What is The People's Insurance Co (Group) of China Degree of Operating Leverage?
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
The People's Insurance Co (Group) of China's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 8.90. The higher Degree of Operating Leverage, the higher operating risk the company will take.
* 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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The People's Insurance Co (Group) of China Degree of Operating Leverage Chart
The People's Insurance Co (Group) of China Annual Data
Competitive Comparison of The People's Insurance Co (Group) of China's Degree of Operating Leverage
For the Insurance - Property & Casualty subindustry, The People's Insurance Co (Group) of China'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.
The People's Insurance Co (Group) of China's Degree of Operating Leverage Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, The People's Insurance Co (Group) of China's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where The People's Insurance Co (Group) of China'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.
The People's Insurance Co (Group) of China (FRA:PIR) 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.
The People's Insurance Co (Group) of China Degree of Operating Leverage Related Terms
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The People's Insurance Co (Group) of China Business Description
With headquarters in Beijing, PICC Group is the largest state-owned insurance group, holding a 69% stake in PICC P&C, an 80% stake in PICC Life, and a 69% stake in PICC Health Insurance. Its P&C subsidiary is the largest nonlife insurer with about one third of market share in China. Life and health insurance subsidiaries hold about 2.9% and 1.3% share, respectively. The Ministry of Finance is the largest shareholder, with 61% share. China's Social Security Fund is the group's second-largest shareholder holding nearly 13% share.
The People's Insurance Co (Group) of China Headlines
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