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DHIL (Diamond Hill Investment Group) Degree of Operating Leverage : 4.90 (As of Mar. 2025)


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What is Diamond Hill Investment Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Diamond Hill Investment Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.90. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

DHIL's Degree of Operating Leverage is ranked worse than
85.83% of 614 companies
in the Asset Management industry
Industry Median: 0.725 vs DHIL: 4.90

Diamond Hill Investment Group Degree of Operating Leverage Historical Data

The historical data trend for Diamond Hill Investment 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.

Diamond Hill Investment Group Degree of Operating Leverage Chart

Diamond Hill Investment 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 0.67 1.53 1.03 3.89 2.25

Diamond Hill Investment 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 5.99 5.16 27.13 2.25 4.90

Competitive Comparison of Diamond Hill Investment Group's Degree of Operating Leverage

For the Asset Management subindustry, Diamond Hill Investment 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.


Diamond Hill Investment Group's Degree of Operating Leverage Distribution in the Asset Management Industry

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

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


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Diamond Hill Investment Group Degree of Operating Leverage Calculation

Diamond Hill Investment 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
=( 48.653 (Mar. 2025) / 32.865 (Mar. 2024) - 1 )/( 152.976 (Mar. 2025) / 139.327 (Mar. 2024) - 1 )
=0.4804/0.098
=4.90***

* 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.


Diamond Hill Investment Group  (NAS:DHIL) 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.


Diamond Hill Investment Group Degree of Operating Leverage Related Terms

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Diamond Hill Investment Group Business Description

Traded in Other Exchanges
Address
325 John H. McConnell Boulevard, Suite 200, Columbus, OH, USA, 43215
Diamond Hill Investment Group Inc sponsors, markets, and provides investment advisory and related services to various U.S. and foreign clients including mutual funds, separate accounts, and private investment funds. The company's objective is to fulfill a fiduciary duty to clients and secondary objectives to achieve an adequate long-term return for shareholders. The company generates its revenue from Investment advisory and fund administration fees.
Executives
Richard Scott Cooley director 325 JOHN H MCCONNELL BLVD, SUITE 200, COLUMBUS OH 43215
Laird James F Jr officer: Chief Financial Officer 375 N FRONT STREET, SUITE 300, COLUMBUS OH 43215
Paula R Meyer director ADVISORY HEDGED OPPORTUNITY FUND, 50590 AXP FINANCIAL CENTER, MINNEAPOLIS MN 55474
St. Pierre Nicole Renee director 325 JOHN H. MCCONNELL BLVD., SUITE 200, COLUMBUS OH 43215
L'quentus Thomas director 325 JOHN H MCCONNELL BLVD, SUITE 200, COLUMBUS OH 43215
Heather E Brilliant director, officer: Chief Executive Officer 325 JOHN H MCCONNELL BLVD, SUITE 200, COLUMBUS OH 43215
Jo Ann Quinif officer: President of DHCM 325 JOHN H. MCCONNELL BLVD., SUITE 200, COLUMBUS OH 43215
Thomas Edward Line officer: Chief Financial Officer 325 JOHN H. MCCONNELL BLVD., SUITE 200, COLUMBUS OH 43215
Mark Zinkula director 325 JOHN H MCCONNELL BLVD, SUITE 200, COLUMBUS OH 43215
Randolph J. Fortener director 325 JOHN H. MCCONNELL BLVD., STE. 200, COLUMBUS OH 43215
Dillon Roderick H Jr director, officer: Chief Executive Officer 180 BEACH DRIVE NE 2001, SAINT PETERSBURG FL 33701
Lisa M Wesolek officer: COO of DHCM 325 JOHN H. MCCONNELL BLVD., STE 200, COLUMBUS OH 43215
Bradley C Shoup director 325 JOHN H. MCCONNELL BLVD., SUITE 200, COLUMBUS OH 43215
Frances A Skinner director 138 PUTNAM STREET, MARIETTA OH 45750
Christopher M Bingaman officer: President of DHCM 325 JOHN H. MCCONNELL BLVD., STE. 200, COLUMBUS OH 43215