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CFOO (China Foods Holdings) Degree of Operating Leverage : 1.26 (As of Mar. 2025)


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What is China Foods Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. China Foods Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.26. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

CFOO's Degree of Operating Leverage is ranked worse than
53.07% of 1839 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs CFOO: 1.26

China Foods Holdings Degree of Operating Leverage Historical Data

The historical data trend for China Foods Holdings'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.

China Foods Holdings Degree of Operating Leverage Chart

China Foods Holdings Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.03 6.44 -0.06 0.27

China Foods Holdings 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 0.28 1.59 2.71 0.27 1.26

Competitive Comparison of China Foods Holdings's Degree of Operating Leverage

For the Packaged Foods subindustry, China Foods Holdings'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.


China Foods Holdings's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, China Foods Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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China Foods Holdings Degree of Operating Leverage Calculation

China Foods Holdings'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
=( -0.483 (Mar. 2025) / -0.375 (Mar. 2024) - 1 )/( 0.209 (Mar. 2025) / 0.17 (Mar. 2024) - 1 )
=0.288/0.2294
=1.26***

* 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.


China Foods Holdings  (OTCPK:CFOO) 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.


China Foods Holdings Degree of Operating Leverage Related Terms

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China Foods Holdings Business Description

Traded in Other Exchanges
N/A
Address
26 Harbour Road, Room 2301A, Wanchai, Hong Kong, HKG
Website
China Foods Holdings Ltd is a healthcare product distributing and marketing company, developing and distributing health-related products, including supplements, across the globe with a focus on mainland China, Europe, and Australia. Its health products are designed to help enhance immunity and improve general well-being. The company has two segments, namely the Healthcare segment and the Wine segment. The healthcare segment mainly provides health consulting advisory services and healthcare and wellness products, such as Nutrition Catering, Special Health Food, Health supplements, and Skincare. The wine segment involves the sale of wine products. The majority of the company's revenue is generated from the Healthcare segment. The company derives maximum revenue from China.
Executives
Xiao Jun Kong director, 10 percent owner, officer: CEO and CFO SHUI ON CENTRE, 6-8 HARBOUR RD. UNIT 906 9/F WANCHAI K3 0000
Cheng-ni Hu director 28 MACHANG ROAD TIANHE DISTRICT GUANGZHOU F4 510000
Yang Liu director EVERBRITE CENTRE SUITE 3102 108 GLOUCESTER ROAD HONG KONG K3 00000
Yunsi Liu director, officer: President EVERBRITE CENTRE SUITE 3102 108 GLOUCESTER ROAD HONG KONG K3 00000
Hy (hk) Financial Investments Co., Ltd. 10 percent owner SHUI ON CENTRE, 6-8 HARBOUR RD. UNIT 906 9/F WANCHAI K3 0000
Sean Escobar director, officer: Vice President 10344 SOUTH SILVER WILLOW DRIVE SANDY UT 84070
Anthony B Escobar director, 10 percent owner, officer: President PO BOX 2017 SANDY UT 84091-2017
Anthony P Coletti director, officer: Chief Accounting Officer 3032 WEST HARPER PEAK COURT SOUTH JORDAN UT 84095

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