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ICICI Prudential Life Insurance Co (BOM:540133) Degree of Operating Leverage : -1.93 (As of Mar. 2025)


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What is ICICI Prudential Life Insurance Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ICICI Prudential Life Insurance Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.93. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for ICICI Prudential Life Insurance Co's Degree of Operating Leverage or its related term are showing as below:

BOM:540133's Degree of Operating Leverage is ranked better than
79.71% of 340 companies
in the Insurance industry
Industry Median: 0.94 vs BOM:540133: -1.93

ICICI Prudential Life Insurance Co Degree of Operating Leverage Historical Data

The historical data trend for ICICI Prudential Life Insurance Co'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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ICICI Prudential Life Insurance Co Degree of Operating Leverage Chart

ICICI Prudential Life Insurance Co Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.01 0.79 -0.54 0.04 -1.93

ICICI Prudential Life Insurance Co 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 0.04 - - - -1.93

Competitive Comparison of ICICI Prudential Life Insurance Co's Degree of Operating Leverage

For the Insurance - Life subindustry, ICICI Prudential Life Insurance Co'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.


ICICI Prudential Life Insurance Co's Degree of Operating Leverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, ICICI Prudential Life Insurance Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where ICICI Prudential Life Insurance Co's Degree of Operating Leverage falls into.


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ICICI Prudential Life Insurance Co Degree of Operating Leverage Calculation

ICICI Prudential Life Insurance Co'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
=( 14775.5 (Mar. 2025) / 10431 (Mar. 2024) - 1 )/( 698860.7 (Mar. 2025) / 891363.8 (Mar. 2024) - 1 )
=0.4165/-0.216
=-1.93***

* 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.


ICICI Prudential Life Insurance Co  (BOM:540133) 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.


ICICI Prudential Life Insurance Co Degree of Operating Leverage Related Terms

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ICICI Prudential Life Insurance Co Business Description

Traded in Other Exchanges
Address
1089 Appasaheb Marathe Marg, ICICI Pru Life Towers, 1st and 2nd Floor, Cnergy IT Park, Prabhadevi, Mumbai, MH, IND, 400025
ICICI Prudential Life Insurance Co Ltd offers products across savings, investments, and protection categories that match the different life stage requirements of customers and enable them to achieve their long-term financial goals. The company has developed and implemented various initiatives to provide cost-effective products, superior quality services, consistent fund performance, and a hassle-free claim settlement experience to customers. Its segments are Par Life, Par Pension, Non Par Life, Non Par Pension, Non Par Variable, Non Par Variable Pension, Annuity Non Par, Health, Linked Life, Linked Pension, Linked Health, Linked Group Life, Linked Group Pension, and Group Pension Share holders.

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