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SWKH (SWK Holdings) Degree of Operating Leverage : 6.77 (As of Mar. 2025)


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What is SWK Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. SWK Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.77. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SWKH's Degree of Operating Leverage is ranked worse than
89.38% of 612 companies
in the Asset Management industry
Industry Median: 0.71 vs SWKH: 6.77

SWK Holdings Degree of Operating Leverage Historical Data

The historical data trend for SWK Holdings'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.

SWK Holdings Degree of Operating Leverage Chart

SWK Holdings 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 -3.90 13.44 2.70 -7.51 2.12

SWK Holdings 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 -278.63 1.58 3.46 2.12 6.77

Competitive Comparison of SWK Holdings's Degree of Operating Leverage

For the Asset Management subindustry, SWK Holdings'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.


SWK Holdings's Degree of Operating Leverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, SWK Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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SWK Holdings Degree of Operating Leverage Calculation

SWK Holdings'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
=( 28.766 (Mar. 2025) / 13.707 (Mar. 2024) - 1 )/( 46.153 (Mar. 2025) / 39.709 (Mar. 2024) - 1 )
=1.0986/0.1623
=6.77***

* 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.


SWK Holdings  (NAS:SWKH) 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.


SWK Holdings Degree of Operating Leverage Related Terms

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SWK Holdings Business Description

Traded in Other Exchanges
N/A
Address
5956 Sherry Lane, Suite 650, Dallas, TX, USA, 75225
SWK Holdings Corp is a healthcare capital provider. The company offers financing solutions to various life science companies, institutions, and inventors. It involves monetizing cash flow streams derived from commercial-stage products and related intellectual property through royalty purchases and financings, as well as through the creation of synthetic revenue interests in commercialized products. Through its wholly-owned subsidiary, it also provides non-discretionary investment advisory services to institutional clients. The company's operating segments are Finance Receivables and Pharmaceutical Development Services. It generates maximum revenue from the Finance Receivables segment.
Executives
Jerry Albright director C/O SWK HOLDINGS CORP, 14755 PRESTON ROAD, SUITE 105, DALLAS TX 75254
Yvette M Heinrichson officer: Chief Financial Officer 14755 PRESTON ROAD, SUITE 105, DALLAS TX 75254
Staggs Joe David Jr officer: PRESIDENT 14755 PRESTON ROAD, SUITE 105, DALLAS TX 75254
Marcus Edward Pennington director 2100 MCKINNEY AVENUE, SUITE 1800, DALLAS TX 75201
Wendy F Dicicco director
Robert K. Hatcher director 2929 ALLEN PARKWAY, SUITE 3000, HOUSTON TX 77019
Laurie L. Dotter director 3615 WEST LAWTHER DRIVE, DALLAS TX 75214
Black Winston L Iii officer: Chief Executive Officer 14755 PRESTON ROAD, SUITE 105, DALLAS TX 75254
Fletcher Aaron G.l. director 40 GUEST STREET, BOSTON MA 02135
Carlson Capital L P director, 10 percent owner, other: See Remarks 2100 MCKINNEY AVE, STE 1900, DALLAS TX 75201
Dana Blair Baker director 200 CRESCENT COURT, SUITE 1450, DALLAS TX 75201
James Brett Pope director, officer: CEO 4020 SAHARA CT., CARROLLTON TX 75010
Edward B Stead director 14755 PRESTON ROAD, SUITE 105, DALLAS TX 75254
Christopher W Haga director PO BOX 10809, DAYTONA BEACH FL 32120
Black Diamond Offshore Ltd. director, 10 percent owner, other: See Remarks CITCO FUND SERVICES, 89 NEXUS WAY, P.O. BOX 31106, GRAND CAYMAN E9 KY1-1205