors as potential treatments for debilitating diseases in which muscle performance is compromised and/or declining. The company develops treatments for diseases such as amyotrophic lateral sclerosis, heart failure, spinal muscular atrophy, and chronic obstructive pulmonary diseases. The treatment is based on small molecules specifically engineered to increase muscle function and contractility. The company is developing muscle-directed investigational medicines that may potentially improve the health span of people with devastating cardiovascular and neuromuscular diseases of impaired muscle function.
Executives
Fady Ibraham Malik officer: SVP Research & Early Dev 280 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Robert I Blum officer: EVP, Corp. Development & CBO 280 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Muna Bhanji director C/O CYTOKINETICS, INCORPORATED, 280 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Andrew Callos officer: EVP, Chief Commercial Officers C/O CYTOKINETICS, INCORPORATED, 280 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Wendall Wierenga director 12790 EL CAMINO REAL, C/O NEUROCRINE BIOSCIENCES, SAN DIEGO CA 92130
John T Henderson director 320 WAKARA WAY, SALT LAKE CITY UT 84108
Robert Arthur Harrington director C/O CYTOKINETICS, INCORPORATED, 350 OYSTER POINT BLVD., SOUTH SAN FRANCISCO CA 94080
B Lynne Parshall director 2855 GAZELLE COURT, CARLSBAD CA 92010
Robert Wong officer: VP, Chief Accounting Officer 280 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Ching Jaw officer: SVP Finance & CFO 280 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Sandford D Smith director C/O ARIAD PHARMACEUTICALS INC, 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
Santo J Costa director
Kaye Edward M. Md director 3450 MONTE VILLA PARKWAY, BOTHELL WA 98011
Mark A Schlossberg officer: SVP - Legal & General Counsel C/O IMPAX LABORATORIES, INC., 30831 HUNTWOOD AVENUE, HAYWARD CA 94544
David Cragg officer: V.P., Human Resources 280 EAST GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080