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NTRA (Natera) Degree of Operating Leverage : -0.95 (As of Mar. 2025)


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What is Natera Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Natera's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.95. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

NTRA's Degree of Operating Leverage is ranked better than
70.53% of 207 companies
in the Medical Diagnostics & Research industry
Industry Median: 0.45 vs NTRA: -0.95

Natera Degree of Operating Leverage Historical Data

The historical data trend for Natera'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.

Natera Degree of Operating Leverage Chart

Natera 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 3.11 1.93 0.52 -0.67 -1.01

Natera 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 -0.87 -0.96 -1.07 -1.01 -0.95

Competitive Comparison of Natera's Degree of Operating Leverage

For the Diagnostics & Research subindustry, Natera'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.


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

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

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


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Natera Degree of Operating Leverage Calculation

Natera'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
=( -180.757 (Mar. 2025) / -352.223 (Mar. 2024) - 1 )/( 1831 (Mar. 2025) / 1208.556 (Mar. 2024) - 1 )
=-0.4868/0.515
=-0.95***

* 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.


Natera  (NAS:NTRA) 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.


Natera Degree of Operating Leverage Related Terms

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


Natera Business Description

Traded in Other Exchanges
N/A
Address
13011 McCallen Pass, Building A Suite 100, Austin, TX, USA, 78753
Natera Inc is a diagnostic and research company with proprietary molecular and bioinformatics technology. The company's key product offerings include its Panorama Non-Invasive Prenatal Test (NIPT) which screens for chromosomal abnormalities of a fetus as well as in twin pregnancies, typically with a blood draw from the mother, Horizon Carrier Screening (HCS) to determine carrier status for a large number of severe genetic diseases that could be passed on to the carrier's children, Signatera molecular residual disease (MRD) test, which detects circulating tumor DNA in patients previously diagnosed with cancer to assess molecular residual disease and monitor for recurrence; and Prospera, to assess organ transplant rejection.
Executives
Jonathan Sheena director, officer: Chief Technology Officer C/O NATERA, INC., 201 INDUSTRIAL ROAD, SUITE 410, SAN CARLOS CA 94070
Gail Boxer Marcus director 201 INDUSTRIAL ROAD, SUITE 410, SAN CARLOS CA 94070
Steven Leonard Chapman officer: Chief Operating Officer 201 INDUSTRIAL ROAD, SUITE 410, SAN CARLOS CA 94070
Michael Burkes Brophy officer: Chief Financial Officer 201 INDUSTRIAL ROAD, SUITE 410, SAN CARLOS CA 94070
Daniel Rabinowitz officer: CHIEF LEGAL OFFICER C/O NATERA, INC., 13011 MCCALLEN PASS BUILDING A SUITE 100, AUSTIN TX 78753
Matthew Rabinowitz director, officer: Chief Executive Officer C/O NATERA, INC., 201 INDUSTRIAL ROAD, SUITE 410, SAN CARLOS CA 94070
Rowan E Chapman director 201 INDUSTRIAL ROAD, SUITE 410, SAN CARLOS CA 94070
Roelof Botha director C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Roy D. Baynes director C/O RETROPHIN, INC., 12255 EL CAMINO REAL, SUITE 250, SAN DIEGO CA 92130
Herm Rosenman officer: Chief Financial Officer OXFORD IMMUNOTEC GLOBAL PLC, 94C INNOVATION DRIVE, HILTON PARK, SAN DIEGO X0 OX14 4RZ
James Healy director 3000 SAND HILL ROAD, 4-250, MENLO PARK CA 94025
Brinkley Ruth Williams director C/O TRAVERE THERAPEUTICS, INC., 3611 VALLEY CENTRE DRIVE, SUITE 300, SAN DIEGO CA 92130
Robert Alan Schueren officer: Chief Operating Officer 7400 PASEO PADRE PARKWAY, FREMONT CA 94555
Todd C Cozzens director ONE FEDERAL STREET, 25TH FLOOR, BOSTON MA 02110
Monica Bertagnolli director C/O LEAP THERAPEUTICS, INC., 47 THORNDIKE STREET, SUITE B1-1, CAMBRIDGE MA 02141