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WHG (Westwood Holdings Group) Degree of Operating Leverage : 11.36 (As of Mar. 2025)


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What is Westwood Holdings Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Westwood Holdings Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 11.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

WHG's Degree of Operating Leverage is ranked worse than
92.82% of 613 companies
in the Asset Management industry
Industry Median: 0.7 vs WHG: 11.36

Westwood Holdings Group Degree of Operating Leverage Historical Data

The historical data trend for Westwood Holdings Group'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.

Westwood Holdings Group Degree of Operating Leverage Chart

Westwood Holdings Group 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 5.27 -47.98 10.48 1.80 11.95

Westwood Holdings Group 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 3.61 27.17 15.26 11.95 11.36

Competitive Comparison of Westwood Holdings Group's Degree of Operating Leverage

For the Asset Management subindustry, Westwood Holdings Group'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.


Westwood Holdings Group's Degree of Operating Leverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Westwood Holdings Group's Degree of Operating Leverage distribution charts can be found below:

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


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Westwood Holdings Group Degree of Operating Leverage Calculation

Westwood Holdings Group'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
=( 5.651 (Mar. 2025) / 3.343 (Mar. 2024) - 1 )/( 95.241 (Mar. 2025) / 89.786 (Mar. 2024) - 1 )
=0.6904/0.0608
=11.36***

* 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.


Westwood Holdings Group  (NYSE:WHG) 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.


Westwood Holdings Group Degree of Operating Leverage Related Terms

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


Westwood Holdings Group Business Description

Traded in Other Exchanges
N/A
Address
200 Crescent Court, Suite 1200, Dallas, TX, USA, 75201
Westwood Holdings Group Inc manages investment assets and provides services for clients through subsidiaries. It operates its business through the Advisory and Trust segments. Its advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals and the Westwood Funds, as well as investment sub-advisory services to mutual funds and its trust segment. The Trust segment offers trust and custodial services to its clients and its advisory segment sponsors common trust funds to institutions and high net-worth individuals. It generates maximum revenue from the Advisory segment. Geographically, it derives a majority of its revenue from the United States.
Executives
Matthew Lockridge officer: Head, U.S. Value Inv. 200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
John Porter Montgomery officer: COO 200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Leah Bennett officer: President-Westwood Wealth Mgmt 200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Ehinger John Anthony Jr officer: Head of Legal, CCO 279 BENSON LAN, COPPELL TX 75019
Jcp Investment Management, Llc 10 percent owner 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Adrian Helfert officer: CIO, Multi-Asset Inv. 200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Richard M Frank director 4441 W AIRPORT FREEWAY, IRVING TX 75062
Brian O Casey director, officer: President & CEO 200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Raymond E Wooldridge director 200 CRESCENT COURT, STE 1200, DALLAS TX 75201
Fabian Gomez officer: Chief Operating Officer 200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Randy A Bowman director 200 CRESCENT COURT, SUITE 1200, DALLAS TX 75201
Jcp Investment Holdings, Llc 10 percent owner, other: See Footnote 1 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partners, Lp 10 percent owner, other: See Footnote 1 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partnership, Lp 10 percent owner, other: See Footnote 1 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
James C Pappas 10 percent owner 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027