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PHR (Phreesia) Degree of Operating Leverage : -3.36 (As of Jan. 2025)


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What is Phreesia Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Phreesia's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was -3.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PHR's Degree of Operating Leverage is ranked better than
77.09% of 633 companies
in the Healthcare Providers & Services industry
Industry Median: 0.64 vs PHR: -3.36

Phreesia Degree of Operating Leverage Historical Data

The historical data trend for Phreesia'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.

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Phreesia Degree of Operating Leverage Chart

Phreesia Annual Data
Trend Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial 1.79 8.23 1.55 -0.87 -3.36

Phreesia 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 -0.87 -1.18 -1.62 -2.24 -3.36

Competitive Comparison of Phreesia's Degree of Operating Leverage

For the Health Information Services subindustry, Phreesia'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.


Phreesia's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

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

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


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Phreesia Degree of Operating Leverage Calculation

Phreesia'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
=( -53.464 (Jan. 2025) / -133.488 (Jan. 2024) - 1 )/( 419.813 (Jan. 2025) / 356.299 (Jan. 2024) - 1 )
=-0.5995/0.1783
=-3.36***

* 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.


Phreesia  (NYSE:PHR) 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.


Phreesia Degree of Operating Leverage Related Terms

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


Phreesia Business Description

Traded in Other Exchanges
Address
1521 Concord Pike, Suite 301, PMB 221, Wilmington, DE, USA, 19803
Phreesia Inc is a provider of comprehensive software solutions that improve the operational and financial performance of healthcare organizations by activating patients in their care to optimize patient health outcomes. Through its SaaS-based technology platform, it offers healthcare services clients a robust suite of integrated solutions that manage patient access, registration, payments, and clinical support. The Phreesia Platform encompasses a comprehensive range of technologies and services, including, initial patient contact, registration, automated answering services, appointment scheduling, payments, and post-appointment patient surveys.
Executives
Balaji Gandhi officer: Chief Financial Officer PHREESIA, INC., 1521 CONCORD PIKE, SUITE 301, PMB 221, WILMINGTON DE 19803
Allison C Hoffman officer: General Counsel & Secretary 315 EAST 68TH STREET, NEW YORK NY 10065
Amy Beth Vanduyn officer: SVP, Human Resources C/O PHREESIA, INC., 432 PARK AVENUE S., 12TH FLOOR, NEW YORK NY 10016
Chaim Indig director, officer: Chief Executive Officer C/O PHREESIA, INC., 432 PARK AVENUE S., 12TH FLOOR, NEW YORK NY 10016
David Linetsky officer: SVP, Life Sciences C/O PHREESIA, INC., 432 PARK AVENUE S., 12TH FLOOR, NEW YORK NY 10016
Evan Roberts officer: Chief Operating Officer C/O PHREESIA, INC., 432 PARK AVENUE S., 12TH FLOOR, NEW YORK NY 10016
Michael Weintraub director C/O PHREESIA, INC., 432 PARK AVENUE S., 12TH FLOOR, NEW YORK NY 10016
Lisa Egbuonu-davis director C/O OMEGA HEALTHCARE INVESTORS, INC., 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Mark Douglas Smith director C/O TELADOC HEALTH, INC., 2 MANHATTANVILLE ROAD, SUITE 203, PURCHASE NY 10577
Janet Gunzburg officer: Principal Accounting Officer BANKRATE, INC., 477 MADISON AVENUE, SUITE 430, NEW YORK NY 10022
Michael J. Davidoff officer: See Remarks C/O PHREESIA, INC., 432 PARK AVENUE S., 12TH FLOOR, NEW YORK NY 10016
Gillian Munson director C/O XO GROUP INC., 195 BROADWAY, 25TH FLOOR, NEW YORK NY 10007
Randy Rasmussen officer: Chief Financial Officer PHREESIA, INC., 434 FAYETTEVILLE ST., SUITE 1400, RALEIGH NC 27601
Ramin Sayar director 305 MAIN STREET, REDWOOD CITY CA 94063
Edward L Cahill 10 percent owner C/O HLM VENTURE PARTNERS, 800 SOUTH STREET, SUITE 200, WALTHAM MA 02453