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HAO (Haoxi Health Technology) Degree of Operating Leverage : -2.49 (As of Dec. 2024)


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What is Haoxi Health Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Haoxi Health Technology's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -2.49. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Haoxi Health Technology's Degree of Operating Leverage or its related term are showing as below:

HAO's Degree of Operating Leverage is ranked better than
75.5% of 996 companies
in the Media - Diversified industry
Industry Median: 1.11 vs HAO: -2.49

Haoxi Health Technology Degree of Operating Leverage Historical Data

The historical data trend for Haoxi Health Technology'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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Haoxi Health Technology Degree of Operating Leverage Chart

Haoxi Health Technology Annual Data
Trend Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
- -0.72 4.69 0.65

Haoxi Health Technology Semi-Annual Data
Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial 3.10 4.69 1.01 0.65 -2.49

Competitive Comparison of Haoxi Health Technology's Degree of Operating Leverage

For the Advertising Agencies subindustry, Haoxi Health Technology'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.


Haoxi Health Technology's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Haoxi Health Technology's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Haoxi Health Technology's Degree of Operating Leverage falls into.


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Haoxi Health Technology Degree of Operating Leverage Calculation

Haoxi Health Technology'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
=( 0.961 (Dec. 2024) / 1.536 (Dec. 2023) - 1 )/( 48.971 (Dec. 2024) / 42.57 (Dec. 2023) - 1 )
=-0.3743/0.1504
=-2.49***

* 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.


Haoxi Health Technology  (NAS:HAO) 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.


Haoxi Health Technology Degree of Operating Leverage Related Terms

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Haoxi Health Technology Business Description

Traded in Other Exchanges
N/A
Address
Room 801, Tower C, Floor 8, Building 103, Building 103, Huizhongli, Chaoyang, Beijing, CHN
Haoxi Health Technology Ltd is an online marketing solution provider in China, with an advertiser client base mainly in the healthcare industry. Haoxi has been rooted in the field of local online effect marketing for many years, serving customers in various industries at home and abroad, and its main business is the medical industry. It generates its revenue by providing one-stop online marketing solutions, in particular online short video marketing solutions, to advertisers through its media partners. The company provides customized marketing solutions by planning, producing, placing, and optimizing online ads, especially online short video ads, to help its advertisers acquire, convert, and retain ultimate consumers on various online media platforms.