GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Loews Corp (NYSE:L) » Definitions » Degree of Operating Leverage

Loews (L) Degree of Operating Leverage : -1.33 (As of Mar. 2025)


View and export this data going back to 1995. Start your Free Trial

What is Loews Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Loews's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -1.33. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

L's Degree of Operating Leverage is ranked better than
77.04% of 331 companies
in the Insurance industry
Industry Median: 0.98 vs L: -1.33

Loews Degree of Operating Leverage Historical Data

The historical data trend for Loews'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.

Loews Degree of Operating Leverage Chart

Loews 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 19.50 -848.01 -17.96 5.09 -0.24

Loews 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 5.04 3.44 2.06 -0.24 -1.33

Competitive Comparison of Loews's Degree of Operating Leverage

For the Insurance - Property & Casualty subindustry, Loews'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.


Loews's Degree of Operating Leverage Distribution in the Insurance Industry

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

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


;
;

Loews Degree of Operating Leverage Calculation

Loews'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
=( 2202 (Mar. 2025) / 2490 (Mar. 2024) - 1 )/( 17500 (Mar. 2025) / 16099 (Mar. 2024) - 1 )
=-0.1157/0.087
=-1.33***

* 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.


Loews  (NYSE:L) 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.


Loews Degree of Operating Leverage Related Terms

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


Loews Business Description

Industry
Traded in Other Exchanges
Address
9 West 57th Street, New York, NY, USA, 10019-2714
Loews Corp is a holding company along with its subsidiary engaged in commercial property and casualty insurance, transportation and storage of natural gas and natural gas liquids, operation of a chain of hotels, and also in the manufacture of rigid plastic packaging solutions. It has four reportable segments comprised of three individual consolidated operating subsidiaries, CNA Financial Corporation, Boardwalk Pipeline Partners, LP and Loews Hotels Holding Corporation; and the Corporate segment.
Executives
Jonathan M Tisch director, officer: Co-Ch. of Bd/Off. of the Pres. 667 MADISON AVENUE, NEW YORK NY 10021-8087
Ann E Berman director 255 STATE STREET, BOSTON MA 02109
Anthony Welters director
Richard Waldo Scott officer: SVP & Chief Investment Officer 667 MADISON AVENUE, NEW YORK NY 10065
Marc A Alpert officer: Sr. VP, Gen. Coun. & Secy. 667 MADISON AVENUE, NEW YORK NY 10065
Andrew H Tisch director 667 MADISON AVE, NEW YORK NY 10021-8087
Paul J Fribourg director 667 MADISON AVE, NEW YORK NY 10021
Charles M Diker director ONE NEW YORK PLAZA, NEW YORK NY 10004
Walter L Harris director TANENBAUM HARBER CO, 320 W 57TH STREET, NEW YORK NY 10019
Kenneth I Siegel officer: Senior Vice President 667 MADISON AVENUE, NEW YORK NY 10065
Jonathan C Locker director C/O LOEWS CORPORATION, 9 WEST 57TH STREET, NEW YORK NY 10019
Mark S Schwartz officer: V.P., C.A.O. and Treasurer C/O LOEWS CORPORATION, 667 MADISON AVENUE, NEW YORK NY 10065-8087
Joseph L Bower director 667 MADISON AVE, NEW YORK NY 10021
Charles D Davidson director QUANTUM ENERGY PARTNERS, 1401 MCKINNEY STREET, SUITE 2700, HOUSTON TX 77010
Benjamin J Tisch officer: Sr. VP, Corp Dev and Strategy 667 MADISON AVE, NEW YORK NY 10065