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BGC (BGC Group) Degree of Operating Leverage : 4.26 (As of Mar. 2025)


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What is BGC Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. BGC Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.26. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

BGC's Degree of Operating Leverage is ranked worse than
82.11% of 626 companies
in the Capital Markets industry
Industry Median: 0.755 vs BGC: 4.26

BGC Group Degree of Operating Leverage Historical Data

The historical data trend for BGC 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.

BGC Group Degree of Operating Leverage Chart

BGC 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 7.33 -25.25 3.35 -1.13 8.37

BGC 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 1.81 16.74 13.69 8.37 4.26

Competitive Comparison of BGC Group's Degree of Operating Leverage

For the Capital Markets subindustry, BGC 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.


BGC Group's Degree of Operating Leverage Distribution in the Capital Markets Industry

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

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


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BGC Group Degree of Operating Leverage Calculation

BGC 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
=( 277.616 (Mar. 2025) / 177.201 (Mar. 2024) - 1 )/( 2290.356 (Mar. 2025) / 2021.277 (Mar. 2024) - 1 )
=0.5667/0.1331
=4.26***

* 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.


BGC Group  (NAS:BGC) 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.


BGC Group Degree of Operating Leverage Related Terms

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


BGC Group Business Description

Traded in Other Exchanges
Address
499 Park Avenue, New York, NY, USA, 10022
BGC Group Inc is a brokerage and financial technology company that serves financial markets, energy, and commodities markets. Its service and product offerings include brokerage for a wide range of financial products, including fixed income, equities, commodities, derivatives, and real estate, software solutions for trading platforms, clearing, trade execution, and other back-office services. Its clients mostly include banks, financial institutions, and corporate clients. BGC operates in one reportable segment, which is providing brokerage services. Geographically, the company generates a majority of its revenue from Europe, Middle East and Africa (EMEA), followed by the Americas and the Asia-Pacific region.
Executives
David Richards director C/O BGC PARTNERS, INC., 499 PARK AVENUE, NEW YORK NY 10022
Sean A Windeatt officer: Chief Operating Officer C/O BGC PARTNERS, INC., 499 PARK AVENNUE NY 10022
William Dean Addas director C/O DEUTSCHE BANK, 300 S. GRAND AVENUE, LOS ANGELES CA 90071-3109
Jason W. Hauf officer: Chief Financial Officer BGC PARTNERS, 499 PARK AVENUE, NEW YORK NY 10022
Arthur U Mbanefo director 280 PARK AVENUE 40 WEST, CO ORIX, NEW YORK NY 10017
Stephen M Merkel officer: EVP and General Counsel C/O BGC PARTNERS, INC., 499 PARK AVENUE, NEW YORK NY 10022
Linda A Bell director C/O BGC PARTNERS, INC., 499 PARK AVENUE, NEW YORK NY 10022
Martin Laguerre director C/O BGC PARTNERS, INC., 499 PARK AVENUE, NEW YORK NY 10022
Steven Bisgay officer: Chief Financial Officer 545 WASHINGTON BLVD, JERSEY CITY NJ 07310
Cf Group Management Inc director, 10 percent owner 135 EAST 57TH ST, NEW YORK NY 10022
Cantor Fitzgerald, L. P. director, 10 percent owner 110 EAST 59TH STREET, NEW YORK NY 10022
Sean Galvin officer: Chief Accounting Officer 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310
William J Moran director 135 EAST 57TH ST, NEW YORK NY 10022
Howard W Lutnick director, 10 percent owner, officer: Chief Executive Officer
Steven R Mcmurray officer: Chief Financial Officer C/O BGC PARTNERS, INC., 499 PARK AVENUE, NEW YORK NY 10022