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HCIL (Hongchang International Co) Degree of Operating Leverage : -2.68 (As of Dec. 2024)


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What is Hongchang International Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hongchang International Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -2.68. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HCIL's Degree of Operating Leverage is ranked better than
80.4% of 301 companies
in the Retail - Defensive industry
Industry Median: 0.89 vs HCIL: -2.68

Hongchang International Co Degree of Operating Leverage Historical Data

The historical data trend for Hongchang International 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.

Hongchang International Co Degree of Operating Leverage Chart

Hongchang International Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.34 0.73 - - -2.68

Hongchang International Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 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 - - - - -2.68

Competitive Comparison of Hongchang International Co's Degree of Operating Leverage

For the Food Distribution subindustry, Hongchang International 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.


Hongchang International Co's Degree of Operating Leverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Hongchang International Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Hongchang International Co's Degree of Operating Leverage falls into.


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Hongchang International Co Degree of Operating Leverage Calculation

Hongchang International 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
=( -0.38 (Dec. 2024) / -0.47 (Dec. 2023) - 1 )/( 2.867 (Dec. 2024) / 2.676 (Dec. 2023) - 1 )
=-0.1915/0.0714
=-2.68***

* 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.


Hongchang International Co  (OTCPK:HCIL) 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.


Hongchang International Co Degree of Operating Leverage Related Terms

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


Hongchang International Co Business Description

Traded in Other Exchanges
N/A
Address
Hongchang Food Co., Ltd, Block 20, Yuanhong Investment Zone, Donggao Village, Chengtou Town, Fuqing City, Fujian Province, Fuzhou, CHN, 350300
Hongchang International Co Ltd is a company mainly exports frozen fruits and vegetables, aquatic products. It has its own factory and agricultural base to produce fresh fruits, and the contract factory to produce frozen fruits and vegetables. Their products are mainly supplied to the world supermarkets, as well as wholesale in the United States, Southeast Asia, the Middle East, Europe and other countries.
Executives
Ban Siong Ang director, 10 percent owner 1986, PERMATANG BERANGAN,, TASEK GELUGOR, PENANG N8 13300
Xingjia Gao director ROOM 1007, XIANGYUN BUILDING, NO.1400, BAIYUN AV., NORTH GUANGZHOU F4 510440
Zengqiang Lin director, 10 percent owner, officer: CEO, President 1008, BLOCK B, RONGSHANG BUILDING, FUQING CITY F4 350309
Zhenzhu Lin director, 10 percent owner 1008, BLOCK B, RONGSHANG BUILDING, FUQING CITY F4 350309
Hung Seng Tan director 38, LORONG SERI PETALING 1/1, TAMAN SERI PETALING, KULIM,KEDAM N8 09000
Daniel C Master other: Former Pres, Direct, 10% owner P O BOX 66, LA JOLLA CA 92038
Kwee Huwa Tan director NO 8-1F, JALAN GAMALAN INDAH 1, TAMAN GAMELAN INDAH, SINGAI BAKAP N8 14200
Wei Li officer: Chief Financial Officer 4TH FLOOR, NO. 10 BLDG, XINGLIN BAY, BUSINESS OPERATION CENTER, JIMEI DISTR., XIAMEN F4 00000
Derald M Miller director 230 WEST 400 SOUTH, 1ST FLOOR, SALT LAKE CITY UT 84101
K Lance Bell director, officer: CEO, President 230 WEST 400 SOUTH 1ST FLOOR, SALT LAKE CITY UT 84101
Tanner J Purser officer: Secretary 230 WEST 400 SOUTH, 1ST FLOOR, SALT LAKE CITY UT 84101
James C Roundy director, officer: vice president 230 WEST 400 SOUTH 1ST FLOOR, SALK LAKE CITY UT 84101
Robert Brett Bell officer: Secretary 180 SOUTH 300 WEST, SUITE 400, SALT LAKE CITY UT 84101
Allan E Oepping other: Former director 180 SOUTH 300 WEST, SUITE 400, SALT LAKE CITY UT 84101
Benjamin A Black other: Former director 180 SOUTH 300 WEST, SUITE 400, SALT LAKE CITY UT 84101

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