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PFE (Pfizer) Degree of Operating Leverage : 91.15 (As of Mar. 2025)


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What is Pfizer Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pfizer's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 91.15. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

PFE's Degree of Operating Leverage is ranked worse than
97.57% of 945 companies
in the Drug Manufacturers industry
Industry Median: 0.87 vs PFE: 91.15

Pfizer Degree of Operating Leverage Historical Data

The historical data trend for Pfizer'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.

Pfizer Degree of Operating Leverage Chart

Pfizer 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 -18.76 2.12 1.65 2.21 35.11

Pfizer 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 2.40 3.61 3.14 35.11 91.15

Competitive Comparison of Pfizer's Degree of Operating Leverage

For the Drug Manufacturers - General subindustry, Pfizer'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.


Pfizer's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

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

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


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Pfizer Degree of Operating Leverage Calculation

Pfizer'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
=( 10341 (Mar. 2025) / 890 (Mar. 2024) - 1 )/( 62463 (Mar. 2025) / 55945 (Mar. 2024) - 1 )
=10.6191/0.1165
=91.15***

* 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.


Pfizer  (NYSE:PFE) 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.


Pfizer Degree of Operating Leverage Related Terms

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


Pfizer Business Description

Industry
Address
66 Hudson Boulevard East, New York, NY, USA, 10001-2192
Pfizer is one of the world's largest pharmaceutical firms, with annual sales close to $50 billion (excluding covid-19-related product sales). While it historically sold many types of healthcare products and chemicals, now prescription drugs and vaccines account for the majority of sales. Top sellers include pneumococcal vaccine Prevnar 13, cancer drug Ibrance, and cardiovascular treatment Eliquis. Pfizer sells these products globally, with international sales representing close to 50% of total sales. Within international sales, emerging markets are a major contributor.
Executives
Jennifer B. Damico officer: SVP & Controller C/O PFIZER INC. CORPORATE SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Ronald E Blaylock director
Scott Gottlieb director MOLECULAR INSIGHT PHARMACEUTICALS, 160 SECOND STREET, CAMBRIDGE MA 02142
Christoffel Boshoff officer: Executive Vice President 66 HUDSON BOULEVARD EAST, NEW YORK NY 10001-2192
Payal Sahni officer: Executive Vice President ATTN: PFIZER CORP. SECRETARY, 235 EAST 42ND ST., NEW YORK NY 10017
Carapezzi William R Jr officer: Executive Vice President 600 MOUNTAIN AVENUE, MURRAY HILL NJ 07921
Douglas M Lankler officer: Senior Vice President PFIZER INC. ATTN: CORPORATE SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Mikael Dolsten officer: Senior Vice President 5 GIRALDA FARMS, MADISON NJ 07940
David M Denton officer: Chief Financial Officer & EVP 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
William Pao officer: Executive Vice President C/O CORPORATE SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Michael Mcdermott officer: Executive Vice President C/O PFIZER INC. CORPORATE SECRETARY, 235 EAST 42ND STREET, 235 EAST 42ND STREET NY 10017
Rady A Johnson officer: Executive Vice President PFIZER INC. ATTN CORP. SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Alexander R Mackenzie officer: Executive Vice President C/O PFIZER CORP. SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Sally Susman officer: Senior Vice President 767 FIFTH AVE, EOTIC LAWDER CORP, NEW YORK NY 10153
Angela Hwang officer: Group President 235 EAST 42ND STREET, ATTN: CORPORATE SECRETARY, NEW YORK NY 10017