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Eminence Enterprise (HKSE:00616) Degree of Operating Leverage : 9.37 (As of Sep. 2024)


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What is Eminence Enterprise Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Eminence Enterprise's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 9.37. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:00616's Degree of Operating Leverage is ranked worse than
87.04% of 1698 companies
in the Real Estate industry
Industry Median: 0.92 vs HKSE:00616: 9.37

Eminence Enterprise Degree of Operating Leverage Historical Data

The historical data trend for Eminence Enterprise'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.

Eminence Enterprise Degree of Operating Leverage Chart

Eminence Enterprise 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 -10.26 16.92 3.09 0.95 -22.31

Eminence Enterprise 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 6.47 0.95 -2.21 -22.31 9.37

Competitive Comparison of Eminence Enterprise's Degree of Operating Leverage

For the Real Estate Services subindustry, Eminence Enterprise'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.


Eminence Enterprise's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Eminence Enterprise's Degree of Operating Leverage distribution charts can be found below:

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


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Eminence Enterprise Degree of Operating Leverage Calculation

Eminence Enterprise'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
=( -217.126 (Sep. 2024) / -109.463 (Sep. 2023) - 1 )/( 32.184 (Sep. 2024) / 29.127 (Sep. 2023) - 1 )
=0.9836/0.105
=9.37***

* 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.


Eminence Enterprise  (HKSE:00616) 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.


Eminence Enterprise Degree of Operating Leverage Related Terms

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


Eminence Enterprise Business Description

Traded in Other Exchanges
N/A
Address
481-483 Castle Peak Road, Block A, 7th Floor Hong Kong Spinners Building, Phase 6, Cheung Sha Wan, Kowloon, Hong Kong, HKG
Eminence Enterprise Ltd is principally engaged in property investment, property development, investment in securities and loan financing business segments. The company owns and invests in residential, commercial, and industrial properties. It is also involved sourcing and exporting garments, and holding and leasing residential and industrial investment properties. The firm generates its majority revenue from the Property investment segment.
Executives
Hu Rong 2101 Beneficial owner
Chan Lo Chiu Angus 2101 Beneficial owner
Hooper Christopher Geoffrey Douglas 2201 Interest of corporation controlled by you
Markson International Holding Limited 2201 Interest of corporation controlled by you
Hooper Ivan Geoffrey Douglas 2201 Interest of corporation controlled by you
Magical Profits Limited 2201 Interest of corporation controlled by you
Accumulate More Profits Limited 2201 Interest of corporation controlled by you
Goodco Development Limited 2101 Beneficial owner
Easyknit Properties Holdings Limited 2201 Interest of corporation controlled by you
Winterbotham Holdings Limited 2201 Interest of corporation controlled by you
The Winterbotham Trust Company Limited As Trustee Of The Magical 2000 Trust 2201 Interest of corporation controlled by you
Easyknit International Holdings Limited 2201 Interest of corporation controlled by you
Chu Nin Yiu, Stephen 2101 Beneficial owner
Law Sai Hung
Ng Wang Chun Joseph 2101 Beneficial owner

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