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ALIT (Alight) Degree of Operating Leverage : 80.53 (As of Mar. 2025)


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What is Alight Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Alight's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 80.53. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ALIT's Degree of Operating Leverage is ranked worse than
97.04% of 2665 companies
in the Software industry
Industry Median: 0.79 vs ALIT: 80.53

Alight Degree of Operating Leverage Historical Data

The historical data trend for Alight'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.

Alight Degree of Operating Leverage Chart

Alight Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -6.75 0.54 4.21 834.30 34.53

Alight 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 11.72 -0.89 -0.20 34.53 80.53

Competitive Comparison of Alight's Degree of Operating Leverage

For the Software - Application subindustry, Alight'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.


Alight's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Alight's Degree of Operating Leverage distribution charts can be found below:

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


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Alight Degree of Operating Leverage Calculation

Alight'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
=( 74 (Mar. 2025) / -249 (Mar. 2024) - 1 )/( 2321 (Mar. 2025) / 2359 (Mar. 2024) - 1 )
=-1.2972/-0.0161
=80.53***

* 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.


Alight  (NYSE:ALIT) 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.


Alight Degree of Operating Leverage Related Terms

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


Alight Business Description

Industry
Traded in Other Exchanges
Address
320 South Canal Street, 50th Floor, Suite 5000, Chicago, IL, USA, 60606
Alight Inc is a technology-enabled services company delivering human capital management solutions to many of complex organizations. This includes the implementation and administration of employee benefits (e.g., health, wealth and leaves benefits) solutions, currently operates under one reportable segment, Employer Solutions. The Company completed the Divestiture of Alight's Professional Services segment and Alight's Payroll & HCM Outsourcing business within the Employer Solutions segment. The company operates in USA states and International market too.
Executives
Richard N Massey director, officer: Chief Executive Officer 900 S. SHACKLEFORD ROAD, SUITE 401, LITTLE ROCK AR 72211
Gregory R Goff officer: See Remarks C/O MORNINGSTAR, INC., 22 WEST WASHINGTON STREET, CHICAGO IL 60602
Gregory A. George officer: Chief Commercial Officer 4 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Foley William P Ii director FIDELITY NATIONAL FINANCIAL, INC., 601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204
Katie J. Rooney officer: Chief Financial Officer C/O ALIGHT INC., 4 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Stephan Scholl director, officer: Chief Executive Officer 4 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Dinesh V Tulsiani officer: Chief Strategy Officer C/O ALIGHT, INC., 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Blackstone Holdings I/ii Gp L.l.c. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Bx Tempo Ml Holdco 1 L.p. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Management Associates Vii Nq L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVENUE, NEW YORK NY 10154
Kausik Rajgopal director 4 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Lenore D Williams director 601 RIVERSIDE AVE, JACKSONVILLE FL 32204
Martin Felli officer: See Remarks 4 OVERLOOK POINT, LINCOLNSHIRE IL 60069
Bx Tempo Ml Holdco 2 Gp L.l.c. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Bx Tempo Ml Holdco 2 L.p. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154