GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Culturecom Holdings Ltd (HKSE:00343) » Definitions » Degree of Operating Leverage

Culturecom Holdings (HKSE:00343) Degree of Operating Leverage : 3.14 (As of Sep. 2024)


View and export this data going back to 1986. Start your Free Trial

What is Culturecom Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Culturecom Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 3.14. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:00343's Degree of Operating Leverage is ranked worse than
67.07% of 987 companies
in the Media - Diversified industry
Industry Median: 1.17 vs HKSE:00343: 3.14

Culturecom Holdings Degree of Operating Leverage Historical Data

The historical data trend for Culturecom 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.

* Premium members only.

Culturecom Holdings Degree of Operating Leverage Chart

Culturecom 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 0.24 0.45 0.63 0.01 1.35

Culturecom 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 0.58 0.01 0.32 1.35 3.14

Competitive Comparison of Culturecom Holdings's Degree of Operating Leverage

For the Advertising Agencies subindustry, Culturecom 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.


Culturecom Holdings's Degree of Operating Leverage Distribution in the Media - Diversified Industry

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

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


;
;

Culturecom Holdings Degree of Operating Leverage Calculation

Culturecom 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
=( -13.493 (Sep. 2024) / -33.631 (Sep. 2023) - 1 )/( 18.595 (Sep. 2024) / 22.973 (Sep. 2023) - 1 )
=-0.5988/-0.1906
=3.14***

* 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.


Culturecom Holdings  (HKSE:00343) 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.


Culturecom Holdings Degree of Operating Leverage Related Terms

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


Culturecom Holdings Business Description

Traded in Other Exchanges
N/A
Address
16 Harcourt Road, Suite 1502, 15th Floor, Far East Finance Centre, Admiralty, Hong Kong, HKG
Culturecom Holdings Ltd is an investment holding company. The company's operating segment include Publishing and intellectual properties licensing; Digital Marketing; Natural language processing; and Retailing and wholesales. Publishing segment covers the publication of comic books and royalty income from licensing intellectual properties of comic books. It generates maximum revenue from the Digital Marketing segment that provides digital marketing and communication, IP digitalization and agency of IP services in the PRC. Geographically, it derives a majority of revenue from Hong Kong.
Executives
L & W Holding Limited 2201 Interest of corporation controlled by you
Chow Lai Wah Livia 2201 Interest of corporation controlled by you
Dizon Basilio 2201 Interest of corporation controlled by you
Guang Xi Fu Chuan Hua Fa Ke Ji Gu Fen You Xian Gong Si 2101 Beneficial owner
Luo Ding Shi Si Lun Ting Ying Jiao Yu Ji Jin Hui 2101 Beneficial owner

Culturecom Holdings Headlines

No Headlines