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Enterprise Group (XGHA:EGL) Degree of Operating Leverage : 1.64 (As of Dec. 2024)


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What is Enterprise Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Enterprise Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.64. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

XGHA:EGL's Degree of Operating Leverage is ranked worse than
61.99% of 342 companies
in the Insurance industry
Industry Median: 0.96 vs XGHA:EGL: 1.64

Enterprise Group Degree of Operating Leverage Historical Data

The historical data trend for Enterprise 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.

Enterprise Group Degree of Operating Leverage Chart

Enterprise 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 1.37 -0.36 -0.29 0.98 1.64

Enterprise Group Semi-Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.37 -0.36 -0.29 0.98 1.64

Competitive Comparison of Enterprise Group's Degree of Operating Leverage

For the Insurance - Life subindustry, Enterprise 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.


Enterprise Group's Degree of Operating Leverage Distribution in the Insurance Industry

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

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


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Enterprise Group Degree of Operating Leverage Calculation

Enterprise Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 515.063 (Dec. 2024) / 275.8 (Dec. 2023) - 1 )/( 1346.473 (Dec. 2024) / 880.079 (Dec. 2023) - 1 )
=0.8675/0.5299
=1.64***

* 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.


Enterprise Group  (XGHA:EGL) 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.


Enterprise Group Degree of Operating Leverage Related Terms

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


Enterprise Group Business Description

Traded in Other Exchanges
N/A
Address
Mayor Road, Ridge West, Accra, Advantage Place, Accra, GHA, PMB 150
Enterprise Group Ltd is engaged in the business of investments, life, non-life and health insurance underwriting, pensions funds management, provision of funeral services and real estate development and management. It also underwrites insurance risks, associated with death, disability, health, property, and liability. The company is organized into seven operating segments. These segments are Non-life insurance business; Life assurance business; Health insurance business, Pension administration; Real estate; Funeral services; and Investments. The company derives its revenues from Non Life insurance business.