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RXRX (Recursion Pharmaceuticals) Degree of Operating Leverage : 1.85 (As of Mar. 2025)


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What is Recursion Pharmaceuticals Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Recursion Pharmaceuticals's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

RXRX's Degree of Operating Leverage is ranked worse than
75.11% of 880 companies
in the Biotechnology industry
Industry Median: -0.02 vs RXRX: 1.85

Recursion Pharmaceuticals Degree of Operating Leverage Historical Data

The historical data trend for Recursion Pharmaceuticals'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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Recursion Pharmaceuticals Degree of Operating Leverage Chart

Recursion Pharmaceuticals Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.40 0.59 0.10 3.66 1.19

Recursion Pharmaceuticals 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 -16.05 -18.29 0.81 1.19 1.85

Competitive Comparison of Recursion Pharmaceuticals's Degree of Operating Leverage

For the Biotechnology subindustry, Recursion Pharmaceuticals'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.


Recursion Pharmaceuticals's Degree of Operating Leverage Distribution in the Biotechnology Industry

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

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


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Recursion Pharmaceuticals Degree of Operating Leverage Calculation

Recursion Pharmaceuticals'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
=( -573.222 (Mar. 2025) / -358.857 (Mar. 2024) - 1 )/( 59.815 (Mar. 2025) / 45.233 (Mar. 2024) - 1 )
=0.5974/0.3224
=1.85***

* 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.


Recursion Pharmaceuticals  (NAS:RXRX) 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.


Recursion Pharmaceuticals Degree of Operating Leverage Related Terms

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Recursion Pharmaceuticals Business Description

Traded in Other Exchanges
Address
41 S Rio Grande Street, Salt Lake City, UT, USA, 84101
Recursion Pharmaceuticals Inc is a clinical-stage biotechnology company. The company is decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering, with the goal of radically improving the lives of patients and industrializing drug discovery.
Executives
Christopher Gibson director, 10 percent owner, officer: Chief Executive Officer C/O RECURSION PHARMACEUTICALS, 41 S. RIO GRANDE STREET, SALT LAKE CITY UT 84101
Michael Secora officer: Chief Financial Officer C/O RECURSION PHARMACEUTICALS, 41 S. RIO GRANDE STREET, SALT LAKE CITY UT 84101
Blake Borgeson director C/O RECURSION PHARMACEUTICALS, 41 S. RIO GRANDE STREET, SALT LAKE CITY UT 84101
Tina Marriott Larson officer: President and COO C/O RECURSION PHARMACEUTICALS, 41 S. RIO GRANDE STREET, SALT LAKE CITY UT 84101
Shafique Virani officer: Chief Corp. Dev. Officer C/O RECURSION PHARMACEUTICALS, 41 S. RIO GRANDE STREET, SALT LAKE CITY UT 84101
Dean Y Li director 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Zavain Dar director C/O LUX CAPITAL MANAGEMENT, LLC, 1600 EL CAMINO REAL - SUITE 290, MENLO PARK CA 94025
Terry-ann Burrell director C/O BEAM THERAPEUTICS INC., 26 LANDSDOWNE STREET, CAMBRIDGE MA 02139
David J Mauro officer: Chief Medical Officer 36 TERRELL DRIVE, WASHINGTON CROSS PA 18977
Mubadala Investment Co Pjsc 10 percent owner P.O. BOX 45005, ABU DHABI C0 00000
Peter Hebert other: Former 10% Owner C/O LUX VENTURES, 295 MADISON AVE, 24TH FLOOR, NEW YORK NY 10017
Lux Ventures Iv, L.p. other: Former 10% Owner 295 MADISON AVENUE, 24TH FLOOR, NEW YORK NY 10017
Lux Venture Partners Iv, Llc other: Former 10% Owner 920 BROADWAY, 11TH FLOOR, NEW YORK NY 10010
Lux Co-invest Partners, Llc other: Former 10% Owner C/O LUX CAPITAL, 920 BROADWAY, 11TH FLOOR, NEW YORK NY 10010
Lux Co-invest Opportunities, L.p. other: Former 10% Owner C/O LUX CAPITAL MANAGEMENT, 920 BROADWAY, 11TH FLOOR, NEW YORK NY 10010