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ENV (Envestnet) Degree of Operating Leverage : 25.15 (As of Sep. 2024)


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What is Envestnet Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Envestnet's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 25.15. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

ENV's Degree of Operating Leverage is not ranked
in the Software industry.
Industry Median: 0.8 vs ENV: 25.15

Envestnet Degree of Operating Leverage Historical Data

The historical data trend for Envestnet'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.

Envestnet Degree of Operating Leverage Chart

Envestnet Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -24.18 -20.04 2.63 -61.13 494.45

Envestnet Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -2.31 494.45 40.44 30.01 25.15

Competitive Comparison of Envestnet's Degree of Operating Leverage

For the Software - Application subindustry, Envestnet'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.


Envestnet's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Envestnet's Degree of Operating Leverage distribution charts can be found below:

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


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Envestnet Degree of Operating Leverage Calculation

Envestnet's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -166.433 (Sep. 2024) / -49.122 (Sep. 2023) - 1 )/( 1336.804 (Sep. 2024) / 1220.862 (Sep. 2023) - 1 )
=2.3882/0.095
=25.15***

* 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.


Envestnet  (NYSE:ENV) 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.


Envestnet Degree of Operating Leverage Related Terms

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


Envestnet Business Description

Industry
Traded in Other Exchanges
N/A
Address
1000 Chesterbrook Boulevard, Suite 250, Berwyn, Pennsylvania, IL, USA, 19312
Envestnet provides wealth-management technology and solutions to registered investment advisors, banks, broker/dealers, and other firms. Its Tamarac platform provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software to high-end RIAs. Envestnet's portfolio management consultants provide research services and consulting services to assist advisors, including vetted third-party managed account products. In November 2015, Envestnet acquired Yodlee, a provider of data aggregation, which is reported in the firm's data and analytics segment. In 2019, Envestnet acquired MoneyGuidePro to bolster its financial planning tools.
Executives
Matthew Majoros officer: Principal Accounting Officer 35 E. WACKER DRIVE, SUITE 2400, CHICAGO IL 60601
Lauren Taylor Wolfe director 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
Barry D. Cooper officer: SVP, Head of Accounting Mgmt. 35 E. WACKER DRIVE, STE 2400, CHICAGO IL 60601
Barbara Turner director 5320 STONY RUN COURT, LIBERTY TOWNSHIP OH 45011
William Crager officer: President 489 FIFTH AVENUE, 26TH FLOOR, NEW YORK NY 10017
Shelly O'brien officer: General Counsel 35 E. WACKER DRIVE, SUITE 2400, CHICAGO IL 60601
Wendy E Lane director
Impactive Capital Llc director 152 WEST 57TH, 17TH FLOOR, NEW YORK CITY NY 10019
Impactive Capital Lp director 450 WEST 14 STREET, 12TH FLOOR, NEW YORK CITY NY 10014
Christian Asmar director 152 WEST 57TH STREET, 17TH FLOOR, NEW YORK CITY NY 10019
Stuart Depina officer: President* 11755 WILSHIRE BLVD., 20TH FLOOR, LOS ANGELES CA 90025
Anil Arora director C/O YODLEE, INC., 3600 BRIDGE PARKWAY, 2ND FLOOR, REDWOOD CITY CA 94065
Brandon Thomas officer: Chief Investment Officer 35 E. WACKER DRIVE, SUITE 2400, CHICAGO IL 60601
Joshua Mayer officer: Chief Operating Officer 35 EAST WACKER DRIVE, SUITE 2400, CHICAGO IL 60601
Scott D Grinis officer: Chief Technology Officer 150 MATHILDA PLACE, SUITE 306, SUNNYVALE CA 94086