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WH Group (HKSE:00288) Degree of Operating Leverage : -68.09 (As of Dec. 2024)


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What is WH Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. WH Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -68.09. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for WH Group's Degree of Operating Leverage or its related term are showing as below:

HKSE:00288's Degree of Operating Leverage is ranked better than
96.57% of 1839 companies
in the Consumer Packaged Goods industry
Industry Median: 1.04 vs HKSE:00288: -68.09

WH Group Degree of Operating Leverage Historical Data

The historical data trend for WH Group'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.

WH Group Degree of Operating Leverage Chart

WH Group 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 -6.33 3.79 8.60 7.22 -68.09

WH Group Quarterly Data
Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23 Jun24 Sep24 Dec24 Mar25
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 7.22 5.01 - -68.09 -

Competitive Comparison of WH Group's Degree of Operating Leverage

For the Packaged Foods subindustry, WH Group'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.


WH Group's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, WH Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where WH Group's Degree of Operating Leverage falls into.


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WH Group Degree of Operating Leverage Calculation

WH Group'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
=( 19845.49 (Dec. 2024) / 9543.576 (Dec. 2023) - 1 )/( 201649.769 (Dec. 2024) / 204897.913 (Dec. 2023) - 1 )
=1.0795/-0.0159
=-68.09***

* 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.


WH Group  (HKSE:00288) 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.


WH Group Degree of Operating Leverage Related Terms

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


WH Group Business Description

Address
1 Austin Road West, Unit 7602B-7604A, Level 76, International Commerce Centre, Kowloon, Hong Kong, HKG
WH Group is a holding company and the world's largest vertically integrated producer of pork and related packaged meat products. Its revenue is mainly derived from activities undertaken by its China and US operations, which are respectively via 70.3%-owned Henan Shuanghui Investment & Development Company and wholly owned Smithfield Foods Inc. In the US, its key packaged meats brands, in which it has a 6% market share, include Nathan's hot dogs, Armour, John Morrell, and Curly's, while in China, products are mainly under the Shuanghui brand, where it also has a 32% market share. We expect the company's operating profit to be split almost equally between the US and China in the future with a small contribution from Europe.
Executives
The Bank Of New York Mellon Corporation 2201 Interest of corporation controlled by you
Ma Xiangjie 2305 Beneficiary of a trust
Cantrust (far East) Limited 2301 Trustee
Wlt Management Limited 2201 Interest of corporation controlled by you
Wan Long 2307 Founder of a discretionary trust who can infl
Wang Meixiang 2202 Interest of your spouse
Xing Tong You Xian Gong Si 2501 Other
Blackrock, Inc. 2201 Interest of corporation controlled by you
Liu Songtao 2301 Trustee
Guo Lijun 2307 Founder of a discretionary trust who can infl
Mondrian Investment Partners Limited 2102 Investment manager
Zhang Liwen 2301 Trustee
Xiong Yu Tou Zi You Xian Gong Si 2101 Beneficial owner
Xing Tai Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you

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