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Intact Financial (TSX:IFC) Degree of Operating Leverage : 3.11 (As of Mar. 2025)


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What is Intact Financial Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Intact Financial's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

TSX:IFC's Degree of Operating Leverage is ranked worse than
74.62% of 331 companies
in the Insurance industry
Industry Median: 0.98 vs TSX:IFC: 3.11

Intact Financial Degree of Operating Leverage Historical Data

The historical data trend for Intact Financial'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.

Intact Financial Degree of Operating Leverage Chart

Intact Financial 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 5.74 2.06 1.89 -3.21 4.69

Intact Financial 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 -2.35 3.17 3.78 4.69 3.11

Competitive Comparison of Intact Financial's Degree of Operating Leverage

For the Insurance - Property & Casualty subindustry, Intact Financial'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.


Intact Financial's Degree of Operating Leverage Distribution in the Insurance Industry

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

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


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Intact Financial Degree of Operating Leverage Calculation

Intact Financial'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
=( 3117 (Mar. 2025) / 2312 (Mar. 2024) - 1 )/( 24294 (Mar. 2025) / 21846 (Mar. 2024) - 1 )
=0.3482/0.1121
=3.11***

* 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.


Intact Financial  (TSX:IFC) 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.


Intact Financial Degree of Operating Leverage Related Terms

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


Intact Financial Business Description

Address
700 University Avenue, Suite 1500-A, Toronto, ON, CAN, M5G 0A1
Intact Financial Corp is a property and casualty insurance company that provides written premiums in Canada. The company distributes insurance under the Intact Insurance brand through a network of brokers and a wholly-owned subsidiary, BrokerLink, and directly to consumers through Belairdirect. The majority of the company's direct premiums are written in the personal automotive space. Intact directly manages its investments through its subsidiary Intact Investment Management. The vast majority of these invested assets are fixed-income securities. Its asset mix is designed to generate interest and dividend income. The company has three reportable segments Canada, UK & International, and U.S.
Executives
Benoit Morissette Senior Officer
Darren Christopher Godfrey Senior Officer
Frédéric Cotnoir Senior Officer
Timothy Michael Miller Senior Officer
Charles Brindamour Senior Officer
Marie-lucie Paradis Senior Officer
Louis Gagnon Senior Officer
Louis Marcotte Senior Officer
Stephani Kingsmill Director
Werner Muehlemann Senior Officer
Michael Katchen Director
Lucie Martel Senior Officer
Anne Fortin Senior Officer
Frederick Glenn Ian Singer Director
Mark Alan Tullis Senior Officer

Intact Financial Headlines

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