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PBSV (Pharma-Bio Serv) Degree of Operating Leverage : 10.11 (As of Jan. 2025)


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What is Pharma-Bio Serv Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pharma-Bio Serv's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 10.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Pharma-Bio Serv's Degree of Operating Leverage or its related term are showing as below:

PBSV's Degree of Operating Leverage is ranked worse than
88.13% of 640 companies
in the Healthcare Providers & Services industry
Industry Median: 0.505 vs PBSV: 10.11

Pharma-Bio Serv Degree of Operating Leverage Historical Data

The historical data trend for Pharma-Bio Serv'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.

Pharma-Bio Serv Degree of Operating Leverage Chart

Pharma-Bio Serv Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.95 40.65 36.61 0.40 4.89

Pharma-Bio Serv Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 3.70 4.40 4.69 4.89 10.11

Competitive Comparison of Pharma-Bio Serv's Degree of Operating Leverage

For the Health Information Services subindustry, Pharma-Bio Serv'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.


Pharma-Bio Serv's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Pharma-Bio Serv's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Pharma-Bio Serv's Degree of Operating Leverage falls into.


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Pharma-Bio Serv Degree of Operating Leverage Calculation

Pharma-Bio Serv's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.941 (Jan. 2025) / 0.35 (Jan. 2024) - 1 )/( 9.6 (Jan. 2025) / 15.118 (Jan. 2024) - 1 )
=-3.6886/-0.365
=10.11***

* 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.


Pharma-Bio Serv  (OTCPK:PBSV) 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.


Pharma-Bio Serv Degree of Operating Leverage Related Terms

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


Pharma-Bio Serv Business Description

Traded in Other Exchanges
N/A
Address
No. 6 Road 696, Pharma-Bio Serv Building, Dorado, PRI, 00646
Pharma-Bio Serv Inc is a compliance and technology transfer services consulting firm. It also provides microbiological testing services and chemical testing services through its laboratory testing facility in Puerto Rico. It has three reportable segments: Puerto Rico technical compliance consulting which is the key revenue driver; United States technical compliance consulting; and Europe technical compliance consulting. The company offers solutions to the pharmaceutical, chemical, biotechnology, medical devices, cosmetic and food industries, and allied products companies. It generates maximum revenue from Puerto Rico and also has its presence in United States, Europe and Other countries.
Executives
Elizabeth Plaza 10 percent owner 363 DORADO BEACH EAST, DORADO PR 00646
Altura Victor Sanchez officer: President and CEO C/O PHARMA-BIO SERV, INC., 6 ROAD 696, DORADO PR 00646
San Juan Holdings 10 percent owner 255 PONCE DE LEON, SUITE 305 MCS PLAZA, SAN JUAN PR 00917
Pedro J Lasanta officer: Chief Financial Officer 373 MENDEZ VIGO, STE 110, DORADO PR 00646
Dov Perlysky director 2 LAKESIDE DRIVE WEST, LAWRENCE NY 11559
L P Venturetek 10 percent owner C/O DAVID SELENGUT ELLENOFF GROSSMAN, 370 LEXINGTON AVENUE 19TH FLOOR, NEW YORK NY 10017
Barron Partners Lp 10 percent owner 730 FIFTH AVENUE, 25TH FLOOR, NEW YORK NY 10019
Manuel O Morera officer: Chief Financial Officer 373 MENDEZ VIGO, SUITE 110, DORADO PR 00646
Mark A Fazio officer: Exec. Vice President and COO P O BOX 1026 GREEN STREET, PERKASIE PA 18944
Kirk Wheeler Michel director 209 EAST TRYON STREET, HILLSBOROUGH NC 27278
Irving L Wiesen director 1273 NORTH AVENUE, APT 1E 7, NEW ROCHELLE NY 10804
Howard Spindel director 39 BROADWAY SUITE 3300, NEW YORK NY 10028
Nelida Plaza Rodriguez officer: Vice President and Secretary G11 CALLE MADRE PERLA URB, DORADO DEL MAR, DORADO PR 00646
Krovim Llc director, 10 percent owner, officer: Manager P.O. BOX 339, LAWRENCE NY 11559