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APG (APi Group) Degree of Operating Leverage : 5.02 (As of Mar. 2025)


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What is APi Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. APi Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.02. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

APG's Degree of Operating Leverage is ranked worse than
79.44% of 1668 companies
in the Construction industry
Industry Median: 0.99 vs APG: 5.02

APi Group Degree of Operating Leverage Historical Data

The historical data trend for APi 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.

APi Group Degree of Operating Leverage Chart

APi Group Annual Data
Trend Dec17 Aug18 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 12.07 -20.86 0.86 12.93 20.21

APi 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 11.92 32.43 33.65 20.21 5.02

Competitive Comparison of APi Group's Degree of Operating Leverage

For the Engineering & Construction subindustry, APi 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.


APi Group's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, APi Group's Degree of Operating Leverage distribution charts can be found below:

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


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APi Group Degree of Operating Leverage Calculation

APi 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
=( 463 (Mar. 2025) / 399 (Mar. 2024) - 1 )/( 7136 (Mar. 2025) / 6915 (Mar. 2024) - 1 )
=0.1604/0.032
=5.02***

* 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.


APi Group  (NYSE:APG) 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.


APi Group Degree of Operating Leverage Related Terms

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


APi Group Business Description

Industry
Traded in Other Exchanges
Address
c/o APi Group, Inc, 1100 Old Highway 8 NW, New Brighton, MN, USA, 55112
APi Group Corp operates in two segments: Safety Services segment includes providing safety services in North America, Asia Pacific, and Europe, focusing on end-to-end integrated occupancy systems (fire protection solutions, Heating, Ventilation, and Air Conditioning and entry systems), including design, installation, inspection, and service of these integrated systems. These services are provided in commercial, education, healthcare, high tech, industrial, and special-hazard settings. Specialty Services segment includes providing a variety of infrastructure services and specialized industrial plant services, which include maintenance and repair of critical infrastructure such as underground electric, gas, water, sewer, and telecommunications infrastructure.
Executives
Ashken Ian G H director C/O MARIPOSA CAPITAL, LLC, 5200 BLUE LAGOON DRIVE, SUITE 855, MIAMI FL 33126
Louis Lambert officer: See Remarks C/O API GROUP CORPORATION, 1100 OLD HIGHWAY 8 NW, NEW BRIGHTON MN 55112
James E Lillie director C/O MOORE CORPORATION LIMITED, ONE CANTERBURY GREEN, STAMFORD CT 06901
Martin E Franklin director C/O MARIPOSA CAPITAL, LLC, 5200 BLUE LAGOON DRIVE, SUITE 855, MIAMI FL 33126
Viking Global Investors Lp 10 percent owner 600 WASHINGTON BLVD., FLOOR 11, STAMFORD CT 06901
Kevin Krumm officer: Chief Financial Officer C/O API GROUP CORPORATION, 1100 OLD HIGHWAY NW 8, NEW BRIGHTON MN 55112
Fd Juno Holdings L.p. 10 percent owner C/O THE BLACKSTONE GROUP INC., 345 PARK AVENUE, NEW YORK NY 10154
Juno Lower Holdings L.p. 10 percent owner C/O THE BLACKSTONE GROUP INC., 345 PARK AVENUE, NEW YORK NY 10154
Btoa L.l.c. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Bto De Gp - Nq L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP INC., 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Tactical Opportunities Associates L.l.c. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVE., NEW YORK NY 10154
Bto Holdings Manager L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP, 345 PARK AVE., NEW YORK NY 10154
Blackstone Tactical Opportunities Fund - Fd L.p. 10 percent owner C/O THE BLACKSTONE GROUP INC., 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Tactical Opportunities Associates Iii - Nq L.p. 10 percent owner C/O THE BLACKSTONE GROUP INC., 345 PARK AVENUE, NEW YORK NY 10154
Blackstone Juno Holdings L.p. 10 percent owner C/O THE BLACKSTONE GROUP INC., 345 PARK AVENUE, NEW YORK NY 10154