GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Atlantic American Corp (NAS:AAME) » Definitions » Degree of Operating Leverage

AAME (Atlantic American) Degree of Operating Leverage : -11.67 (As of Mar. 2025)


View and export this data going back to 1984. Start your Free Trial

What is Atlantic American Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Atlantic American's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -11.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AAME's Degree of Operating Leverage is ranked better than
92.24% of 335 companies
in the Insurance industry
Industry Median: 1.01 vs AAME: -11.67

Atlantic American Degree of Operating Leverage Historical Data

The historical data trend for Atlantic American'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.

Atlantic American Degree of Operating Leverage Chart

Atlantic American 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 -625.28 -28.29 6.73 58.95 -219.14

Atlantic American 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 -102.49 226.79 -508.29 -219.14 -11.67

Competitive Comparison of Atlantic American's Degree of Operating Leverage

For the Insurance - Life subindustry, Atlantic American'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.


Atlantic American's Degree of Operating Leverage Distribution in the Insurance Industry

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

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


;
;

Atlantic American Degree of Operating Leverage Calculation

Atlantic American'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
=( 1.615 (Mar. 2025) / 2.121 (Mar. 2024) - 1 )/( 191.355 (Mar. 2025) / 187.521 (Mar. 2024) - 1 )
=-0.2386/0.0204
=-11.67***

* 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.


Atlantic American  (NAS:AAME) 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.


Atlantic American Degree of Operating Leverage Related Terms

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


Atlantic American Business Description

Traded in Other Exchanges
N/A
Address
4370 Peachtree Road, North East, Atlanta, GA, USA, 30319
Atlantic American Corp operates in specialty markets within the life and health and property and casualty insurance industries. The company has two segments: American Southern, It provides property and casualty insurance including bodily injury and property damage liability coverage, uninsured motorist coverage, and physical damage coverage for commercial accounts, and Bankers Fidelity, the company's life and health operations offer a variety of life and supplemental health products including ordinary and term life insurance, Medicare supplement, and other health insurance.
Executives
Harriett J Robinson director, 10 percent owner, other: Trustee under Rule 16a-8
Bankers Fidelity Life Insurance Co other: Wholly owned subsidiary 4370 PEACHTREE ROAD NE, ATLANTA GA 30319
Jeffrey Ross Franklin officer: CFO 4370 PEACHTREE ROAD NE, ATLANTA GA 30319
Mark E. Preisinger director C/O ATLANTIC AMERICAN CORPORATION, 4370 PEACHTREE ROAD, SUITE 200, ATLANTA GA 30319
D Keehln Wheeler director 3731 WIEUCA ROAD, ATLANTA GA 30342
William H Whaley director 3980 RANDALL MILL RD NW, ATLANTA GA 30327
Joseph M Scheerer director 41 PARK AVENUE, APARTMENT #8H, NEW YORK NY 10016
Samuel E Hudgins director
Edward E Elson director
Dom H Wyant director
J Mack Robinson 10 percent owner 4370 PEACHTREE RD, ATLANTA GA 30319
Robin Robinson Howell director 3656 TUXEDO ROAD NW, ATLANTA GA 30305
Sample John G Jr officer: Senior Vice President & CFO
Howell Hilton H Jr director, officer: Chairman, President & CEO 4370 PEACHTREE ROAD, N.E., ATLANTA GA 30319
Scott G Thompson director, officer: Pres & CEO Am. Sou. Ins. Co.