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EG (Everest Group) Degree of Operating Leverage : -4.68 (As of Mar. 2025)


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What is Everest Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Everest Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -4.68. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EG's Degree of Operating Leverage is ranked better than
89.12% of 340 companies
in the Insurance industry
Industry Median: 0.94 vs EG: -4.68

Everest Group Degree of Operating Leverage Historical Data

The historical data trend for Everest 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.

Everest Group Degree of Operating Leverage Chart

Everest 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 -2.69 8.36 -9.47 11.24 -1.56

Everest 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 10.77 5.04 0.23 -1.56 -4.68

Competitive Comparison of Everest Group's Degree of Operating Leverage

For the Insurance - Reinsurance subindustry, Everest 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.


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

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

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


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Everest Group Degree of Operating Leverage Calculation

Everest 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
=( 1059 (Mar. 2025) / 2717 (Mar. 2024) - 1 )/( 17236 (Mar. 2025) / 15246 (Mar. 2024) - 1 )
=-0.6102/0.1305
=-4.68***

* 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.


Everest Group  (NYSE:EG) 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.


Everest Group Degree of Operating Leverage Related Terms

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


Everest Group Business Description

Traded in Other Exchanges
Address
141 Front Street, Seon Place - 4th Floor, P.O. Box HM 845, Hamilton, BMU, HM 19
Everest Group Ltd is a Bermuda-based reinsurance and insurance organization. It operates in the Reinsurance and Insurance business. It is a financial services institution focused on diversifying its portfolio and geographic presence. Through direct and indirect subsidiaries operating in the U.S. and internationally. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers, and general agents within the U.S., Bermuda, Canada, Europe, and South America. The Company conducts business through two reportable segments, Reinsurance and Insurance.
Executives
Geraldine Losquadro director 200 EAST 74TH STREET APT 10, NEW YORK CITY NY 10021
James Allan Williamson officer: EVP, Chief Operating Officer 100 EVEREST WAY, WARREN NJ 07059
Mike Karmilowicz officer: EVP, Pres/CEO Insurance Div 100 EVEREST WAY, WARREN NJ 07059
Galtney William F Jr director THE GALTNEY GROUP, INC., 820 GESSNER, SUITE 1000, HOUSTON TX 77024-4259
John A Graf director 477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938
Roger M. Singer director P.O. BOX 2756, DURANGO CO 81302
Juan C Andrade officer: President and CEO THE HARTFORD, ONE HARTFORD PLAZA, HARTFORD CT 06155
Mark Kociancic officer: EVP & CFO 477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938
Meryl D Hartzband director C/O THE NAVIGATORS GROUP, INC., 400 ATLANTIC STREET, 8TH FLOOR, STAMFORD CT 06901
Hazel Mcneilage director 16600 SWINGLEY RIDGE ROAD, CHESTERFIELD MO 63017
John A Weber director COPLEY SQUARE CAPITAL MANAGEMENT, 108 MYRTLE STREET, NORTH QUINCY MA 02171
Sanjoy Mukherjee officer: General Counsel 477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938
John P Doucette officer: Executive VP and CUO 477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938
Joseph V Taranto director, officer: Chairman and CEO EVEREST REINSURANCE CO, 100 EVEREST WAY, WARREN NJ 07059
Jonathan Zaffino officer: SVP & President Everest Nat'l 477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938