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ACT (Enact Holdings) Degree of Operating Leverage : 1.17 (As of Mar. 2025)


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What is Enact Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Enact Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ACT's Degree of Operating Leverage is ranked worse than
53.96% of 341 companies
in the Insurance industry
Industry Median: 0.96 vs ACT: 1.17

Enact Holdings Degree of Operating Leverage Historical Data

The historical data trend for Enact Holdings'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.

Enact Holdings Degree of Operating Leverage Chart

Enact Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -2.43 41.99 -11.15 -0.91 0.65

Enact Holdings Quarterly Data
Dec19 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 -1.58 -0.19 0.72 0.65 1.17

Competitive Comparison of Enact Holdings's Degree of Operating Leverage

For the Insurance - Specialty subindustry, Enact Holdings'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.


Enact Holdings's Degree of Operating Leverage Distribution in the Insurance Industry

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

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


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Enact Holdings Degree of Operating Leverage Calculation

Enact Holdings'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
=( 934.048 (Mar. 2025) / 884.68 (Mar. 2024) - 1 )/( 1220.004 (Mar. 2025) / 1164.334 (Mar. 2024) - 1 )
=0.0558/0.0478
=1.17***

* 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.


Enact Holdings  (NAS:ACT) 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.


Enact Holdings Degree of Operating Leverage Related Terms

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


Enact Holdings Business Description

Traded in Other Exchanges
N/A
Address
8325 Six Forks Road, Raleigh, NC, USA, 27615
Enact Holdings Inc is a private mortgage insurance company serving the United States housing finance market. The principal mortgage insurance customers are originators of residential mortgage loans who determine which mortgage insurer or insurers will be used for the placement of mortgage insurance written on loans originated. The company is engaged in writing and assuming residential mortgage guaranty insurance.
Executives
James Mcmullen officer: Controller C/O GENWORTH MORTGAGE HOLDINGS, INC., 8325 SIX FORKS ROAD, RALEIGH NC 27615
Genworth Holdings, Inc. 10 percent owner 6620 WEST BROAD STREET, RICHMOND VA 23230
Brian Gould officer: EVP & Chief Operations Officer 8325 SIX FORKS ROAD, RALEIGH NC 27615
Evan Stolove officer: EVP, Gen. Counsel & Secretary 8325 SIX FORKS ROAD, RALEIGH NC 27615
Michael Derstine officer: EVP and Chief Risk Officer 8325 SIX FORKS ROAD, RALEIGH NC 27615
Rohit Gupta director, officer: President and CEO C/O GENWORTH FINANCIAL, INC., 6620 WEST BROAD STREET, RICHMOND VA 23230
Jerome T Upton director GENWORTH FINANCIAL, INC., 6620 WEST BROAD STREET, RICHMOND VA 23230
Michael A Bless director C/O ROCKWELL INTERNATIONAL INC, 777 E. WISCONSIN AVE #1400, MILWAUKEE WI 53202
Sheehan Daniel J Iv director 6620 WEST BROAD STREET, RICHMOND VA 23230
Hardin Dean Mitchell officer: EVP, CFO and Treasurer 8325 SIX FORKS ROAD, RALEIGH NC 27615
Anne G Waleski director 1508 WEST AVENUE, RICHMOND VA 23220
Westley V Thompson director THE PHOENIX COMPANIES, INC., ONE AMERICAN ROW, HARTFORD CT 06102
Debra Still director 520 MADISON AVE, 32ND FL, C/O CHIMERA INVESTMENT CORPORATION, NEW YORK NY 10022
John D Fisk director C/O AGNC INVESTMENT CORP., 7373 WISCONSIN AVENUE, 22ND FLOOR, BETHESDA MD 20814
Restrepo Robert P Jr director