AMK (AssetMark Financial Holdings) Degree of Operating Leverage : 2.86 (As of Jun. 2024)

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What is AssetMark Financial Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. AssetMark Financial Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 2.86. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

AMK's Degree of Operating Leverage is not ranked
in the Asset Management industry.
Industry Median: 0.7 vs AMK: 2.86

AssetMark Financial Holdings Degree of Operating Leverage Historical Data

The historical data trend for AssetMark Financial 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.

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AssetMark Financial Holdings Degree of Operating Leverage Chart

AssetMark Financial Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Degree of Operating Leverage

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-3.47

-23.22

32.30

12.71

1.72

AssetMark Financial Holdings Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
Degree of Operating Leverage	Get a 7-Day Free Trial															2.95	2.08	1.72	3.57	2.86

Competitive Comparison of AssetMark Financial Holdings's Degree of Operating Leverage

For the Asset Management subindustry, AssetMark Financial 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.

AssetMark Financial Holdings's Degree of Operating Leverage Distribution in the Asset Management Industry

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

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

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AssetMark Financial Holdings Degree of Operating Leverage Calculation

AssetMark Financial Holdings's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage	=	% Change in EBIT^**	/	% Change in Revenue
	=	( 202.895 (Jun. 2024) / 150.876 (Jun. 2023) - 1 )	/	( 737.462 (Jun. 2024) / 658.004 (Jun. 2023) - 1 )
	=	0.3448	/	0.1208
	=	2.86^***

** 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.

AssetMark Financial Holdings (NYSE:AMK) 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.

AssetMark Financial Holdings Degree of Operating Leverage Related Terms

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

AssetMark Financial Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » AssetMark Financial Holdings Inc (NYSE:AMK) » Definitions » Degree of Operating Leverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1655 Grant Street, 10th Floor, Concord, CA, USA, 94520

Website

https://www.assetmark.com

AssetMark Financial Holdings Inc is a provider of extensive wealth management and technology solutions that power independent financial advisers and their clients. It provides an end-to-end experience, spanning nearly all elements of an adviser's engagement with the client, from initial conversations to ongoing financial planning discussions, including performance reporting and billing. In addition, the company's platform provides tools and capabilities for advisers to better manage their day-to-day business activities, giving them more time for meaningful conversations with investors.

Executives

Huatai Securities Co., Ltd.	10 percent owner	NO.228 MIDDLE JIANGDONG ROAD, NANJING, JIANGSU PROVINCE F4 210019
Mcnatt Joel David Jr	officer: EVP, Investment Solutions	C/O ASSETMARK FINANCIAL HOLDINGS INC., 1655 GRANT ST 10TH FLOOR, CONCORD CA 94520
Mukesh Mehta	officer: EVP, Chief Information Officer	C/O ASSETMARK FINANCIAL HOLDINGS, INC., 1655 GRANT STREET, 10TH FLOOR, CONCORD CA 94520
Michael Kim	officer: EVP, Chief Client Officer	C/O ASSETMARK FINANCIAL HOLDINGS, INC., 1655 GRANT STREET, 10TH FLOOR, CONCORD CA 94520
Ted F. Angus	officer: EVP, General Counsel	C/O ASSETMARK FINANCIAL HOLDINGS, INC., 1655 GRANT STREET, 10TH FLOOR, CONCORD CA 94520
Gary G. Zyla	officer: EVP, Chief Financial Officer	C/O ASSETMARK FINANCIAL HOLDINGS, INC., 1655 GRANT STREET, 10TH FLOOR, CONCORD CA 94520
Carrie E. Hansen	officer: EVP, Chief Operating Officer	C/O ASSETMARK FINANCIAL HOLDINGS, INC., 1655 GRANT STREET, 10TH FLOOR, CONCORD CA 94520
Esi Minta-jacobs	officer: EVP, Prgm Mgmt & HR	C/O ASSETMARK FINANCIAL HOLDINGS, INC., 1655 GRANT STREET, 10TH FLOOR, CONCORD CA 94520
Natalie Grace Wolfsen	officer: EVP, Chief Solutions Officer	C/O ASSETMARK FINANCIAL HOLDINGS, INC., 1655 GRANT STREET, 10TH FLOOR, CONCORD CA 94520
Jeremiah H Chafkin	officer: EVP, Chief Investment Officer	C/O THE CHARLES SCHWAB CORPORATION, 120 KEARNY STREET, SAN FRANCISCO CA 94108
John Hahn	officer: SVP, Finance & Reporting (PAO)	C/O ASSETMARK FINANCIAL HOLDINGS, INC., 1655 GRANT STREET 10TH FLOOR, CONCORD CA 94520
Joseph M Velli	director
Charles G Goldman	director, officer: President and CEO	C/O THE CHARLES SCHWAB CORPORATION, 120 KEARNY STREET, SAN FRANCISCO CA 94108
Lei Wang	director	1655 GRANT STREET, 10TH FLOOR, CONCORD CA 94520
Xiaoning Jiao	director	1655 GRANT STREET, 10TH FLOOR, CONCORD CA 94520