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RLAY (Relay Therapeutics) Degree of Operating Leverage : -0.03 (As of Mar. 2025)


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What is Relay Therapeutics Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Relay Therapeutics's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RLAY's Degree of Operating Leverage is ranked better than
50.68% of 880 companies
in the Biotechnology industry
Industry Median: -0.02 vs RLAY: -0.03

Relay Therapeutics Degree of Operating Leverage Historical Data

The historical data trend for Relay Therapeutics'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.

Relay Therapeutics Degree of Operating Leverage Chart

Relay Therapeutics Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial - -3.19 -0.68 0.01 -0.03

Relay Therapeutics 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 - - -0.12 -0.03 -0.03

Competitive Comparison of Relay Therapeutics's Degree of Operating Leverage

For the Biotechnology subindustry, Relay Therapeutics'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.


Relay Therapeutics's Degree of Operating Leverage Distribution in the Biotechnology Industry

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

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


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Relay Therapeutics Degree of Operating Leverage Calculation

Relay Therapeutics'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
=( -378.348 (Mar. 2025) / -369.437 (Mar. 2024) - 1 )/( 7.679 (Mar. 2025) / 35.327 (Mar. 2024) - 1 )
=0.0241/-0.7826
=-0.03***

* 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.


Relay Therapeutics  (NAS:RLAY) 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.


Relay Therapeutics Degree of Operating Leverage Related Terms

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Relay Therapeutics Business Description

Traded in Other Exchanges
N/A
Address
399 Binney Street, 2nd Floor, Cambridge, MA, USA, 02139
Relay Therapeutics Inc is a clinical-stage precision medicine company transforming the drug discovery process by combining leading-edge computational and experimental technologies with the goal of bringing life-changing therapies to patients. the Dynamo platform integrates an array of leading-edge computational and experimental approaches designed to drug-protein targets that have previously been intractable or inadequately addressed. The company is advancing a pipeline of medicine candidates to address targets in precision oncology and genetic disease, including product candidates, RLY-4008, RLY-2608, and GDC-1971 (formerly known as RLY-1971).
Executives
Peter Rahmer officer: See remarks C/O RELAY THERAPEUTICS, INC., 399 BINNEY STREET, 2ND FLOOR, CAMBRIDGE MA 02139
Thomas Catinazzo officer: Vice President, Finance C/O RELAY THERAPEUTICS, INC., 399 BINNEY STREET, CAMBRIDGE MA 02139
Donald A Bergstrom officer: See Remarks 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139
Brian Adams officer: General Counsel 750 LEXINGTON AVENUE, NEW YORK NY 10022
Sanjiv Patel director, officer: President and CEO C/O RELAY THERAPEUTICS, INC., 399 BINNEY STREET, CAMBRIDGE MA 02139
Andy Porter officer: See Remarks C/O RELAY THERAPEUTICS, INC., 399 BINNEY STREET, CAMBRIDGE MA 02139
Mark Murcko director C/O RELAY THERAPEUTICS, INC., 399 BINNEY STREET, CAMBRIDGE MA 02139
Sekar Kathiresan director 500 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Third Rock Ventures Iii, L.p. 10 percent owner 29 NEWBURY STREET, 3RD FLOOR, BOSTON MA 02116
Jami Rubin director C/O RELAY THERAPEUTICS, INC., 399 BINNEY STREET, CAMBRIDGE MA 02139
Douglas S Ingram director 2525 DUPONT DR, IRVINE CA 92612
Third Rock Ventures Gp Iv, L.p. 10 percent owner 29 NEWBURY STREET, 3RD FLOOR, BOSTON MA 02116
Svf Pauling (cayman) Ltd 10 percent owner 27 HOSPITAL ROAD, GEORGE TOWN, GEORGE TOWN E9 KY1-9008
Picularium, Llc 10 percent owner 1166 AVENUE OF THE AMERICAS, NINTH FLOOR, NEW YORK NY 10036
Laura Shawver director 1255 CRESCENT GREEN DRIVE, SUITE 250, CARY NC 27518