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Lai Fung Holdings (HKSE:01125) Degree of Operating Leverage : -4.49 (As of Jan. 2025)


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What is Lai Fung Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lai Fung Holdings's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was -4.49. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01125's Degree of Operating Leverage is ranked better than
83.92% of 1698 companies
in the Real Estate industry
Industry Median: 0.92 vs HKSE:01125: -4.49

Lai Fung Holdings Degree of Operating Leverage Historical Data

The historical data trend for Lai Fung 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.

Lai Fung Holdings Degree of Operating Leverage Chart

Lai Fung Holdings Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.92 -0.68 -19.15 3.11 46.15

Lai Fung Holdings Semi-Annual Data
Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25
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 0.53 3.11 35.40 46.15 -4.49

Competitive Comparison of Lai Fung Holdings's Degree of Operating Leverage

For the Real Estate - Development subindustry, Lai Fung 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.


Lai Fung Holdings's Degree of Operating Leverage Distribution in the Real Estate Industry

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

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


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Lai Fung Holdings Degree of Operating Leverage Calculation

Lai Fung Holdings's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 629.242 (Jan. 2025) / 243.929 (Jan. 2024) - 1 )/( 1431.313 (Jan. 2025) / 2207.435 (Jan. 2024) - 1 )
=1.5796/-0.3516
=-4.49***

* 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.


Lai Fung Holdings  (HKSE:01125) 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.


Lai Fung Holdings Degree of Operating Leverage Related Terms

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Lai Fung Holdings Business Description

Traded in Other Exchanges
N/A
Address
680 Cheung Sha Wan Road, 11th Floor, Lai Sun Commercial Centre, Kowloon, Hong Kong, HKG
Lai Fung Holdings Ltd is an investment holding company. The company's operating segment includes Property development; Property investment; Hotel and serviced apartment operation and Theme park operation. It generates maximum revenue from the Property development segment. The property development segment engages in the development of properties for sale in Mainland China. Geographically, the company generates a majority of its revenue from Mainland China.
Executives
Lam Kin Ngok Peter
Yu Cheuk Yi 2103 Interests held jointly with another person
Yu Siu Yuk 2103 Interests held jointly with another person
Capitaland Limited 2201 Interest of corporation controlled by you
Lai Sun Development Company Limited 2201 Interest of corporation controlled by you
Lai Sun Garment (international) Limited 2201 Interest of corporation controlled by you
Moerus Capital Management Llc 2102 Investment manager
Temasek Holdings (private) Limited 2201 Interest of corporation controlled by you

Lai Fung Holdings Headlines

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