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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Cosco Shipping Development Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.93. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Cosco Shipping Development Co's Degree of Operating Leverage or its related term are showing as below:
CITAF's Degree of Operating Leverage is ranked worse than 58.11% of 339
companies
in the Aerospace & Defense industry
Industry Median: 1.26
vs CITAF: 1.93
Cosco Shipping Development Co (OTCPK:CITAF) 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.
Cosco Shipping Development Co Degree of Operating Leverage Related Terms
Cosco Shipping Development Co Degree of Operating Leverage Historical Data
* 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.
Cosco Shipping Development Co Degree of Operating Leverage Chart
CITAF vs SPCX, GE, RTX: Degree of Operating Leverage Comparison
For the Aerospace & Defense subindustry, Cosco Shipping Development Co'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.
Cosco Shipping Development Co Degree of Operating Leverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Cosco Shipping Development Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Cosco Shipping Development Co's Degree of Operating Leverage falls into.
* 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.
What does a Degree of Operating Leverage of 1.93 mean?
Cosco Shipping Development Co (CITAF) has a Degree of Operating Leverage of 1.93 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Cosco Shipping Development Co and its competitors. According to the industry distribution chart, Cosco Shipping Development Co ranks #197 out of 339 companies in the Aerospace & Defense industry, placing it in the top 58.1%.
Is Cosco Shipping Development Co's Degree of Operating Leverage too high?
Cosco Shipping Development Co's current Degree of Operating Leverage is 1.93. The Aerospace & Defense industry median Degree of Operating Leverage is 1.26. Cosco Shipping Development Co's value of 1.93 is 53.2% above this industry median. Based on the distribution chart, Cosco Shipping Development Co ranks #197 out of 339 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Cosco Shipping Development Co has a GF Score™ of 38/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Cosco Shipping Development Co's Degree of Operating Leverage compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Cosco Shipping Development Co ranks #197 out of 339 companies for Degree of Operating Leverage. This places Cosco Shipping Development Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.26. Cosco Shipping Development Co's value of 1.93 is 53.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Aerospace & Defense company?
The median Degree of Operating Leverage among Aerospace & Defense companies is 1.26, based on 339 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cosco Shipping Development Co's current Degree of Operating Leverage of 1.93 is 53.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Cosco Shipping Development Co and its competitors. For the Aerospace & Defense industry, the median Degree of Operating Leverage is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cosco Shipping Development Co's current Degree of Operating Leverage is 1.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cosco Shipping Development Co stock overvalued right now?
Based on GuruFocus' analysis, Cosco Shipping Development Co (CITAF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.17, compared to a current price of $0.12 — trading 32.1% below its estimated fair value. The current Degree of Operating Leverage is 1.93 and 53.2% above the Aerospace & Defense industry median of 1.26. Cosco Shipping Development Co's overall GF Score™ is 38/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Cosco Shipping Development Co (CITAF), the current Degree of Operating Leverage is 1.93 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cosco Shipping Development Co (CITAF) Overvalued in 2026?
Based on GuruFocus' analysis, Cosco Shipping Development Co stock appears to be undervalued.
The current stock price of $0.12 is trading 32.1% below its estimated GF Value™ of $0.17.
GuruFocus considers Cosco Shipping Development Co to be Possible Value Trap.
Key valuation signals for CITAF:
Degree of Operating Leverage: 1.93
GF Value™: $0.17 vs. price of $0.12 (32.1% below fair value)
Industry Position: 53.2% above the Aerospace & Defense median (#197 of 339)
No single metric tells the full story. See the CITAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cosco Shipping Development Co Ltd is a China-based company operating and managing container shipping. Its services include container transportation, vessel chartering, cargo canvassing and booking, customs clearance, depot services, container construction, sales, purchase, and vessel management. The operating business segments are the Shipping leasing and container leasing business segment, which derives maximum revenue, renders vessel chartering, container leasing, and finance lease services; the Container manufacturing segment, which manufactures and sells containers; the Investment management business segment, which focuses on equity or debt investment and insurance brokerage services. geographically , the company derives maximum revenue from Chinese Mainland.
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