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SLQT (SelectQuote) Degree of Operating Leverage : 12.10 (As of Mar. 2025)


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What is SelectQuote Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. SelectQuote's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 12.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

SLQT's Degree of Operating Leverage is ranked worse than
92.13% of 343 companies
in the Insurance industry
Industry Median: 0.96 vs SLQT: 12.10

SelectQuote Degree of Operating Leverage Historical Data

The historical data trend for SelectQuote'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.

SelectQuote Degree of Operating Leverage Chart

SelectQuote Annual Data
Trend Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.77 0.62 15.78 -3.31 14.55

SelectQuote 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 -4.14 14.55 5.72 6.63 12.10

Competitive Comparison of SelectQuote's Degree of Operating Leverage

For the Insurance Brokers subindustry, SelectQuote'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.


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

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

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


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SelectQuote Degree of Operating Leverage Calculation

SelectQuote'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
=( 104.891 (Mar. 2025) / 30.227 (Mar. 2024) - 1 )/( 1488.701 (Mar. 2025) / 1236.346 (Mar. 2024) - 1 )
=2.4701/0.2041
=12.10***

* 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.


SelectQuote  (NYSE:SLQT) 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.


SelectQuote Degree of Operating Leverage Related Terms

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


SelectQuote Business Description

Traded in Other Exchanges
Address
6800 West 115th Street, Suite 2511, Overland Park, KS, USA, 66211
SelectQuote Inc is a Direct-to-consumer (DTC) distribution platform which facilitates consumers to shop for health, life and auto & home insurance policies online. The company generates its revenues by selling insurance products on behalf of the insurance carrier partners in the form of commission. It functions through three lines namely, SelectQuote Senior, SelectQuote Life, and SelectQuote Auto & Home.
Executives
Denise L Devine director C/O FULTON FINANCIAL CORPORATION, ONE PENN SQUARE, LANCASTER PA 17602
Sarah Taylor Anderson officer: (See Remarks) 6800 WEST 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Joshua Brandon Matthews officer: President, SelectQuote Senior 6800 WEST 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Grant W Thomas Ii director PO BOX 419248, KANSAS CITY MO 64141-6248
Grant William Thomas Iii officer: CHIEF OPERATING OFFICER 6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Robert Clay Grant officer: PRESIDENT, SELECTQUOTE SENIOR 6800 W 115TH STREET, SUITE 2511, PARK KS 66211
Timothy Robert Danker director, officer: CHIEF EXECUTIVE OFFICER 6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Hawks Donald L Iii director 6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Raymond F Weldon director 6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Matthew Scott Gunter officer: See Remarks 6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Stephanie D. Fisher officer: Chief Accounting Officer 10990 ROE AVENUE, OVERLAND PARK KS 66211
Ryan Moore Clement officer: See Remarks 6800 WEST 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Kristin Gibbar officer: Chief Human Resources Officer 6800 W. 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211
Devanny Earl H Iii director CERNER CORP, 2800 ROCKCREEK PARKWAY, KANSAS CITY MO 64117-1593
Raffaele Sadun officer: CHIEF FINANCIAL OFFICER 6800 W 115TH STREET, SUITE 2511, OVERLAND PARK KS 66211