GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Cherish Sunshine International Ltd (HKSE:01094) » Definitions » Degree of Operating Leverage

Cherish Sunshine International (HKSE:01094) Degree of Operating Leverage : -2.12 (As of Sep. 2024)


View and export this data going back to 2002. Start your Free Trial

What is Cherish Sunshine International Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Cherish Sunshine International's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -2.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Cherish Sunshine International's Degree of Operating Leverage or its related term are showing as below:

HKSE:01094's Degree of Operating Leverage is ranked better than
77.7% of 547 companies
in the Conglomerates industry
Industry Median: 1.1 vs HKSE:01094: -2.12

Cherish Sunshine International Degree of Operating Leverage Historical Data

The historical data trend for Cherish Sunshine International'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.

Cherish Sunshine International Degree of Operating Leverage Chart

Cherish Sunshine International Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.51 -46.03 -37.79 -0.79 -7.95

Cherish Sunshine International Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 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 -8.59 -0.79 -1.16 -7.95 -2.12

Competitive Comparison of Cherish Sunshine International's Degree of Operating Leverage

For the Conglomerates subindustry, Cherish Sunshine International'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.


Cherish Sunshine International's Degree of Operating Leverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Cherish Sunshine International's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Cherish Sunshine International's Degree of Operating Leverage falls into.


;
;

Cherish Sunshine International Degree of Operating Leverage Calculation

Cherish Sunshine International'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
=( -7.199 (Sep. 2024) / 21.149 (Sep. 2023) - 1 )/( 661.4 (Sep. 2024) / 405.367 (Sep. 2023) - 1 )
=-1.3404/0.6316
=-2.12***

* 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.


Cherish Sunshine International  (HKSE:01094) 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.


Cherish Sunshine International Degree of Operating Leverage Related Terms

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


Cherish Sunshine International Business Description

Traded in Other Exchanges
N/A
Address
No. 1818–2 Wenyi West Road, Yuhang Street, Unit 109–14, Block 1, Yuhang District, Zhejiang Province, Hangzhou, CHN
Cherish Sunshine International Ltd is a provider of one-stop integrated procurement service solutions in China. Its segments are the provision of procurement services and other IT services, trading business, rental income, and energy management contracting business. The majority of the revenue derives from the trading segment which engaged in the Trading of general goods.
Executives
Zhang Yibin 2101 Beneficial owner
Eastmount Global Limited 2101 Beneficial owner
Liu Luoxiu 2307 Founder of a discretionary trust who can infl
Wu Siyuan 2501 Other
Trident Trust Company (singapore) Pte Limited 2301 Trustee
Jiang Xi Yin Xing Gu Fen You Xian Gong Si 2106 Person having a security interest in shares

Cherish Sunshine International Headlines

No Headlines