GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Brighthouse Financial Inc (NAS:BHF) » Definitions » Degree of Operating Leverage

BHF (Brighthouse Financial) Degree of Operating Leverage : -1.08 (As of Mar. 2025)


View and export this data going back to 2017. Start your Free Trial

What is Brighthouse Financial Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Brighthouse Financial's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.08. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BHF's Degree of Operating Leverage is ranked better than
76.28% of 333 companies
in the Insurance industry
Industry Median: 1.01 vs BHF: -1.08

Brighthouse Financial Degree of Operating Leverage Historical Data

The historical data trend for Brighthouse Financial'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.

Brighthouse Financial Degree of Operating Leverage Chart

Brighthouse Financial 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 1.51 5.25 1.81 3.14 -13.52

Brighthouse Financial 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 2.77 9.47 13.82 -13.52 -1.08

Competitive Comparison of Brighthouse Financial's Degree of Operating Leverage

For the Insurance - Life subindustry, Brighthouse Financial'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.


Brighthouse Financial's Degree of Operating Leverage Distribution in the Insurance Industry

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

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


;
;

Brighthouse Financial Degree of Operating Leverage Calculation

Brighthouse Financial'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
=( 834 (Mar. 2025) / -1282 (Mar. 2024) - 1 )/( 6689 (Mar. 2025) / 2653 (Mar. 2024) - 1 )
=-1.6505/1.5213
=-1.08***

* 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.


Brighthouse Financial  (NAS:BHF) 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.


Brighthouse Financial Degree of Operating Leverage Related Terms

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


Brighthouse Financial Business Description

Address
11225 North Community House Road, Gragg Building, Charlotte, NC, USA, 28277
Brighthouse Financial Inc is a United States-based provider of annuity products and life insurance through independent distribution channels and marketing arrangements with distribution partners. Its segments are Annuities, Life, Run-off and Corporate and Other. It derives a majority of the revenue from the Annuities segment which includes variable, fixed, index-linked, and income annuities. The life segment includes variable, term, universal, and whole life policies.
Executives
Vonda Huss officer: EVP, Chief HR Officer 11225 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Myles Lambert officer: EVP,Chief Dist. & Mktg.Officer 11225 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Eric T Steigerwalt director, officer: President and CEO 11225 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
John Rosenthal officer: EVP & Chief Investment Officer 334 MADISON AVENUE, MORRISTOWN NJ 07960
Edward A. Spehar officer: EVP & Chief Financial Officer 11225 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Philip V Bancroft director
Allie Lin officer: EVP & General Counsel 11225 N COMMUNITY HOUSE RD, CHARLOTTE NC 28277
Carol Juel director 777 LONG RIDGE ROAD, C/O CORPORATE SECRETARY, STAMFORD CT 06902
Kristine Toscano officer: Chief Accounting Officer 11225 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Stephen C Hooley director 2355 WAUKEGAN ROAD, BANNOCKBURN IL 60015
Patrick J. Shouvlin director 11225 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
William Francis Wallace director 11225 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Christine M. Debiase officer: EVP,Chief LegalOfficer&CorpSec 11225 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
C Edward Chaplin director C/O MBIA, 113 KING STREET, ARMONK NY 10504
Murphy Conor officer: Chief Product&Strategy Officer 11225 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 11225