What is CSSC (Hong Kong) Shipping Co Degree of Operating Leverage?
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
CSSC (Hong Kong) Shipping Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 0.52. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for CSSC (Hong Kong) Shipping Co's Degree of Operating Leverage or its related term are showing as below:
FRA:3LL's Degree of Operating Leverage is ranked better than 59.1% of 1000
companies
in the Business Services industry
Industry Median: 0.985
vs FRA:3LL: 0.52
CSSC (Hong Kong) Shipping 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.
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CSSC (Hong Kong) Shipping Co Degree of Operating Leverage Chart
Competitive Comparison of CSSC (Hong Kong) Shipping Co's Degree of Operating Leverage
For the Rental & Leasing Services subindustry, CSSC (Hong Kong) Shipping 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.
CSSC (Hong Kong) Shipping Co's Degree of Operating Leverage Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, CSSC (Hong Kong) Shipping Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where CSSC (Hong Kong) Shipping 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.
CSSC (Hong Kong) Shipping Co (FRA:3LL) 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.
CSSC (Hong Kong) Shipping Co Degree of Operating Leverage Related Terms
Thank you for viewing the detailed overview of CSSC (Hong Kong) Shipping Co's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
CSSC (Hong Kong) Shipping Co Ltd is a ship leasing, investment, and operation company. Together with its subsidiaries, it provides integrated shipping services (including operating leases and shipbroking services) and financial services (including finance leases and loans). The group's operating segments are integrated shipping services and financing services. A majority of its revenue is generated from the Integrated shipping services segment, which includes operating lease services to the group's customers and shipbroking services to shipbuilders and charterers. The Financing services segment includes finance lease services and loan borrowing services to its customers. Geographically, its customers are located in the People's Republic of China, Asia, the United States, and Europe.
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