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AUB Group (ASX:AUB) Degree of Operating Leverage : 0.36 (As of Dec. 2024)


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What is AUB Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. AUB Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 0.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ASX:AUB's Degree of Operating Leverage is ranked better than
58.48% of 342 companies
in the Insurance industry
Industry Median: 0.96 vs ASX:AUB: 0.36

AUB Group Degree of Operating Leverage Historical Data

The historical data trend for AUB 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.

AUB Group Degree of Operating Leverage Chart

AUB Group Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.81 14.66 3.01 0.42 2.25

AUB Group Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 0.18 0.42 1.31 2.25 0.36

Competitive Comparison of AUB Group's Degree of Operating Leverage

For the Insurance Brokers subindustry, AUB 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.


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

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

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


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AUB Group Degree of Operating Leverage Calculation

AUB Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 287.178 (Dec. 2024) / 277.009 (Dec. 2023) - 1 )/( 977.231 (Dec. 2024) / 886.371 (Dec. 2023) - 1 )
=0.0367/0.1025
=0.36***

* 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.


AUB Group  (ASX:AUB) 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.


AUB Group Degree of Operating Leverage Related Terms

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


AUB Group Business Description

Industry
Traded in Other Exchanges
Address
141 Walker Street, Level 14, North Sydney, Sydney, NSW, AUS, 2060
AUB Group is the second-largest general insurance broker network in Australia and New Zealand. It has an ownership in brokerage businesses that collectively write over AUD 5 billion in premiums. It also owns equity stakes in 29 underwriting agencies. AUB derives revenue from commissions (from insurers, ultimately paid for by AUB's customers), based on gross written premium from agencies it owns, and a share of profits from associates and joint ventures. GWP is split among personal (5%), small to medium enterprises (65%), and corporates (30%).