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UTHR (United Therapeutics) Degree of Operating Leverage : 0.56 (As of Mar. 2025)


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What is United Therapeutics Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. United Therapeutics's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

UTHR's Degree of Operating Leverage is ranked better than
50.95% of 950 companies
in the Drug Manufacturers industry
Industry Median: 0.64 vs UTHR: 0.56

United Therapeutics Degree of Operating Leverage Historical Data

The historical data trend for United Therapeutics'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.

United Therapeutics Degree of Operating Leverage Chart

United Therapeutics 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 -272.27 -0.55 4.07 1.77 0.79

United Therapeutics 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 1.83 1.03 0.90 0.79 0.56

Competitive Comparison of United Therapeutics's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, United Therapeutics'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.


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

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

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


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United Therapeutics Degree of Operating Leverage Calculation

United Therapeutics'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
=( 1599.6 (Mar. 2025) / 1439.8 (Mar. 2024) - 1 )/( 2994.1 (Mar. 2025) / 2498.3 (Mar. 2024) - 1 )
=0.111/0.1985
=0.56***

* 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.


United Therapeutics  (NAS:UTHR) 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.


United Therapeutics Degree of Operating Leverage Related Terms

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


United Therapeutics Business Description

Traded in Other Exchanges
Address
1000 Spring Street, Silver Spring, MD, USA, 20910
United Therapeutics Corp specializes in drug development for pulmonary arterial hypertension (PAH), a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. The company markets and sells the following commercial therapies in the United States to treat PAH: Tyvaso DPI (treprostinil) Inhalation Powder, Remodulin Injection, Orenitram (treprostinil) Extended-Release Tablets, Adcirca (tadalafil) Tablets, and Unituxin. In addition, it is developing a pipeline of projects that includes new indications and delivery devices for existing products and new products to treat PAH and other conditions.
Executives
Paul A Mahon officer: EVP & General Counsel
Tommy G Thompson director 7711 CARONDELET, ST. LOUIS MO 63105
Raymond Dwek director
Christopher Patusky director
Michael Benkowitz officer: President and COO C/O UNITED THERAPEUTICS CORP, 1040 SPRING STREET, SILVER SPRING MD 20910
Ray Kurzweil director
Nilda Mesa director C/O UNITED THERAPEUTICS CORPORATION, 1040 SPRING STREET, SILVER SPRING MD 20910
Louis W Sullivan director
Judy D. Olian director 2000 AVENUE OF THE STARS 12TH FL, LOS ANGELES CA 90067
Richard Giltner director C/O UNITED THERAPEUTICS CORPORTION, 1735 CONNECTICUT AVE. NW, WASHINGTON DC 20009
James Edgemond officer: CFO and Treasurer 1040 SPRING STREET, SILVER SPRING MD 20910
Christopher Causey director
Martine A Rothblatt director, officer: Chief Executive Officer
Linda Maxwell director 1040 SPRING STREET, SILVER SPRING NC 27709
Katherine J Klein director STEINBERG HALL-DIETRICH HALL, 3620 LOCUST WALK, PHILADELPHIA PA 19104