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HCI (HCI Group) Degree of Operating Leverage : 0.69 (As of Mar. 2025)


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What is HCI Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. HCI Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.69. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HCI's Degree of Operating Leverage is ranked better than
54.97% of 342 companies
in the Insurance industry
Industry Median: 0.96 vs HCI: 0.69

HCI Group Degree of Operating Leverage Historical Data

The historical data trend for HCI 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.

HCI Group Degree of Operating Leverage Chart

HCI 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 -0.06 -1.39 -20.10 -26.43 1.24

HCI 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 -21.07 -90.31 4.14 1.24 0.69

Competitive Comparison of HCI Group's Degree of Operating Leverage

For the Insurance - Property & Casualty subindustry, HCI 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.


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

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

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


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HCI Group Degree of Operating Leverage Calculation

HCI 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
=( 209.856 (Mar. 2025) / 183.327 (Mar. 2024) - 1 )/( 760.094 (Mar. 2025) / 627.952 (Mar. 2024) - 1 )
=0.1447/0.2104
=0.69***

* 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.


HCI Group  (NYSE:HCI) 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.


HCI Group Degree of Operating Leverage Related Terms

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


HCI Group Business Description

Traded in Other Exchanges
Address
3802 Coconut Palm Drive, Tampa, FL, USA, 33619
HCI Group Inc is engaged in the property and casualty insurance business through two Florida domiciled insurance companies, Homeowners Choice Property & Casualty Insurance Company (HCPCI) and TypTap Insurance Company (TypTap). Both HCPCI and TypTap are authorized to underwrite various homeowners' property and casualty insurance products and allied lines business in the state of Florida and other states. The operating segments of the group are insurance operations, TypTap Group, reciprocal exchange operations, real estate operations, and corporate and other. It derives key revenue from the HCPCI Insurance operation segment.
Executives
Paresh Patel director 1520 GULF BLVD., APT. 1706, CLEARWATER FL 33767
Anthony Saravanos director 3802 COCONUT PALM DRIVE, TAMPA FL 33619
Andrew L. Graham officer: VP/Corporate Secretary 3802 COCONUT PALM DRIVE, TAMPA FL 33619
Sanjay Madhu director 425 EAST DAVIS BLVD., TAMPA FL 33606
James Mark Harmsworth officer: Chief Financial Officer 5300 W CYPRESS ST, SUITE 100, TAMPA FL 33607
Karin Sue Coleman officer: Executive Vice President 5300 W CYPRESS ST, SUITE 100, TAMPA FL 33607
Lauren L Valiente director 3802 COCONUT PALM DRIVE, TAMPA FL 33619
Susan Watts director 5300 W CYPRESS ST, SUITE 100, TAMPA FL 33607
Robert Wayne Burks director 1009 S STERLING AVENUE, TAMPA FL 33629
Peter Politis director 3802 COCONUT PALM DRIVE, TAMPA FL 33619
Gregory Politis director 965 SOUTH BAYSHORE BLVD., SAFETY HARBOR FL 34695
Eric Brandon Hoffman director C/O INTREPID GROUP HOLDINGS, LLC, ONE STAMFORD PLAZA, 263 TRESSER BLVD., STAMFORD CT 06901
George Apostolou director 3802 COCONUT PALM DRIVE, TAMPA FL 33619
James J Macchiarola director 3671 EXECUTIVE DRIVE, PALM HARBOR FL 34685
Loreen M Spencer director 5300 W CYPRESS ST, SUITE 100, TAMPA FL 33607