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BENF (Beneficient) Degree of Operating Leverage : 1.30 (As of Dec. 2024)


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What is Beneficient Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Beneficient's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.30. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BENF's Degree of Operating Leverage is ranked worse than
62.38% of 614 companies
in the Asset Management industry
Industry Median: 0.7 vs BENF: 1.30

Beneficient Degree of Operating Leverage Historical Data

The historical data trend for Beneficient'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.

Beneficient Degree of Operating Leverage Chart

Beneficient Annual Data
Trend Dec20 Dec21 Mar22 Mar23 Mar24
Degree of Operating Leverage
- - - 29.70 35.09

Beneficient Quarterly Data
Dec20 Mar21 Dec21 Mar22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 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 -30.48 35.09 0.46 0.65 1.30

Competitive Comparison of Beneficient's Degree of Operating Leverage

For the Asset Management subindustry, Beneficient'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.


Beneficient's Degree of Operating Leverage Distribution in the Asset Management Industry

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

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


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Beneficient Degree of Operating Leverage Calculation

Beneficient'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
=( -134.451 (Dec. 2024) / -2493.862 (Dec. 2023) - 1 )/( -20.08 (Dec. 2024) / -74.272 (Dec. 2023) - 1 )
=-0.9461/-0.7296
=1.30***

* 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.


Beneficient  (NAS:BENF) 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.


Beneficient Degree of Operating Leverage Related Terms

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


Beneficient Business Description

Traded in Other Exchanges
N/A
Address
325 N. Saint Paul Street, Suite 4850, Dallas, TX, USA, 75201
Beneficient is a technology-enabled financial services holding company that (together with its subsidiaries) provides simple, rapid, and cost-effective liquidity solutions to participants in the alternative asset industry through its end-to-end online platform, AltAccess. BCG's products and services are designed to meet the unmet needs of mid-to-high net-worth individual investors, small-to-midsize institutional investors, family offices, and fund general partners. Its bespoke liquidity solutions for otherwise illiquid alternative asset investments are delivered through proprietary technology and an innovative financing and trust structure. It has three reportable segments consisting of Ben Liquidity, Ben Custody and Customer ExAlt Trusts.
Executives
Jeff Welday officer: See Remarks 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Cangany Peter T Jr director 220 SOUTH 6TH STREET, SUITE 1200, MINNEAPOLIS MN 55402
Gwg Wind Down Trust 10 percent owner PO BOX 61209, 700 SMITH ST., HOUSTON TX 77208-1209
Maria S. Rutledge officer: Chief Technology Officer 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Elizabeth C. Freeman 10 percent owner PO BOX 61209, 700 SMITH ST., HOUSTON TX 77208-1209
Derek L. Fletcher director, officer: See Remarks 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Gwg Life Usa, Llc 10 percent owner 325 NORTH ST. PAUL STREET, SUITE 2650, DALLAS TX 75201
Gregory W. Ezell officer: Chief Financial Officer 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Scott W. Wilson officer: Chief Underwriting Officer 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Samuel Hikspoors officer: Chief Risk Officer 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Richard W Fisher director
James G. Silk director, officer: See Remarks 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Emily B. Hill director 325 N. ST. PAUL STREET, SUITE 4850, DALLAS TX 75201
Gwg Holdings, Inc. 10 percent owner 325 N. ST. PAUL STREET, SUITE 2650, DALLAS TX 75201
Brad K Heppner director, officer: See Remarks 325 N SAINT PAUL STREET, SUITE 1200, DALLAS TX 75201