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EQ (Equillium) Degree of Operating Leverage : -1.08 (As of Mar. 2025)


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What is Equillium Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Equillium's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.08. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EQ's Degree of Operating Leverage is ranked better than
72.84% of 880 companies
in the Biotechnology industry
Industry Median: -0.02 vs EQ: -1.08

Equillium Degree of Operating Leverage Historical Data

The historical data trend for Equillium'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.

Equillium Degree of Operating Leverage Chart

Equillium Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial - - - -0.62 -2.64

Equillium 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 -1.10 -2.05 -4.22 -2.64 -1.08

Competitive Comparison of Equillium's Degree of Operating Leverage

For the Biotechnology subindustry, Equillium'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.


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

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

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


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Equillium Degree of Operating Leverage Calculation

Equillium'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
=( -13.842 (Mar. 2025) / -11.407 (Mar. 2024) - 1 )/( 30.406 (Mar. 2025) / 37.894 (Mar. 2024) - 1 )
=0.2135/-0.1976
=-1.08***

* 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.


Equillium  (NAS:EQ) 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.


Equillium Degree of Operating Leverage Related Terms

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


Equillium Business Description

Industry
Traded in Other Exchanges
Address
2223 Avenida De La Playa, Suite 105, La Jolla, CA, USA, 92037
Equillium Inc is a clinical-stage biotechnology company engaged in developing novel therapeutics to treat severe autoimmune and inflammatory, or immuno-inflammatory, disorders with high unmet medical need. The company intends to commercialize its product candidates either independently or through partnerships, or otherwise monetize its pipeline through strategic transactions. Itolizumab (EQ001), a clinical-stage product candidate, is an anti-CD6 immune-modifying monoclonal antibody, or mAb, that selectively targets the CD6-ALCAM signaling pathway to downregulate pathogenic T effector cells while preserving T regulatory cells critical for maintaining a balanced immune response. The company's other clinical-stage and pre-clinical-stage candidates include EQ101 and EQ302.
Executives
Jason A Keyes officer: Chief Financial Officer 3344 NORTH TORREY PINES COURT, SUITE 200, LA JOLLA CA 92037
Christine Zedelmayer officer: Sr. Vice President and COO 2223 AVENIDA DE LA PLAYA, SUITE 105, LA JOLLA CA 92037
Barbara Troupin director C/O EQUILLIUM, INC., 2223 AVENIDA DE LA PLAYA, SUITE 105, LA JOLLA CA 92037
Stephen Connelly director, officer: Chief Scientific Officer 2223 AVENIDA DE LA PLAYA, SUITE 108, LA JOLLA CA 92037
Decheng Capital Management Iv (cayman), Llc 10 percent owner P.O. BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104
Decheng Capital Global Life Sciences Fund Iv, L.p. 10 percent owner C/O MAPLES CORPORATE SERVICES LIMITED, UGLAND HOUSE, P.O. BOX 309, GRAND CAYMAN E9 KY1-1104
Xiangmin Cui 10 percent owner NO. 14 EAST HUSHAN ROAD, TAI'AN CITY, SHANDONG F4 000000
Yu (katherine) Xu director P.O. BOX 309, UGLAND HOUSE, GRAND CAYMAN E9 KY1-1104
Joel Rothman officer: Chief Development Officer 2223 AVENIDA DE LA PLAYA, SUITE 105, LA JOLLA CA 92037
Dolca Thomas officer: Chief Medical Officer C/O PRINCIPIA BIOPHARMA INC., 220 E. GRAND AVENUE, SOUTH SAN FRANCISCO CA 94080
Bala S Manian director 1025 TERRA BELLA AVE, MOUNTAIN VIEW CA 94043
Charles Douglas Mcdermott director 100 BEAVER STREET, SUITE 201, WALTHAM MA 02453
Krishna R Polu officer: Chief Medical Officer C/O RAPTOR PHARMACEUTICAL CORP, 7 HAMILTON LANDING, SUITE 100, NOVATO CA 94949
Sa Biocon 10 percent owner CO BDO SA, RUE DE LAVENIR 2, DELEMONT V8 2800
Bruce D. Steel director, officer: President, CBO C/O ZOSANO PHARMA CORPORATION, 34790 ARDENTECH COURT, FREMONT CA 94555