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HRTG (Heritage Insurance Holdings) Degree of Operating Leverage : 5.83 (As of Mar. 2025)


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What is Heritage Insurance Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Heritage Insurance Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 5.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Heritage Insurance Holdings's Degree of Operating Leverage or its related term are showing as below:

HRTG's Degree of Operating Leverage is ranked worse than
85.63% of 341 companies
in the Insurance industry
Industry Median: 0.96 vs HRTG: 5.83

Heritage Insurance Holdings Degree of Operating Leverage Historical Data

The historical data trend for Heritage Insurance Holdings'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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Heritage Insurance Holdings Degree of Operating Leverage Chart

Heritage Insurance Holdings 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 -4.95 -119.43 26.82 -12.71 3.77

Heritage Insurance Holdings 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 -13.99 160.76 11.71 3.77 5.83

Competitive Comparison of Heritage Insurance Holdings's Degree of Operating Leverage

For the Insurance - Property & Casualty subindustry, Heritage Insurance Holdings'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.


Heritage Insurance Holdings's Degree of Operating Leverage Distribution in the Insurance Industry

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

* The bar in red indicates where Heritage Insurance Holdings's Degree of Operating Leverage falls into.


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Heritage Insurance Holdings Degree of Operating Leverage Calculation

Heritage Insurance Holdings'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
=( 113.342 (Mar. 2025) / 65.829 (Mar. 2024) - 1 )/( 856.604 (Mar. 2025) / 762.181 (Mar. 2024) - 1 )
=0.7218/0.1239
=5.83***

* 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.


Heritage Insurance Holdings  (NYSE:HRTG) 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.


Heritage Insurance Holdings Degree of Operating Leverage Related Terms

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


Heritage Insurance Holdings Business Description

Traded in Other Exchanges
Address
1401 North Westshore Boulevard, Tampa, FL, USA, 33607
Heritage Insurance Holdings Inc is a regional property and casualty insurance company that offers a variety of personal and commercial insurance products. Through its subsidiaries, Heritage Property & Casualty Insurance, Narragansett Bay Insurance, and Zephyr Insurance, the company issues personal residential property insurance in various states in the United States. It also offers commercial residential insurance predominantly for its Florida properties. Heritage Insurance manages insurance underwriting, customer services, actuarial analysis, distribution, and claims processing internally. Company operates in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina.
Executives
Panagiotis Apostolou director 2600 MCCORMICK DRIVE, SUITE 300, CLEARWATER IL 33759
Paul L Whiting director 2910 BAY TO BAY BLVD #200, TAMPA FL 33629
Ernie J Garateix officer: Chief Operating Officer 2600 MCCORMICK DRIVE, SUITE 300, CLEARWATER IL 33759
Kirk Lusk officer: Chief Financial Officer 2600 MCCORMICK DRIVE, SUITE 300, CLEARWATER FL 33759
Nicholas George Pappas director 2600 MCCORMICK DRIVE, SUITE 300, CLEARWATER IL 33759
Richard A Widdicombe director, officer: President P O BOX 407193, FORT LAUDERDALE FL 33340
Raymond T Hyer 10 percent owner 3919 E 7TH AVENUE, TAMPA FL 33605
Timothy Moura officer: See Remarks C/O 2600 MCCORMICK DRIVE, SUITE 300, CLEARWATER FL 33301
Sean W Poole other: Member of Group 3919 E 7TH AVE, TAMPA FL 33605
Tara K Tira other: Member of Group 3919 E 7TH AVENUE, TAMPA FL 33605
Kathleen A Hyer other: Member of Group 3919 E 7TH AVENUE, TAMPA FL 33605
Hyer Family Partnership, Llc other: Member of Group 3919 E 7TH AVE, TAMPA FL 33605
Futura Circuits Corp. other: Member of Group 3919 E 7TH AVE, TAMPA FL 33605
Steven C. Martindale officer: Chief Financial Officer C/O HERITAGE INSURANCE HOLDINGS, INC., 2600 MCCORMICK DRIVE SUITE 300, CLEARWATER FL 33759
Timothy E. Johns officer: See Remarks C/O HEI, P.O. BOX 730, HONOLULU HI 96808