GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Tiptree Inc (NAS:TIPT) » Definitions » Degree of Operating Leverage

TIPT (Tiptree) Degree of Operating Leverage : 2.16 (As of Mar. 2025)


View and export this data going back to 2007. Start your Free Trial

What is Tiptree Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Tiptree's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.16. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TIPT's Degree of Operating Leverage is ranked worse than
70.09% of 341 companies
in the Insurance industry
Industry Median: 0.96 vs TIPT: 2.16

Tiptree Degree of Operating Leverage Historical Data

The historical data trend for Tiptree'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.

Tiptree Degree of Operating Leverage Chart

Tiptree 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 -18.81 -36.21 -1.11 1.75 2.68

Tiptree 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 2.32 1.68 2.38 2.68 2.16

Competitive Comparison of Tiptree's Degree of Operating Leverage

For the Insurance - Specialty subindustry, Tiptree'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.


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

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

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


;
;

Tiptree Degree of Operating Leverage Calculation

Tiptree'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
=( 179.288 (Mar. 2025) / 134.096 (Mar. 2024) - 1 )/( 2041.332 (Mar. 2025) / 1765.643 (Mar. 2024) - 1 )
=0.337/0.1561
=2.16***

* 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.


Tiptree  (NAS:TIPT) 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.


Tiptree Degree of Operating Leverage Related Terms

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


Tiptree Business Description

Industry
Traded in Other Exchanges
N/A
Address
660 Steamboat Road, 2nd Floor, Greenwich, CT, USA, 06830
Tiptree Inc is a United States-based company that provides specialty insurance products and related services. It has two reportable segments: Insurance and Mortgage. The company generates the majority of its revenue from the Insurance Segment, which is engaged in designing, marketing, and underwriting specialty property and casualty insurance products incorporating value-added coverages and services for select target markets or niches. The Mortgage segment originates loans for sale to institutional investors, including GSEs and FHA/VA, and services loans on behalf of Fannie Mae, Freddie Mac, and Ginnie Mae.
Executives
Neil Charles Rifkind officer: General Counsel and Secretary C/O TIPTREE INC., 660 STEAMBOAT ROAD, 2ND FL, GREENWICH CT 06830
Jonathan Ilany director PO BOX 180, WINCHESTER CENTER CT 06094
Scott T. Mckinney officer: Chief Financial Officer 660 STEAMBOAT ROAD, 2ND FLOOR, GREENWICH CT 06830
Sandra Bell officer: Chief Financial Officer C/O TIPTREE INC., 660 STEAMBOAT ROAD, 2ND FL, GREENWICH CT 06830
Randy Maultsby officer: President C/O TIPTREE INC., 660 STEAMBOAT ROAD, 2ND FL, GREENWICH CT 06830
Arif Inayatullah 10 percent owner C/O TIPTREE INC., 660 STEAMBOAT ROAD, 2ND FL, GREENWICH CT 06830
Paul M Friedman director 11 DEERFIELD LANE, SCARSDALE NY 10583
Dominique Mielle director C/O ANWORTH MORTGAGE ASSET CORPORATION, 1299 OCEAN AVENUE, SECOND FLOOR, SANTA MONICA CA 90401
Michael Gene Barnes director, officer: Vice Chairman of the Board TRICADIA CAPITAL, 299 PARK AVENUE, 13TH FLOOR, NEW YORK NY 10171
Nomura Securities Co Ltd 10 percent owner 13-1, NIHONBASHI 1-CHOME, CHUO-KU, TOKYO M0 103-8011
Prosight Specialty Insurance Group, Inc. 10 percent owner 412 MT. KEMBLE AVENUE, SUITE 300C, MORRISTOWN NJ 07960
New York Marine & General Insurance Co 10 percent owner 412 MT. KEMBLE AVENUE, SUITE 300C, MORRISTOWN NJ 07960
Prosight Global, Inc. 10 percent owner 412 MT. KEMBLE AVENUE, SUITE 300C, MORRISTOWN NJ 07960
Gotham Insurance Co 10 percent owner 412 MT. KEMBLE AVENUE, SUITE 300C, MORRISTOWN NJ 07960
Southwest Marine & General Insurance Co 10 percent owner 412 MT. KEMBLE AVENUE, SUITE 300C, MORRISTOWN NJ 07960