GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Prime Medicine Inc (NAS:PRME) » Definitions » Degree of Operating Leverage

PRME (Prime Medicine) Degree of Operating Leverage : 0.01 (As of Mar. 2025)


View and export this data going back to 2022. Start your Free Trial

What is Prime Medicine Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Prime Medicine's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.01. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PRME's Degree of Operating Leverage is ranked worse than
51.81% of 884 companies
in the Biotechnology industry
Industry Median: -0.03 vs PRME: 0.01

Prime Medicine Degree of Operating Leverage Historical Data

The historical data trend for Prime Medicine'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.

Prime Medicine Degree of Operating Leverage Chart

Prime Medicine Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- - - - -

Prime Medicine Quarterly Data
Dec19 Dec20 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 - - - - 0.01

Competitive Comparison of Prime Medicine's Degree of Operating Leverage

For the Biotechnology subindustry, Prime Medicine'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.


Prime Medicine's Degree of Operating Leverage Distribution in the Biotechnology Industry

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

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


;
;

Prime Medicine Degree of Operating Leverage Calculation

Prime Medicine'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
=( -206.518 (Mar. 2025) / -199.601 (Mar. 2024) - 1 )/( 3.846 (Mar. 2025) / 0.591 (Mar. 2024) - 1 )
=0.0347/5.5076
=0.01***

* 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.


Prime Medicine  (NAS:PRME) 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.


Prime Medicine Degree of Operating Leverage Related Terms

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


Prime Medicine Business Description

Traded in Other Exchanges
N/A
Address
60 First Street, Cambridge, MA, USA, 02141
Prime Medicine Inc is a biotechnology company committed to delivering genetic therapies to address diseases by deploying gene editing technology, Prime Editing. The Prime Editing technology is a next-generation technology that can search and replace to restore normal genetic function in the genome and can treat a wide spectrum of diseases with high unmet medical needs and efficient and broad gene editing technology.
Executives
Ann L. Lee officer: Chief Technical Officer 400 DEXTER AVENUE NORTH, SUITE 1200, SEATTLE WA 98109
Richard Brudnick officer: Chief Business Officer BIOVERATIV INC., 225 SECOND AVENUE, WALTHAM MA 02451
Robert Nelsen director, 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Arch Venture Partners X, Llc 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Gv 2019 Gp, L.l.c. 10 percent owner 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
Jeffrey D Marrazzo director 3737 MARKET STREET, SUITE 1300, PHILADELPHIA PA 19104
Gv 2021 Gp, L.l.c. 10 percent owner 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
2019, L.p. Gv 10 percent owner 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
Gv 2019 Gp, L.p. 10 percent owner 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
Gv 2021 Gp, L.p. 10 percent owner 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
2021, L.p. Gv 10 percent owner 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
Alphabet Inc. 10 percent owner 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
Thomas Cahill director PRIME MEDICINE, INC., 21 ERIE ST., CAMBRIDGE MA 02139
Steven Gillis 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
David P Schenkein director C/O BLUEBIRD BIO, INC., 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139