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Gulf Insurance Group KSC (KUW:GINS) Degree of Operating Leverage : -22.82 (As of Mar. 2025)


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What is Gulf Insurance Group KSC Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Gulf Insurance Group KSC's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -22.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

KUW:GINS's Degree of Operating Leverage is ranked better than
95.63% of 343 companies
in the Insurance industry
Industry Median: 0.96 vs KUW:GINS: -22.82

Gulf Insurance Group KSC Degree of Operating Leverage Historical Data

The historical data trend for Gulf Insurance Group KSC'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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Gulf Insurance Group KSC Degree of Operating Leverage Chart

Gulf Insurance Group KSC 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 5.05 4.45 -0.46 -0.20 -0.38

Gulf Insurance Group KSC 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 5.38 6.29 2.64 -0.38 -22.82

Competitive Comparison of Gulf Insurance Group KSC's Degree of Operating Leverage

For the Insurance - Diversified subindustry, Gulf Insurance Group KSC'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.


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

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

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


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Gulf Insurance Group KSC Degree of Operating Leverage Calculation

Gulf Insurance Group KSC'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
=( 45.207 (Mar. 2025) / 41.585 (Mar. 2024) - 1 )/( 713.929 (Mar. 2025) / 716.664 (Mar. 2024) - 1 )
=0.0871/-0.0038
=-22.82***

* 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.


Gulf Insurance Group KSC  (KUW:GINS) 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.


Gulf Insurance Group KSC Degree of Operating Leverage Related Terms

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


Gulf Insurance Group KSC Business Description

Traded in Other Exchanges
N/A
Address
Khaled Ibn Al Waleed Street, Sharq, P.O.Box 1040, Safat, KIPCO Tower, 40th Floor, Office No. 1 and 2, Kuwait City, KWT, 13011
Gulf Insurance Group KSC is an insurance company offering solutions and covering a range of risks related to Motor, Marine & Aviation, Property & Casualty, and Life & Health Insurance, both in a conventional and Takaful (Islamic insurance based on Shariah principles) basis. Gulf Insurance operates its business in two segments, namely General risk insurance and Life and medical insurance, offering general insurance including marine and aviation, motor vehicles, property, engineering and general accidents; and savings, protection products, and other long-term contracts respectively.

Gulf Insurance Group KSC Headlines

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