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PAHC (Phibro Animal Health) Degree of Operating Leverage : 3.92 (As of Mar. 2025)


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What is Phibro Animal Health Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Phibro Animal Health's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.92. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PAHC's Degree of Operating Leverage is ranked worse than
76.47% of 952 companies
in the Drug Manufacturers industry
Industry Median: 0.62 vs PAHC: 3.92

Phibro Animal Health Degree of Operating Leverage Historical Data

The historical data trend for Phibro Animal Health'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.

Phibro Animal Health Degree of Operating Leverage Chart

Phibro Animal Health Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.76 3.36 0.60 -3.89 -13.39

Phibro Animal Health 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 -10.22 -13.39 0.21 2.18 3.92

Competitive Comparison of Phibro Animal Health's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Phibro Animal Health'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.


Phibro Animal Health's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Phibro Animal Health's Degree of Operating Leverage distribution charts can be found below:

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


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Phibro Animal Health Degree of Operating Leverage Calculation

Phibro Animal Health'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
=( 82.708 (Mar. 2025) / 47.295 (Mar. 2024) - 1 )/( 1190.682 (Mar. 2025) / 999.564 (Mar. 2024) - 1 )
=0.7488/0.1912
=3.92***

* 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.


Phibro Animal Health  (NAS:PAHC) 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.


Phibro Animal Health Degree of Operating Leverage Related Terms

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


Phibro Animal Health Business Description

Traded in Other Exchanges
N/A
Address
300 Frank W. Burr Boulevard, Suite 21, 3rd Floor, Glenpointe Centre East, Teaneck, NJ, USA, 07666-6712
Phibro Animal Health Corp operates as a diversified animal health and mineral nutrition company. It develops, manufactures, and markets products for a range of food animals comprising poultry, swine, beef and dairy cattle, and aquaculture. The product portfolio of the company includes animal health products such as antibacterials, anticoccidials, nutritional specialty products and vaccines, and mineral nutrition products. The company operates through three segments, Animal Health, Mineral Nutrition, and Performance Products, of which key revenue is derived from the Animal Health segment which relates to the development, manufacturing, and marketing of antibacterials, nutritional specialty products, and vaccines. The entity sells its products in the U.S. and other international countries.
Executives
E Thomas Corcoran director
Judith Weinstein officer: See Remarks C/O PHIBRO ANIMAL HEALTH CORP, 300 FRANK W. BURR BOULEVARD, STE 21, TEANECK NJ 07666
Alejandro Bernal director C/O ZOETIS INC., 10 SYLVAN WAY, PARSIPPANY NJ 07054
Larry Lee Miller officer: Chief Operating Officer 8 HAZELWOOD COURT, WARREN NJ 07059
Damian Finio officer: Chief Financial Officer C/O IGI LABORATORIES, INC., 105 LINCOLN AVENUE, BUENA NJ 08310
Robin Aukerman officer: President,North America Region C/O PHIBRO, GLENPOINTE CENTRE EAST, 3RD FL, 300 FRANK W. BURR BLVD, STE 21, TEANECK NJ 07666
Daniel M Bendheim director, officer: Exec. VP, Corporate Strategy 300 FRANK W. BURR BOULEVARD, SUITE 21, TEANECK NJ 07666
Dean J Warras officer: Pres Animal Health & Nutr N.A. 5113 SPYGLASS HILL, QUINCY IL 62305
Jack Bendheim director, 10 percent owner, officer: President and CEO C/O EMPIRE RESOURCES, INC., 1 PARKER PLAZA, SUIET 10, FORT LEE NJ 07024
Bfi Co., Llc 10 percent owner 300 FRANK W. BURR BLVD., STE 21, TEANECK NJ 07666
Jonathan Bendheim director GLENPOINTE CENTRE EAST, 3RD FLOOR, 300 FRANK W. BURR BLVD. SUITE 21, TEANECK NJ 07666
Anthony Andolino officer: SEE REMARKS GLENPOINTE CENTRE EAST, 3RD FLOOR, 300 FRANK W. BURR BLVD., STE 21, TEANECK NJ 07666
Richard G Johnson officer: Chief Financial Officer 7 WEST 96TH STREET, APT. 11C, NEW YORK NY 10025
Gerald K Carlson director 2496 OLD BEACH ROAD, WAYZATA MN 55391
Thomas G Dagger officer: SVP, Gen Counsel and Corp Sec 41 WILCOX DRIVE, MOUNTAIN LAKES NJ 07046