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Fortune Real Estate Investment Trust (HKSE:00778) Degree of Operating Leverage : 30.94 (As of Dec. 2024)


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What is Fortune Real Estate Investment Trust Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Fortune Real Estate Investment Trust's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 30.94. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Fortune Real Estate Investment Trust's Degree of Operating Leverage or its related term are showing as below:

HKSE:00778's Degree of Operating Leverage is ranked worse than
90.31% of 743 companies
in the REITs industry
Industry Median: 1.19 vs HKSE:00778: 30.94

Fortune Real Estate Investment Trust Degree of Operating Leverage Historical Data

The historical data trend for Fortune Real Estate Investment Trust'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.

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Fortune Real Estate Investment Trust Degree of Operating Leverage Chart

Fortune Real Estate Investment Trust 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 41.11 77.97 16.61 -40.36 30.94

Fortune Real Estate Investment Trust 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 16.61 -20.81 -40.36 24.72 30.94

Competitive Comparison of Fortune Real Estate Investment Trust's Degree of Operating Leverage

For the REIT - Retail subindustry, Fortune Real Estate Investment Trust'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.


Fortune Real Estate Investment Trust's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Fortune Real Estate Investment Trust's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Fortune Real Estate Investment Trust's Degree of Operating Leverage falls into.


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Fortune Real Estate Investment Trust Degree of Operating Leverage Calculation

Fortune Real Estate Investment Trust'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
=( 158.767 (Dec. 2024) / 506.685 (Dec. 2023) - 1 )/( 1746.262 (Dec. 2024) / 1785.894 (Dec. 2023) - 1 )
=-0.6867/-0.0222
=30.94***

* 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.


Fortune Real Estate Investment Trust  (HKSE:00778) 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.


Fortune Real Estate Investment Trust Degree of Operating Leverage Related Terms

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Fortune Real Estate Investment Trust Business Description

Traded in Other Exchanges
Address
5 Temasek Boulevard, No. 12-01, Suntec Tower 5, Singapore, SGP, 038985
Fortune Real Estate Investment Trust is a real estate company that invests in retail shopping malls located in Hong Kong and Singapore with the primary objective of producing stable distributions for unitholders and achieving long-term growth in the net asset value per unit. The trust generates the majority of its revenue from rents and leases, with the remaining revenue from utility charges, management fees, car park revenue, license fees, and other sources. Fortune REIT's tenants include supermarkets, banking, and real estate services companies, restaurants, convenience stores, and general retailers.
Executives
Ck Asset Holdings Limited
Li Ka-shing

Fortune Real Estate Investment Trust Headlines

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