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MTEMQ (Molecular Templates) Degree of Operating Leverage : 1.25 (As of Jun. 2024)


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What is Molecular Templates Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Molecular Templates's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 1.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MTEMQ's Degree of Operating Leverage is ranked worse than
69.66% of 880 companies
in the Biotechnology industry
Industry Median: -0.02 vs MTEMQ: 1.25

Molecular Templates Degree of Operating Leverage Historical Data

The historical data trend for Molecular Templates'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.

Molecular Templates Degree of Operating Leverage Chart

Molecular Templates Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.79 -2.60 -0.15 -0.21 -0.56

Molecular Templates Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -1.19 -1.85 -0.56 2.07 1.25

Competitive Comparison of Molecular Templates's Degree of Operating Leverage

For the Biotechnology subindustry, Molecular Templates'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.


Molecular Templates's Degree of Operating Leverage Distribution in the Biotechnology Industry

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

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


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Molecular Templates Degree of Operating Leverage Calculation

Molecular Templates's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -15.498 (Jun. 2024) / -41.498 (Jun. 2023) - 1 )/( 23.484 (Jun. 2024) / 47.105 (Jun. 2023) - 1 )
=-0.6265/-0.5015
=1.25***

* 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.


Molecular Templates  (OTCPK:MTEMQ) 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.


Molecular Templates Degree of Operating Leverage Related Terms

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


Molecular Templates Business Description

Traded in Other Exchanges
N/A
Address
9301 Amberglen Boulevard, Suite 100, Austin, TX, USA, 78729
Molecular Templates Inc is a clinical-stage biopharmaceutical company focused on developing therapeutic agents that selectively target tumor cells for the treatment of individuals living with cancer. Its pipeline products are MT-6402, MT-8421 and MT-0169.
Executives
Biotech Target N V 10 percent owner ARA HILL TOP BUILDING, UNIT A-5, PLETTERIJWEG OOST 1, CURACAO, WILLEMSTAD P8 000000
Maurizio Voi officer: Chief Medical Officer 4 MAGUIRE ROAD, LEXINGTON MA 02421
Sean Mclennan officer: CFO & Treasurer C/O MOLECULAR TEMPLATES, INC., 93010 AMBERGLEN BLVD., SUITE 100, AUSTIN TX 78729
Kevin M. Lalande director, 10 percent owner 201 WEST 5TH STREET, AUSTIN TX 78701
Shv Management Services, Llc 10 percent owner FROST TOWER, 401 CONGRESS AVENUE, SUITE 2950, AUSTIN TX 78701
Gabriela Gruia director C/O TSCAN THERAPEUTICS, INC., 830 WINTER STREET, WALTHAM MA 02451
Jason S. Kim officer: See Remarks 9301 AMBERGLEN BOULEVARD, SUITE 100, C/O MOLECULAR TEMPLATES, INC., AUSTIN TX 78729
Biotech Ag Bb 10 percent owner SCHWERTSTRASSE 6, SCHAFFHAUSEN V8 8200
Longitude Capital Partners Iii, Llc 10 percent owner 800 EL CAMINO, SUITE 220, MENLO PARK CA 94025
Sanders Corazon (corsee) D. director C/O MOLECULAR TEMPLATES, INC., 9301 AMBERGLEN BLVD, SUITE 100, AUSTIN VI 78729
Patrick G Enright 10 percent owner CO LONGITUDE CAPITAL PARTNERS LLC, 800 EL CAMINO REAL, SUITE 220, MENLO PARK CA 94025
Bakker Juliet Tammenoms 10 percent owner LONGITUDE CAPITAL MANAGEMENT CO., LLC, 800 EL CAMINO REAL, SUITE 220, MENLO PARK CA 94025
David Hirsch director, 10 percent owner C/O LONGITUDE CAPITAL PARTNERS, LLC, 800 EL CAMINO REAL, SUITE 220, MENLO PARK CA 94025
Longitude Venture Partners Iii, L.p. 10 percent owner 800 EL CAMINO REAL, SUITE 220, MENLO PARK CA 94025
Scott D Morenstein director C/O CAXTON ALTERNATIVE MANAGEMENT LP, 1330 SIXTH AVENUE, 20TH FLOOR, NEW YORK NY 10019