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HLNE (Hamilton Lane) Degree of Operating Leverage : 1.11 (As of Dec. 2024)


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What is Hamilton Lane Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hamilton Lane's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HLNE's Degree of Operating Leverage is ranked worse than
58.31% of 614 companies
in the Asset Management industry
Industry Median: 0.7 vs HLNE: 1.11

Hamilton Lane Degree of Operating Leverage Historical Data

The historical data trend for Hamilton Lane'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.

Hamilton Lane Degree of Operating Leverage Chart

Hamilton Lane Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.95 1.47 8.14 -0.48 3.49

Hamilton Lane Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -1.19 3.49 1.51 1.22 1.11

Competitive Comparison of Hamilton Lane's Degree of Operating Leverage

For the Asset Management subindustry, Hamilton Lane'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.


Hamilton Lane's Degree of Operating Leverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Hamilton Lane's Degree of Operating Leverage distribution charts can be found below:

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


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Hamilton Lane Degree of Operating Leverage Calculation

Hamilton Lane's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 383.548 (Dec. 2024) / 263.506 (Dec. 2023) - 1 )/( 691.656 (Dec. 2024) / 489.965 (Dec. 2023) - 1 )
=0.4556/0.4116
=1.11***

* 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.


Hamilton Lane  (NAS:HLNE) 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.


Hamilton Lane Degree of Operating Leverage Related Terms

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


Hamilton Lane Business Description

Traded in Other Exchanges
Address
110 Washington Street, Suite 1300, Conshohocken, PA, USA, 19428
Hamilton Lane Inc is a private market investment solutions provider in the United States. It works with its clients to conceive, structure, build out, manage and monitor portfolios of private markets funds and direct investments, and it helps them access a set of such investment opportunities around the world. The company offers a range of investment solutions across a range of private markets, including private equity, private credit, real estate, infrastructure, natural resources, growth equity, venture capital and impact. The company generate revenues mainly from management and advisory fees.
Executives
Hartley R. Rogers director, 10 percent owner, officer: Chairman 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428
Juan Delgado-moreira 10 percent owner, officer: Managing Director 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428
Oakville Number 2 Trust 10 percent owner 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428
Drew Thomas Carl officer: Principal Accounting Officer 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428-2053
Atul Varma officer: Chief Financial Officer 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428
Jeffrey Brian Armbrister officer: Chief Financial Officer 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428-2053
Reynoldo Vann Graves director 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428
Leslie F Varon director 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428
Tara Blackburn 10 percent owner ONE PRESIDENTIAL BOULEVARD, 4TH FLOOR, BALA CNYWYD PA 19004
Michael John Kelly 10 percent owner ONE PRESIDENTIAL BOULEVARD, 4TH FLOOR, BALA CYNWYD PA 19004
Edward B. Whittemore 10 percent owner 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428
Initial Trust Under The Frederick B. Whittemore 2008 Children's Trust Agreement Dated 11/25/2008 10 percent owner ONE PRESIDENTIAL BOULEVARD, 4TH FLOOR, BALA CYNWYD PA 19004
Laurence Whittemore 10 percent owner ONE PRESIDENTIAL BOULEVARD, 4TH FLOOR, BALA CYNWYD PA 19004
Barbara Sexton 10 percent owner 110 WASHINGTON STREET, SUITE 1300, CONSHOHOCKEN PA 19428
Jeff Meeker 10 percent owner ONE PRESIDENTIAL BOULEVARD, 4TH FLOOR, BALA CYNWYD PA 19004