GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » XinKong International Capital Holdings Ltd (FRA:93W) » Definitions » Degree of Operating Leverage

XinKong International Capital Holdings (FRA:93W) Degree of Operating Leverage : -1.22 (As of Dec. 2024)


View and export this data going back to 2021. Start your Free Trial

What is XinKong International Capital Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. XinKong International Capital Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -1.22. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRA:93W's Degree of Operating Leverage is ranked better than
77.85% of 614 companies
in the Asset Management industry
Industry Median: 0.71 vs FRA:93W: -1.22

XinKong International Capital Holdings Degree of Operating Leverage Historical Data

The historical data trend for XinKong International Capital 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.

XinKong International Capital Holdings Degree of Operating Leverage Chart

XinKong International Capital Holdings Annual Data
Trend Apr15 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 -0.29 -0.37 -1.95 0.62 -1.22

XinKong International Capital Holdings Semi-Annual Data
Apr15 Oct15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 -1.95 0.78 0.62 0.54 -1.22

Competitive Comparison of XinKong International Capital Holdings's Degree of Operating Leverage

For the Asset Management subindustry, XinKong International Capital 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.


XinKong International Capital Holdings's Degree of Operating Leverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, XinKong International Capital Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where XinKong International Capital Holdings's Degree of Operating Leverage falls into.


;
;

XinKong International Capital Holdings Degree of Operating Leverage Calculation

XinKong International Capital Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -0.093 (Dec. 2024) / -28.104 (Dec. 2023) - 1 )/( 23.068 (Dec. 2024) / 12.142 (Dec. 2023) - 1 )
=-0.9967/0.8999
=-1.11***

* 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.


XinKong International Capital Holdings  (FRA:93W) 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.


XinKong International Capital Holdings Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of XinKong International Capital Holdings's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


XinKong International Capital Holdings Business Description

Traded in Other Exchanges
Address
60 Gloucester Road, 15th Floor, China Huarong Tower, Wanchai, Hong Kong, HKG
XinKong International Capital Holdings Ltd Formerly Huarong International Financial Holdings Ltd is a finance company that provides brokerage services on securities, investment banking, futures, and asset management. The company operates through four segments. The securities segment which derives key revenue, is composed of the brokerage and trading of securities, futures and options contracts, and margin financing services. The corporate finance segment provides securities underwriting, sponsoring, and financial advisory services to institutional clients. The asset management and direct investment segment consists of asset management services and direct investments in equities, bonds, funds, and other financial products.

XinKong International Capital Holdings Headlines

No Headlines