GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Arcus Biosciences Inc (NYSE:RCUS) » Definitions » Degree of Operating Leverage

RCUS (Arcus Biosciences) Degree of Operating Leverage : -1.78 (As of Mar. 2025)


View and export this data going back to 2018. Start your Free Trial

What is Arcus Biosciences Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Arcus Biosciences's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.78. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RCUS's Degree of Operating Leverage is ranked better than
77.87% of 881 companies
in the Biotechnology industry
Industry Median: -0.02 vs RCUS: -1.78

Arcus Biosciences Degree of Operating Leverage Historical Data

The historical data trend for Arcus Biosciences'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.

Arcus Biosciences Degree of Operating Leverage Chart

Arcus Biosciences Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only 0.11 -0.37 8.20 2.97 -0.06

Arcus Biosciences 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 -0.18 -0.13 -0.05 -0.06 -1.78

Competitive Comparison of Arcus Biosciences's Degree of Operating Leverage

For the Biotechnology subindustry, Arcus Biosciences'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.


Arcus Biosciences's Degree of Operating Leverage Distribution in the Biotechnology Industry

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

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


;
;

Arcus Biosciences Degree of Operating Leverage Calculation

Arcus Biosciences'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
=( -387 (Mar. 2025) / -225 (Mar. 2024) - 1 )/( 141 (Mar. 2025) / 237 (Mar. 2024) - 1 )
=0.72/-0.4051
=-1.78***

* 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.


Arcus Biosciences  (NYSE:RCUS) 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.


Arcus Biosciences Degree of Operating Leverage Related Terms

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


Arcus Biosciences Business Description

Traded in Other Exchanges
N/A
Address
3928 Point Eden Way, Hayward, CA, USA, 94545
Arcus Biosciences Inc is a clinical-stage biopharmaceutical company. It develops immunotherapies for the treatment of cancer. The company focuses on an ATP-adenosine pathway, which is a key driver of immunosuppression in the tumor microenvironment to create and optimize differentiated small-molecule immuno-oncology product candidates. Its product pipeline includes Domvanalimab, Etrumadenant, AB598, Casdatifan among others. Arcus conducts clinical trials for different types of cancers such as Lung, Colorectal, Pancreatic, and others. The company operates through a single segment which is the business of developing and commercializing immunotherapies.
Executives
Terry J Rosen director, 10 percent owner, officer: Chief Executive Officer C/O TULARK INC, TWO CORP DRIVE S, SAN FRANCISCO CA 94080
Yasunori Kaneko director, 10 percent owner 509 ROEHAMPTON, HILLS BOROUGH CA 94010
Gilead Sciences Inc 10 percent owner 333 LAKESIDE DR, FOSTER CITY CA 94404
Alexander Azoy officer: Chief Accounting Officer 30699 RUSSELL RANCH ROAD, SUITE 140, WESTLAKE VILLAGE CA 91362
Jennifer Jarrett officer: See Remarks C/O MEDIVATION, INC., 525 MARKET ST., 36TH FLOOR, SAN FRANCISCO CA 94105
Juan C. Jaen director, 10 percent owner, officer: President 850 MAUDE AVENUE, MOUNTAIN VIEW CA 94043
Goeltz Ii Robert C. officer: Chief Financial Officer 343 OYSTER POINT BLVD, SUITE 100, SOUTH SAN FRANCISCO CA 94080
Carolyn C. Tang officer: General Counsel 3928 POINT EDEN WAY, HAYWARD CA 94545
Dimitry Sa Nuyten officer: Chief Medical Officer 740 HEINZ AVENUE, C/O ADURO BIOTECH, INC., BERKELEY CA 94710
Linda Slanec Higgins director 3610 LOUIS RD., PALO ALTO CA 94303
Nicole Lambert director 322 NORTH 2200 WEST, SALT LAKE CITY UT 84116
William Grossman officer: Chief Medical Officer C/O BELLICUM PHARMACEUTICALS, INC., 2130 W. HOLCOMBE BLVD., STE. 800, HOUSTON TX 77030
Kathryn E Falberg director C/O AXOVANT SCIENCES, INC., 320 WEST 37TH STREET, 5TH FLOOR, NEW YORK NY 10018
Michael Quigley director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Andrew J Perlman director 618 MIRADA AVE, STANFORD CA 94305