GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Chinese People Holdings Co Ltd (FRA:KEH) » Definitions » Degree of Operating Leverage

Chinese People Holdings Co (FRA:KEH) Degree of Operating Leverage : -58.91 (As of Dec. 2024)


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

What is Chinese People Holdings Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Chinese People Holdings Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -58.91. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Chinese People Holdings Co's Degree of Operating Leverage or its related term are showing as below:

FRA:KEH's Degree of Operating Leverage is ranked better than
97.54% of 487 companies
in the Utilities - Regulated industry
Industry Median: 0.86 vs FRA:KEH: -58.91

Chinese People Holdings Co Degree of Operating Leverage Historical Data

The historical data trend for Chinese People Holdings Co'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.

Chinese People Holdings Co Degree of Operating Leverage Chart

Chinese People Holdings Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.42 -0.46 14.73 24.56 -58.91

Chinese People Holdings Co Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 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 14.73 -2.55 24.56 49.52 -58.91

Competitive Comparison of Chinese People Holdings Co's Degree of Operating Leverage

For the Utilities - Regulated Gas subindustry, Chinese People Holdings 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.


Chinese People Holdings Co's Degree of Operating Leverage Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Chinese People Holdings Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Chinese People Holdings Co's Degree of Operating Leverage falls into.


;
;

Chinese People Holdings Co Degree of Operating Leverage Calculation

Chinese People Holdings Co'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
=( 9.718 (Dec. 2024) / -25.405 (Dec. 2023) - 1 )/( 345.587 (Dec. 2024) / 322.806 (Dec. 2023) - 1 )
=-1.3825/0.0706
=-19.59***

* 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.


Chinese People Holdings Co  (FRA:KEH) 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.


Chinese People Holdings Co Degree of Operating Leverage Related Terms

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


Chinese People Holdings Co Business Description

Traded in Other Exchanges
Address
No. 2 Jingyuan North Street, No. 36 BDA International Business Park, Economic Technological Development Area, Beijing, CHN
Chinese People Holdings Co Ltd is an investment holding company. The segments of the company are Piped gas transmission & distribution, which is into sales of piped gas and construction of gas pipeline networks under gas connection contracts; Cylinder gas supply segment includes sales and distribution of gas, Gas distribution segment is into sales of natural gas to industrial and commercial customers; and Food ingredients supply and FMGC segment which is into wholesales and retail of merchandise through supermarkets and convenience stores. Geographically, the company derives revenue from the PRC.

Chinese People Holdings Co Headlines

No Headlines