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TRUP (Trupanion) Degree of Operating Leverage : -12.25 (As of Mar. 2025)


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What is Trupanion Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Trupanion's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -12.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TRUP's Degree of Operating Leverage is ranked better than
93.55% of 341 companies
in the Insurance industry
Industry Median: 0.96 vs TRUP: -12.25

Trupanion Degree of Operating Leverage Historical Data

The historical data trend for Trupanion'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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Trupanion Degree of Operating Leverage Chart

Trupanion 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 45.30 6.53 5.35 -0.78 -7.18

Trupanion 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 -3.51 -4.66 -5.90 -7.18 -12.25

Competitive Comparison of Trupanion's Degree of Operating Leverage

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


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

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

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


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Trupanion Degree of Operating Leverage Calculation

Trupanion'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
=( 9.921 (Mar. 2025) / -13.668 (Mar. 2024) - 1 )/( 1321.538 (Mar. 2025) / 1158.397 (Mar. 2024) - 1 )
=-1.7259/0.1408
=-12.25***

* 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.


Trupanion  (NAS:TRUP) 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.


Trupanion Degree of Operating Leverage Related Terms

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


Trupanion Business Description

Traded in Other Exchanges
Address
6100 4th Avenue South, Suite 200, Seattle, WA, USA, 98108
Trupanion Inc is a specialty insurance products provider in the United States. Its core business is the sale of insurance products tailor-made for pets, especially cats and dogs. It operates in two business segments: The subscription business segment generates revenue primarily from subscription fees related to the Company's direct-to-consumer products and Other business segment is comprised of revenue from other product offerings that generally have a business-to-business relationship and a different margin profile than subscription business segment, including revenue from writing policies on behalf of third parties and revenue from other products and software solutions.
Executives
Fawwad Qureshi officer: Chief Financial Officer 6100 4TH AVENUE S, SEATTLE WA 98108
Margaret Tooth officer: Co-President 907 NW BALLARD WAY, SEATTLE WA 98107
Brenna Mcgibney officer: Chief Administration Officer 309-1277 LYNN VALLEY ROAD, SUITE 400, NORTH VANCOUVER A1 V7J 0A2
John R Gallagher officer: General Manager 6100 4TH AVENUE SOUTH, SUITE 400, SEATTLE WA 98108
Emily Dreyer officer: SVP, Channel Growth 6100 4TH AVENUE SOUTH, SUITE 400, SEATTLE WA 98108
Murray B Low director
Steve Weinrauch officer: EVP, North Am & Vet Strategy 6100 4TH AVENUE SOUTH, SUITE 400, SEATTLE WA 98108
Travis Worra officer: General Manager 6100 4TH AVENUE, SUITE 400, SEATTLE WA 98108
Melissa Joy Hewitt officer: General Manager 6100 4TH AVENUE SOUTH, SUITE 400, SEATTLE WA 98108
Darryl Rawlings director, officer: Chief Executive Officer 6100 4TH AVENUE SOUTH, SUITE 200, SEATTLE WA 98108
Michael Doak director 907 NW BALLARD WAY, SEATTLE WA 98107
Wei Li officer: Interim CFO 6100 4TH AVENUE SOUTH, SUITE 400, SEATTLE WA 98108
Max Broden director 1932 WYNNTON RD, COLUMBUS GA 31999
Paulette R. Dodson director PETSMART, INC, 19601 N 27TH AVE, PHOENIX AZ 85027
Elizabeth Mclaughlin director C/O THE ORIGINAL BARK COMPANY, 221 CANAL ST., FL 6, NEW YORK NY 10013