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EGRNF (China Evergrande Group) Degree of Operating Leverage : 0.00 (As of Jun. 2023)


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What is China Evergrande Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. China Evergrande Group's Degree of Operating Leverage for the quarter that ended in Jun. 2023 was 0.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

EGRNF's Degree of Operating Leverage is not ranked *
in the Real Estate industry.
Industry Median: 0.92
* Ranked among companies with meaningful Degree of Operating Leverage only.

China Evergrande Group Degree of Operating Leverage Historical Data

The historical data trend for China Evergrande 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.

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China Evergrande Group Degree of Operating Leverage Chart

China Evergrande Group Annual Data
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China Evergrande Group Semi-Annual Data
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Competitive Comparison of China Evergrande Group's Degree of Operating Leverage

For the Real Estate - Development subindustry, China Evergrande 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.


China Evergrande Group's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, China Evergrande Group's Degree of Operating Leverage distribution charts can be found below:

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


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China Evergrande Group Degree of Operating Leverage Calculation

China Evergrande Group's Degree of Operating Leverage for the quarter that ended in Jun. 2023 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -7241.038 (Jun. 2023) / -113334.973 (Jun. 2022) - 1 )/( 38092.802 (Jun. 2023) / 17624.872 (Jun. 2022) - 1 )
=-0.9361/1.1613
=-0.81***

* 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 Evergrande Group  (OTCPK:EGRNF) 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 Evergrande Group Degree of Operating Leverage Related Terms

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China Evergrande Group Business Description

Traded in Other Exchanges
N/A
Address
Number. 78 Huangpu Avenue West, Tianhe District, Guangdong Province, Guangzhou, CHN, 510620
China Evergrande Group is a large real estate developer. In 2019, it was ranked in third place by sales value among developers in China. It has projects in more than 200 cities across China and property development accounts for 90% of earnings. The firm also has interests in banking, insurance, tourism, and healthcare. Evergrande was listed in Hong Kong in late 2009. The company is in the process of spinning off its real estate business into a Shenzhen-listed entity. Free float is 25%, with the company's founder Hui Ka Yan holding the remaining share.