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Maoyan Entertainment (FRA:9ME) Degree of Operating Leverage : 2.37 (As of Jun. 2024)


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What is Maoyan Entertainment Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Maoyan Entertainment's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 2.37. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Maoyan Entertainment's Degree of Operating Leverage or its related term are showing as below:

FRA:9ME's Degree of Operating Leverage is ranked worse than
62.9% of 558 companies
in the Interactive Media industry
Industry Median: 0.93 vs FRA:9ME: 2.37

Maoyan Entertainment Degree of Operating Leverage Historical Data

The historical data trend for Maoyan Entertainment'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.

Maoyan Entertainment Degree of Operating Leverage Chart

Maoyan Entertainment Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -65.04 2.76 -1.33 1.93 4.64

Maoyan Entertainment Semi-Annual Data
Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 4.05 1.93 8.97 4.64 2.37

Competitive Comparison of Maoyan Entertainment's Degree of Operating Leverage

For the Internet Content & Information subindustry, Maoyan Entertainment'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.


Maoyan Entertainment's Degree of Operating Leverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Maoyan Entertainment's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Maoyan Entertainment's Degree of Operating Leverage falls into.



Maoyan Entertainment Degree of Operating Leverage Calculation

Maoyan Entertainment's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 137.22 (Jun. 2024) / 70.071 (Jun. 2023) - 1 )/( 606.832 (Jun. 2024) / 435.893 (Jun. 2023) - 1 )
=0.9583/0.3922
=2.44***

* 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.


Maoyan Entertainment  (FRA:9ME) 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.


Maoyan Entertainment Degree of Operating Leverage Related Terms

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Maoyan Entertainment Business Description

Traded in Other Exchanges
Address
No. 11 Hepingli East Street, No. 3 Building, Yonghe Hangxing Garden, Dongcheng District, Beijing, CHN
Maoyan Entertainment is a China-based company that mainly operates an Internet-empowered entertainment service platform. The company operates in three segments. The Online Entertainment Ticketing Services segment offers online ticketing services for comprehensive entertainment formats, such as movies and entertainment events. The Entertainment Content Services segment operates an integrated platform to provide entertainment content services, ranging from distribution, and promotion to production, for various entertainment formats including movies, TV series, variety shows, and entertainment events. The Advertising Services and Others segment serves advertisers in both the entertainment industry and other industries including automobile, electronics, and consumer products.

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