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AMBC (Ambac Financial Group) Degree of Operating Leverage : 8.32 (As of Mar. 2025)


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What is Ambac Financial Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Ambac Financial Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 8.32. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AMBC's Degree of Operating Leverage is ranked worse than
87.65% of 340 companies
in the Insurance industry
Industry Median: 0.94 vs AMBC: 8.32

Ambac Financial Group Degree of Operating Leverage Historical Data

The historical data trend for Ambac Financial Group'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.

Ambac Financial Group Degree of Operating Leverage Chart

Ambac Financial Group 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 5.17 -3.09 1.51 -0.25 5.75

Ambac Financial Group 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 0.08 -0.15 -0.05 5.75 8.32

Competitive Comparison of Ambac Financial Group's Degree of Operating Leverage

For the Insurance - Specialty subindustry, Ambac Financial Group'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.


Ambac Financial Group's Degree of Operating Leverage Distribution in the Insurance Industry

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

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


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Ambac Financial Group Degree of Operating Leverage Calculation

Ambac Financial Group'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
=( -101.119 (Mar. 2025) / -14.46 (Mar. 2024) - 1 )/( 196.571 (Mar. 2025) / 114.279 (Mar. 2024) - 1 )
=5.993/0.7201
=8.32***

* 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.


Ambac Financial Group  (NYSE:AMBC) 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.


Ambac Financial Group Degree of Operating Leverage Related Terms

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


Ambac Financial Group Business Description

Traded in Other Exchanges
Address
One World Trade Center, New York, NY, USA, 10007
Ambac Financial Group Inc is a financial services holding company. It operates in two principal businesses segments: Insurance Distribution and Specialty Property & Casualty Insurance. Insurance Distribution segment includes Managing General Agents, Underwriters and other appointed and delegated underwriting businesses (collectively MGAs or MGA/Us), an insurance broker, and other distribution and underwriting businesses. Specialty Property & Casualty Insurance includes five carriers (collectively, Everspan). Key revenue is generated from Insurance Distribution.
Executives
Jeffrey Scott Stein director 601 TRAVIS, SUITE 1400, HOUSTON TX 77002
Michael D Price director 67 ORCHARD DRIVE, NEW CANAAN CT 06840
Claude Leblanc director, officer: Chief Executive Officer ONE BERMUDIANA ROAD, HAMILTON D0 HM 11
Kristi Ann Matus director C/O EQUITABLE HOLDINGS, INC., 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104
R Sharon Smith officer: Senior Managing Director ONE STATE STREET PLAZA, NEW YORK NY 10004
David Trick officer: Sr. MD., CFO & Treasurer AMBAC FINANCIAL GROUP, INC., ONE STATE STREET PLAZA, NEW YORK NY 10004
Stephen Michael Ksenak officer: Sr. MD & General Counsel AMBAC FINANCIAL GROUP, INC., ONE STATE STREET PLAZA, NEW YORK NY 10004
C James Prieur director
Lisa G Iglesias director 1 FOUNTAIN SQUARE, LAW DEPT. 7S730, CHATTANOOGA TN 37402
Daniel Mcginnis officer: Sr. MD & COO C/O AMBAC FINANCIAL GROUP, INC., ONE WORLD TRADE CENTER, 41ST FLOOR, NEW YORK NY 10007
Robert Bryan Eisman officer: Sr. MD & CAO AMBAC FINANCIAL GROUP INC., ONE STATE STREET PLAZA, NEW YORK NY 10004
Joan M Lammtennant director 40 WANTAGE AVE, BRANCHVILLE NJ 07890
David Barranco officer: Senior Managing Director C/O AMBAC FINANCIAL GROUP INC, ONE STATE STREET PLAZA, NEW YORK NY 10004
Tavakoli Nader director 551 FIFTH AVE 334TH FL, NEW YORK NY 10176
Alexander David Greene director 3200 INDUSTRIAL PARK ROAD, VAN BUREN AR 72956