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Aflac (AFL) Degree of Operating Leverage : 2.27 (As of Mar. 2025)


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What is Aflac Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Aflac's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AFL's Degree of Operating Leverage is ranked worse than
70.88% of 340 companies
in the Insurance industry
Industry Median: 0.94 vs AFL: 2.27

Aflac Degree of Operating Leverage Historical Data

The historical data trend for Aflac'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.

Aflac Degree of Operating Leverage Chart

Aflac 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 -58.62 -6.59 0.60 -4.39 13.91

Aflac 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 6.89 5.80 2.02 13.91 2.27

Competitive Comparison of Aflac's Degree of Operating Leverage

For the Insurance - Life subindustry, Aflac'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.


Aflac's Degree of Operating Leverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Aflac's Degree of Operating Leverage distribution charts can be found below:

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


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Aflac Degree of Operating Leverage Calculation

Aflac'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
=( 4591 (Mar. 2025) / 6284 (Mar. 2024) - 1 )/( 17143 (Mar. 2025) / 19446 (Mar. 2024) - 1 )
=-0.2694/-0.1184
=2.27***

* 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.


Aflac  (NYSE:AFL) 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.


Aflac Degree of Operating Leverage Related Terms

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


Aflac Business Description

Industry
Address
1932 Wynnton Road, Columbus, GA, USA, 31999
Aflac Inc offers supplemental health insurance and life insurance in the United States and Japan. In addition to its cancer policies, the company has broadened its product offerings to include accident, dental and vision, disability, and long-term-care insurance. It markets its products through independent distributors, selling the majority of its policies directly to consumers at their places of work, and also reaches out to its customers outside of their worksite through digital mediums. The company has two reportable business segments; Aflac Japan which generates the majority of the revenue, and Aflac U.S.
Executives
Masatoshi Koide officer: Deputy President, Aflac Japan 1932 WYNNTON RD, COLUMBUS GA 31999
Arthur Reginald Collins director 3911 LORCOM LANE, ARLINGTON VA 22207
Thomas J Kenny director FRANKLIN RESOURCES INC, 901 MARINERS ISLAND BLVD 6TH FLOOR, SAN MATEO CA 94404
Joseph L Moskowitz director 1932 WYNNTON ROAD, COLUMBUS GA 31999
Lake Charles D Ii officer: President AFLAC Japan AFLAC INC, 1932 WYNNTON RD, COLUMBUS GA 31999
Audrey B Tillman officer: Executive Vice President 1932 WYNNTON RD, COLUMBUS GA 31999
Albert Riggieri officer: SVP, Corporate Actuary 1932 WYNNTON RD, COLUMBUS GA 31999
Karole Lloyd director 1932 WYNNTON ROAD, COLUMBUS GA 31999
William P Bowers director 600 NORTH 18TH STREET, BIN 15N-8170, BIRMINGHAM AL 35203
Barbara K Rimer director 1932 WYNNTON ROAD, COLUMBUS GA 31999
Steven Kent Beaver officer: SVP, CFO, Aflac US 1932 WYNNTON ROAD, COLUMBUS GA 31999
June P Howard officer: Sr. Vice President 1932 WYNNTON RD, COLUMBUS GA 31999
Frederick John Crawford officer: EVP, Chief Financial Officer AFLAC INCORPORATED, COLUMBUS GA 31999
Simard Frederic Jean Guy officer: SVP, CFO, Aflac U.S. 1932 WYNNTON ROAD, COLUMBUS GA 31999
James Todd Daniels officer: Sr. Vice President 1932 WYNNTON ROAD, COLUMBUS GA 31999