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TBPH (Theravance Biopharma) Degree of Operating Leverage : 5.20 (As of Mar. 2025)


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What is Theravance Biopharma Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Theravance Biopharma's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.20. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TBPH's Degree of Operating Leverage is ranked worse than
86.7% of 880 companies
in the Biotechnology industry
Industry Median: -0.02 vs TBPH: 5.20

Theravance Biopharma Degree of Operating Leverage Historical Data

The historical data trend for Theravance Biopharma'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.

Theravance Biopharma Degree of Operating Leverage Chart

Theravance Biopharma 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 -19.10 1.13 8.44 -3.84 -0.85

Theravance Biopharma 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 -1.91 -2.10 -2.02 -0.85 5.20

Competitive Comparison of Theravance Biopharma's Degree of Operating Leverage

For the Biotechnology subindustry, Theravance Biopharma'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.


Theravance Biopharma's Degree of Operating Leverage Distribution in the Biotechnology Industry

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

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


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Theravance Biopharma Degree of Operating Leverage Calculation

Theravance Biopharma'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
=( -45.79 (Mar. 2025) / -34.759 (Mar. 2024) - 1 )/( 65.266 (Mar. 2025) / 61.51 (Mar. 2024) - 1 )
=0.3174/0.0611
=5.20***

* 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.


Theravance Biopharma  (NAS:TBPH) 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.


Theravance Biopharma Degree of Operating Leverage Related Terms

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


Theravance Biopharma Business Description

Traded in Other Exchanges
Address
901 Gateway Boulevard, South San Francisco, CA, USA, 94080
Theravance Biopharma Inc is a diversified biopharmaceutical company focused on the discovery, development, and commercialization of organ-selective medicines. Its purpose is to pioneer a new generation of small-molecule drugs designed to meet patient needs. Its research is focused on the areas of inflammation and immunology. The firm applies organ-selective expertise to target disease biologically, to discover and develop medicines that may expand the therapeutic index with the goal of maximizing efficacy and limiting systemic side effects. The company develops lung-selective medicines to treat respiratory disease, including FDA-approved YUPELRI (revefenacin) inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD).
Executives
Rhonda Farnum officer: SVP, Comm & Medical Affairs 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Eli Samaha 10 percent owner ONE WORLD TRADE CENTER, FLOOR 65, NEW YORK NY 10007
Richard A Graham officer: SVP, Development 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Kelly James Connor director 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Susannah Gray director 10770 WATERIDGE CIRCLE SUITE 200, SAN DIEGO CA 92121
Brett A. Grimaud officer: SVP, Gen Counsel and Secretary 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Aziz Sawaf officer: SVP & Chief Financial Officer 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Rick E Winningham director, officer: Chief Executive Officer 901 GATEWAY BOULEVARD, SOUTH SAN FRANCISCO CA 94080
Andrew A. Hindman officer: SVP, Chief Financial Officer C/O ACORDA THERAPEUTICS, INC., 420 SAW MILL RIVER ROAD, ARDSLEY NY 10502
Weiss Asset Management Lp 10 percent owner 222 BERKELEY STREET, 16TH FLOOR, BOSTON MA 02116
Andrew M Weiss 10 percent owner 222 BERKELEY STREET, 16TH FLOOR, BOSTON MA 02116
Wam Gp Llc 10 percent owner 222 BERKELEY STREET, 16TH FLOOR, BOSTON MA 02116
Philip D Worboys officer: SVP, Translational Science 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Brett K Haumann officer: VP-Clinical Develop. 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Deepika Pakianathan director 160 BOVET ROAD, SUITE 408, C/O DELPHI VENTURES, SAN MATEO CA 94402