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Pacific Textiles Holdings (FRA:WHE) Degree of Operating Leverage : -0.64 (As of Sep. 2024)


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What is Pacific Textiles Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pacific Textiles Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -0.64. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

FRA:WHE's Degree of Operating Leverage is ranked better than
68.94% of 1011 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.08 vs FRA:WHE: -0.64

Pacific Textiles Holdings Degree of Operating Leverage Historical Data

The historical data trend for Pacific Textiles 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.

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Pacific Textiles Holdings Degree of Operating Leverage Chart

Pacific Textiles Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.32 2.10 -1.78 2.58 3.98

Pacific Textiles Holdings Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 4.21 2.58 2.89 3.98 -0.64

Competitive Comparison of Pacific Textiles Holdings's Degree of Operating Leverage

For the Textile Manufacturing subindustry, Pacific Textiles 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.


Pacific Textiles Holdings's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Pacific Textiles Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Pacific Textiles Holdings's Degree of Operating Leverage falls into.


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Pacific Textiles Holdings Degree of Operating Leverage Calculation

Pacific Textiles Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 26.813 (Sep. 2024) / 29.571 (Sep. 2023) - 1 )/( 587.215 (Sep. 2024) / 543.31 (Sep. 2023) - 1 )
=-0.0933/0.0808
=-1.15***

* 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.


Pacific Textiles Holdings  (FRA:WHE) 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.


Pacific Textiles Holdings Degree of Operating Leverage Related Terms

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Pacific Textiles Holdings Business Description

Traded in Other Exchanges
Address
48-56 Tai Lin Pai Road, Unit B1, 7th Floor, Block B, Eastern Sea Industrial Building, Kwai Chung, New Territories, Hong Kong, HKG
Pacific Textiles Holdings Ltd is an investment holding company. The company along with its subsidiaries, is engaged in the manufacturing and trading of textile products including cotton and synthetic knitted fabrics. Geographically, it derives a majority of its revenue from Vietnam and also has a presence in the People's Republic of China, Hong Kong, America, Sri Lanka, India, Haiti, Africa, Bangladesh, and other countries.

Pacific Textiles Holdings Headlines

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