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Hongkong Chinese (HKSE:00655) Degree of Operating Leverage : 278.68 (As of Dec. 2024)


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What is Hongkong Chinese Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hongkong Chinese's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 278.68. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:00655's Degree of Operating Leverage is ranked worse than
98.59% of 1697 companies
in the Real Estate industry
Industry Median: 0.92 vs HKSE:00655: 278.68

Hongkong Chinese Degree of Operating Leverage Historical Data

The historical data trend for Hongkong Chinese'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.

Hongkong Chinese Degree of Operating Leverage Chart

Hongkong Chinese Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1,232.77 3.49 2.14 -14.98 278.68

Hongkong Chinese Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 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 2.14 10.22 -14.98 -69.69 278.68

Competitive Comparison of Hongkong Chinese's Degree of Operating Leverage

For the Real Estate Services subindustry, Hongkong Chinese'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.


Hongkong Chinese's Degree of Operating Leverage Distribution in the Real Estate Industry

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

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


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Hongkong Chinese Degree of Operating Leverage Calculation

Hongkong Chinese'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
=( -1161.856 (Dec. 2024) / 185.544 (Dec. 2023) - 1 )/( 72.845 (Dec. 2024) / 74.794 (Dec. 2023) - 1 )
=-7.2619/-0.0261
=278.68***

* 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.


Hongkong Chinese  (HKSE:00655) 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.


Hongkong Chinese Degree of Operating Leverage Related Terms

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


Hongkong Chinese Business Description

Traded in Other Exchanges
Address
Lippo Centre, 89 Queensway, 40th Floor, Tower Two, Hong Kong, HKG
Hongkong Chinese Ltd is an investment holding company. The company's operating segments are Property Investment, which includes investments relating to the letting and resale of properties and generates maximum revenue for the company; the Property development segment is into the development and sale of properties; the Treasury investment segment includes investments in money markets; the Securities investment segment invests in securities that are held for trading and for long-term strategic purpose; and Others. The geographical segments are Hong Kong, Mainland China, Singapore, Indonesia, and others. The company derives maximum revenue from Singapore.
Executives
Hambali Aileen
Lippo Capital Group Limited
Lippo Capital Holdings Company Limited
Lippo Capital Limited
Lippo Limited
Pt Trijaya Utama Mandiri
Riady James Tjahaja
Leonardi Shincee
Riady Stephen
Hennessy Holdings Limited
Huge Success Limited 2201 Interest of corporation controlled by you
Prime Success Limited 2201 Interest of corporation controlled by you

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