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Future World Holdings (HKSE:00572) Degree of Operating Leverage : -1.24 (As of Dec. 2024)


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What is Future World Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Future World Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -1.24. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:00572's Degree of Operating Leverage is ranked better than
72.21% of 806 companies
in the Travel & Leisure industry
Industry Median: 1.21 vs HKSE:00572: -1.24

Future World Holdings Degree of Operating Leverage Historical Data

The historical data trend for Future World 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.

Future World Holdings Degree of Operating Leverage Chart

Future World Holdings 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 -0.41 1.05 -4.93 -123.03 -1.24

Future World Holdings Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 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 -4.93 -7.25 -123.03 -0.36 -1.24

Competitive Comparison of Future World Holdings's Degree of Operating Leverage

For the Lodging subindustry, Future World 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.


Future World Holdings's Degree of Operating Leverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Future World Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Future World Holdings Degree of Operating Leverage Calculation

Future World Holdings'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
=( 59.853 (Dec. 2024) / -131.642 (Dec. 2023) - 1 )/( 84.458 (Dec. 2024) / 38.948 (Dec. 2023) - 1 )
=-1.4547/1.1685
=-1.24***

* 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.


Future World Holdings  (HKSE:00572) 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.


Future World Holdings Degree of Operating Leverage Related Terms

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Future World Holdings Business Description

Traded in Other Exchanges
N/A
Address
181 Johnston Road, Unit 612, Tai Yau Building, Wanchai, Hong Kong, HKG
Future World Holdings Ltd is an investment holding company. The company and its subsidiaries are principally engaged in the businesses of(i) hotel operation and ancillary services; (ii) property investment, management and agency services; (iii) provision of financing services; (iv) securities trading and investment; (v) securities brokerage business; (vi) trading business and related services; and (vii) high technology business. The majority of revenue for the company is derived from the hotel operation and ancillary services segment. The group's operations are located in Hong Kong and the PRC, of which key revenue is derived from Hong Kong.
Executives
Sin Lik Man 2101 Beneficial owner
Chu Yuk Shun Joseph 2101 Beneficial owner
Lai Long Wai 2201 Interest of corporation controlled by you
China Clean Energy Technology Limited 2101 Beneficial owner
Chu Mo Kwan 2101 Beneficial owner
Zhao Zhiqiang 2101 Beneficial owner
Fang Wen Wen
Chu Mo Kwan
Yang Xuanzi 2101 Beneficial owner
Yip Chun Tat 2101 Beneficial owner
Tan Jinkang 2101 Beneficial owner
Liu Mingzhong 2101 Beneficial owner
East Jumbo Development Limited 2501 Other
Or Den Fung Bonnie 2401 A concert party to an agreement to buy shares
Ha Gong Da Ji Qi Ren Ji Tuan Shang Hai Ke Ji Fu Wu You Xian Gong Si

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