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FTRE (Fortrea Holdings) Degree of Operating Leverage : -1,208.41 (As of Mar. 2025)


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What is Fortrea Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Fortrea Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1,208.41. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FTRE's Degree of Operating Leverage is ranked better than
99.66% of 881 companies
in the Biotechnology industry
Industry Median: -0.02 vs FTRE: -1208.41

Fortrea Holdings Degree of Operating Leverage Historical Data

The historical data trend for Fortrea Holdings'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.

Fortrea Holdings Degree of Operating Leverage Chart

Fortrea Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 1.80 -5.14 -396.27 85.56

Fortrea Holdings Quarterly Data
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 -50.10 -74.59 -110.56 85.56 -1,208.41

Competitive Comparison of Fortrea Holdings's Degree of Operating Leverage

For the Biotechnology subindustry, Fortrea Holdings'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.


Fortrea Holdings's Degree of Operating Leverage Distribution in the Biotechnology Industry

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

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


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Fortrea Holdings Degree of Operating Leverage Calculation

Fortrea Holdings'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
=( -635.5 (Mar. 2025) / -11.6 (Mar. 2024) - 1 )/( 2685.6 (Mar. 2025) / 2810.7 (Mar. 2024) - 1 )
=53.7845/-0.0445
=-1,208.41***

* 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.


Fortrea Holdings  (NAS:FTRE) 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.


Fortrea Holdings Degree of Operating Leverage Related Terms

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


Fortrea Holdings Business Description

Traded in Other Exchanges
Address
8 Moore Drive, Durham, NC, USA, 27709
Fortrea Holdings is a late-stage contract research organization, or CRO, that provides comprehensive Phase I through IV clinical trial management, clinical pharmacology, and patient access solutions. The company works with emerging and large biopharma, medical device, and diagnostic companies to run their clinical trials as a functional-service provider, full-service provider, and offers hybrid trials. In 2023, Fortrea was formed as an independent, publicly traded company after Labcorp spun off its clinical development business, which it acquired via its purchase of Covance in 2015 for $6.1 billion. Fortrea has 19,000 staff members across 90 countries.
Executives
James S. Hanson officer: General Counsel 79 TW ALEXANDER DRIVE, 4501 RESEARCH COMMONS, SUITE 100, RESEARCH TRIANGLE PARK NC 27709
Jill G. Mcconnell officer: Chief Financial Officer 8 MOORE DRIVE, DURHAM NC 27703
Mark A. Morais officer: Chief Operating Officer 8 MOORE DRIVE, DURHAM NC 27703
Thomas Pike officer: Chief Executive Officer C/O ACCENTURE, 161 N. CLARK STREET, 23RD FLOOR, CHICAGO IL 60601
Peter M Neupert director 13920 SE EASTGATE WAY, STE 300, BELLEVUE WA 98005
Betty D Larson director GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE, CHICAGO IL 60661
R Andrew Eckert director THREE RAVINIA DRIVE, ATLANTA GA 30346
Edward A Pesicka director 9120 LOCKWOOD BLVD, MECHANICSVILLE VA 23116
Amrit Ray director 60 LEVERONI COURT, NOVATO CA 94949
Amanda M. Warren officer: Chief Accounting Officer 8 MOORE DRIVE, DURHAM NC 27703
David Ross Smith director 251 BALLARDVALE STREET, WILMINGTON MA 01887
Van Der Vaart Sandra D director, officer: President and Secretary 531 SOUTH SPRING STREET, BURLINGTON NC 27215
Glenn A Eisenberg director, officer: Executive Vice President P O BOX 1017, CHARLOTTE NC 28201-1017
Laboratory Corp Of America Holdings 10 percent owner 358 S MAIN ST, BURLINGTON NC 27215
Robert S. Pringle officer: Treasurer 531 SOUTH SPRING STREET, BURLINGTON NC 27215