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Wang On Group (HKSE:01222) Degree of Operating Leverage : 8.82 (As of Sep. 2024)


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What is Wang On Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Wang On Group's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 8.82. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Wang On Group's Degree of Operating Leverage or its related term are showing as below:

HKSE:01222's Degree of Operating Leverage is ranked worse than
83.39% of 548 companies
in the Conglomerates industry
Industry Median: 1.11 vs HKSE:01222: 8.82

Wang On Group Degree of Operating Leverage Historical Data

The historical data trend for Wang On Group'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.

Wang On Group Degree of Operating Leverage Chart

Wang On Group 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 0.26 1.30 29.98 29.80 5.18

Wang On Group 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 -1.77 29.80 97.47 5.18 8.82

Competitive Comparison of Wang On Group's Degree of Operating Leverage

For the Conglomerates subindustry, Wang On Group'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.


Wang On Group's Degree of Operating Leverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Wang On Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Wang On Group's Degree of Operating Leverage falls into.


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Wang On Group Degree of Operating Leverage Calculation

Wang On Group'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
=( -605.724 (Sep. 2024) / 601.349 (Sep. 2023) - 1 )/( 2077.159 (Sep. 2024) / 2689.098 (Sep. 2023) - 1 )
=-2.0073/-0.2276
=8.82***

* 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.


Wang On Group  (HKSE:01222) 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.


Wang On Group Degree of Operating Leverage Related Terms

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Wang On Group Business Description

Traded in Other Exchanges
Address
39 Wang Kwong Road, Suite 3202, 32nd Floor, Skyline Tower, Kowloon Bay, Kowloon, Hong Kong, HKG
Wang On Group Ltd is an investment holding company engaged in property development businesses. It operates in five business segments. The Property Development segment is engaged in the development of properties. The Property Investment segment is engaged in investment in industrial and commercial premises and residential units for rental or for sale. The Fresh markets segment is engaged in the management and sub-licensing of fresh markets and butchery business. The Pharmaceutical segment engages in the production and sale of pharmaceutical and health food products. The Treasury management segment engages in the provision of finance and investments in debt and other securities which earn interest income.
Executives
Alpadis Trust (hk) Limited
Esseiva Vanessa Teo
Esseiva Alain 2201 Interest of corporation controlled by you
Alpadis Group Holding Ag
Esseiva Alain
Tang Ching Ho 2201 Interest of corporation controlled by you
Yau Yuk Yin 2202 Interest of your spouse
Caister Limited
Wai Yuen Tong Medicine Holdings Limited 2201 Interest of corporation controlled by you
Heer Dominik Philipp 2201 Interest of corporation controlled by you
Heer Krinya 2202 Interest of your spouse
Teo Wei Lee 2202 Interest of your spouse
Teo Wei Lee 2202 Interest of your spouse
Total Smart Investments Limited 2201 Interest of corporation controlled by you
Hearty Limited 2101 Beneficial owner

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