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PRPO (Precipio) Degree of Operating Leverage : -1.45 (As of Mar. 2025)


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What is Precipio Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Precipio's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.45. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PRPO's Degree of Operating Leverage is ranked better than
74.4% of 207 companies
in the Medical Diagnostics & Research industry
Industry Median: 0.45 vs PRPO: -1.45

Precipio Degree of Operating Leverage Historical Data

The historical data trend for Precipio'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.

Precipio Degree of Operating Leverage Chart

Precipio 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 0.11 -0.26 5.47 -0.86 -1.26

Precipio 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 -0.88 -1.23 -2.15 -1.26 -1.45

Competitive Comparison of Precipio's Degree of Operating Leverage

For the Diagnostics & Research subindustry, Precipio'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.


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

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

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


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Precipio Degree of Operating Leverage Calculation

Precipio'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
=( -3.001 (Mar. 2025) / -4.883 (Mar. 2024) - 1 )/( 20.029 (Mar. 2025) / 15.812 (Mar. 2024) - 1 )
=-0.3854/0.2667
=-1.45***

* 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.


Precipio  (NAS:PRPO) 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.


Precipio Degree of Operating Leverage Related Terms

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


Precipio Business Description

Traded in Other Exchanges
N/A
Address
4 Science Park, New Haven, CT, USA, 06511
Precipio Inc is a healthcare solutions company focused on cancer diagnostics. It focuses on addressing the problem of cancer misdiagnoses by developing solutions to mitigate the root causes of this problem in the form of diagnostic products, reagents, and services. The company operates Clinical Laboratory Improvement Amendments laboratories in both the New Haven, Connecticut and Omaha, Nebraska locations providing essential blood cancer diagnostics to office-based oncologists in many states nationwide. It provides new technologies to the oncology diagnostic laboratory market in the form of HemeScreen and IV-Cell product offerings. The company generates the majority of its revenue from third-party payers.
Executives
Richard A Sandberg director 330 NEVEDA STREET, NEWTON MA 02460-1458
Ahmed Zaki Sabet officer: Chief Operations Officer 33 ANDYS DR, EAST HAVEN CT 06512
Ilan Danieli director, officer: Chief Executive Officer 14707 CALIFORNIA STREET, SUITE 5, OMAHA NE 68154
Matthew Gage officer: Chief Financial Officer 56 STAGECOACH CIRCLE, MILFORD CT 06460
David Seth Cohen director, 10 percent owner C/O STANDARD OIL, 299 BISHOP AVENUE, BRIDGEPORT CT 06610
Ronald Asbury Andrews director 5791 VAN ALLEN WAY, CARLSBAD CA 92008
Randal J Kirk 10 percent owner 1881 GROVE AVENUE, RADFORD VA 24141
Kathleen Laporte director
Robert Patzig director THE GOVERNOR TYLER, 1881 GROVE AVENUE, RADFORD VA 24141
Michael A Luther director 21 CORPORATE CIRCLE, ALBANY NY 12203
Jeffrey Cossman director C/O PRECIPIO INC., 4 SCIENCE PARK, NEW HAVEN CT 06511
Samuel D Riccitelli director 2850 FRONTIER DR., WARSAW IN 46582
Carl Iberger officer: Chief Financial Officer C/O PRECIPIO, INC., 12325 EMMET STREET, OMAHA NE 68164
Douglas Fisher director 587 PATROL RD, WOODSIDE CA 94062
Mark Rimer director, 10 percent owner C/O PRECIPIO, INC., 4 SCIENCE PARK, NEW HAVEN CT 06511