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SLP (Simulations Plus) Degree of Operating Leverage : -2.85 (As of Feb. 2025)


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What is Simulations Plus Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Simulations Plus's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was -2.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SLP's Degree of Operating Leverage is ranked better than
75.59% of 639 companies
in the Healthcare Providers & Services industry
Industry Median: 0.53 vs SLP: -2.85

Simulations Plus Degree of Operating Leverage Historical Data

The historical data trend for Simulations Plus'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.

Simulations Plus Degree of Operating Leverage Chart

Simulations Plus Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.34 -0.16 2.10 -3.94 -1.70

Simulations Plus Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
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 -0.67 -1.37 -1.70 -2.01 -2.85

Competitive Comparison of Simulations Plus's Degree of Operating Leverage

For the Health Information Services subindustry, Simulations Plus'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.


Simulations Plus's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Simulations Plus's Degree of Operating Leverage distribution charts can be found below:

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


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Simulations Plus Degree of Operating Leverage Calculation

Simulations Plus's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 3.567 (Feb. 2025) / 9.215 (Feb. 2024) - 1 )/( 78.564 (Feb. 2025) / 64.668 (Feb. 2024) - 1 )
=-0.6129/0.2149
=-2.85***

* 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.


Simulations Plus  (NAS:SLP) 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.


Simulations Plus Degree of Operating Leverage Related Terms

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


Simulations Plus Business Description

Traded in Other Exchanges
N/A
Address
42505 Tenth Street West, Lancaster, CA, USA, 93534-7059
Simulations Plus Inc is engaged in the software industry. It includes two segments. It develops and produces software for use in pharmaceutical research and education, and provides consulting and contract research services to the pharmaceutical industry. The company's operating segments include Software and services. The company offers software products for pharmaceutical research such as ADMET (Absorption, Distribution, Metabolism, Excretion, and Toxicity). It generates maximum revenue from the software segment. Maximum revenue is earned from USA following EMEA and Asia Pacific.
Executives
Walter S Woltosz director, 10 percent owner, officer: Chairman and CEO 42505 10TH ST. WEST, LANCASTER CA 93534
Daniel L Weiner director 800 WEST EL CAMINO REAL, SUITE 200, MOUNTAIN VIEW CA 94040
Lisa Lavange director 42505 10TH ST., WEST, LANCASTER CA 93534
John Kenneth Paglia director 746 GRABLE PLACE, NEWBURY PARK CA 91320
Dibella John Anthony Ii officer: Division President 42505 10TH STREET WEST, LANCASTER CA 93534
Steven Chang officer: President, Immunetrics 42505 10TH STREET WEST, LANCASTER CA 15203
Shawn Oconnor officer: Chief Executive Officer 42505 10TH STREET WEST, LANCASTER CA 93534-7059
Jill Fiedler-kelly officer: President, Cognigen Division 42505 10TH STREET WEST, LANCASTER CA 93534
Brett Howell officer: President, DILIsym Division 42505 10TH STREET WEST, LANCASTER CA 93534
William W Frederick officer: CFO C/O SIMULATIONS PLUS, INC., 42505 10TH STREET WEST, LANCASTER CA 93534
Sharlene Evans director 42505 10TH STREET WEST, LANCASTER CA 93534
Nguyen Nguyen officer: VP of Human Resources 42505 TENTH STREET WEST, LANCASTER CA 93534
David L. Ralph director 42505 10TH STREET WEST, LANCASTER CA 93534
John Robert Kneisel officer: CFO 42505 10TH STREET WEST, LANCASTER CA 93534
Grasela Thaddeus Henry Jr director, officer: President 1780 WEHRLE DRIVE SUITE 110, BUFFALO NY 14221