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CNET (ZW Data Action Technologies) Degree of Operating Leverage : 0.43 (As of Mar. 2025)


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What is ZW Data Action Technologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ZW Data Action Technologies's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.43. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for ZW Data Action Technologies's Degree of Operating Leverage or its related term are showing as below:

CNET's Degree of Operating Leverage is ranked better than
58.76% of 987 companies
in the Media - Diversified industry
Industry Median: 1.18 vs CNET: 0.43

ZW Data Action Technologies Degree of Operating Leverage Historical Data

The historical data trend for ZW Data Action Technologies'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.

ZW Data Action Technologies Degree of Operating Leverage Chart

ZW Data Action Technologies 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 -11.24 5.96 0.76 -2.83 0.43

ZW Data Action Technologies 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 -4.28 4.49 1.26 0.43 0.43

Competitive Comparison of ZW Data Action Technologies's Degree of Operating Leverage

For the Advertising Agencies subindustry, ZW Data Action Technologies'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.


ZW Data Action Technologies's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, ZW Data Action Technologies's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where ZW Data Action Technologies's Degree of Operating Leverage falls into.


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ZW Data Action Technologies Degree of Operating Leverage Calculation

ZW Data Action Technologies'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
=( -3.414 (Mar. 2025) / -4.391 (Mar. 2024) - 1 )/( 13.56 (Mar. 2025) / 27.8 (Mar. 2024) - 1 )
=-0.2225/-0.5122
=0.43***

* 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.


ZW Data Action Technologies  (NAS:CNET) 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.


ZW Data Action Technologies Degree of Operating Leverage Related Terms

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


ZW Data Action Technologies Business Description

Traded in Other Exchanges
Address
29 Des Voeux Road Central, 8th Floor, Beijing, HKG
ZW Data Action Technologies Inc is engaged in providing Internet advertising, precision marketing, e-commerce online to offline (O2O) advertising and marketing services as well as related data and technical services to small and medium enterprises in the PRC. It offers a variety channel of advertising and marketing services through its system, including distribution of the right to use search engine marketing services, provision of online advertising placements on its web portals, provision of e-commerce O2O advertising and marketing services, and provision of other related value-added data and technical services to maximize market exposure and effectiveness for clients.
Executives
Changhua Qiu director NO.3 MIN ZHUANG RD. BUILDING 6, YU QUAN HUI GU TUSPARK, HAIDIAN DISTRICT, BEIJING F4 100195
Handong Cheng director, 10 percent owner, officer: See Remarks C/O CHINA NET ONLINE MEDIA GROUP LTD.NO3, MIN ZHUANG RD. YU QUAN HUI GU TUSPARK, HAIDIAN DISTRICT F4 100195
Xuanfu Liu 10 percent owner, officer: Chief Operating Officer C/OCHINA NET ONLINE MEDIA GROUP LTD. NO3, MIN ZHUANG RD. YU QUAN HUI GU TUSPARK, HAIDIAN DISTRICT F4 100195
Rise King Investment Ltd 10 percent owner C/O CHINANET ONLINE MEDIA GROUP LTD.NO.3, MIN ZHUANG YU QUAN HUI GU TUSPARK, HAIDIAN F4 100195
Zhige Zhang director, officer: Chief Financial Officer C/O CHINA NET ONLINE MEDIA GROUP LTD.NO3, MIN ZHUANG RD. YU QUAN HUI GU TUSPARK, HAIDIAN DISTRICT F4 100195
Kai Chu officer: Chief Operating Officer C/O CHINANET ONLINE HOLDINGS INC.,NO.3, MIN ZHUANG RD, BLDG 6 YU QUAN HUI GU TUS, HAIDIAN DISTRICT, BEIJING F4 100195
Douglas Charles Maclellan director 11825 MAJOR STREET, CULVER CITY CA 90230
Mototaka Watanabe director 7-29-13 KAMIKIZAKI, URAWA-KU, SAITAMA-SHI, SAITAMA-KEN M0 000000
Zhiqing Chen director 18/F UNIVERSAL MANSION, 168 YU YUAN ROAD, SHANGHAI F4 200040
Li Sun 10 percent owner C/O CHINANET ONLINE MEDIA GROUP LTD.NO.3, MIN ZHUANG RD. YU QUAN HUI GU TUSPARK, HAIDIAN DISTRICT, BEIJING NY 100195
Kotoi Hirofumi director C/O CHINANET ONLINE MEDIA GROUP LTD.NO.3, MIN ZHUANG RD. YU QUAN HUI GU TUSPARK, HAIDIAN DISTRICT, BEIJING F4 100195
Hai Cui officer: VP, Head of Bank Kiosk Unit C/O CHINANET ONLINE MEDIA GROUP LTD.NO.3, MIN ZHUANG RD. YU QUAN HUI GU TUSPARK, HAIDIAN DISTRICT, BEIJING F4 100195
Li Wang officer: VP, Head of Human Resources C/O CHINANET ONLINE MEDIA GROUP LTD.NO.3, MIN ZHUANG YU QUAN HUI GU TUSPARK, BEIJING F4 100195
Hu Wen officer: VP, Head of TV Operations C/O CHINANET ONLINE MEDIA GROUP LTD.NO.3, MIN ZHUANG YU QUAN HUI GU TUSPARK, BEIJING F4 100195
Xinwei Liu officer: VGM, Head of 28.com C/O CHINANET ONLINE MEDIA GROUP LTD.NO.3, MIN ZHUANG YU QUAN HUI GU TUSPARK, BEIJING F4 100195

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