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Wang On Properties (HKSE:01243) Degree of Operating Leverage : 4.06 (As of Sep. 2024)


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What is Wang On Properties Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Wang On Properties's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 4.06. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01243's Degree of Operating Leverage is ranked worse than
77.39% of 1703 companies
in the Real Estate industry
Industry Median: 0.91 vs HKSE:01243: 4.06

Wang On Properties Degree of Operating Leverage Historical Data

The historical data trend for Wang On Properties'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 Properties Degree of Operating Leverage Chart

Wang On Properties 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 2.13 0.26 0.42 - 3.07

Wang On Properties 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 -0.04 - -4.27 3.07 4.06

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

For the Real Estate - Development subindustry, Wang On Properties'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 Properties's Degree of Operating Leverage Distribution in the Real Estate Industry

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

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


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Wang On Properties Degree of Operating Leverage Calculation

Wang On Properties'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
=( -711.973 (Sep. 2024) / 567.911 (Sep. 2023) - 1 )/( 452.906 (Sep. 2024) / 1017.709 (Sep. 2023) - 1 )
=-2.2537/-0.555
=4.06***

* 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 Properties  (HKSE:01243) 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 Properties Degree of Operating Leverage Related Terms

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Wang On Properties Business Description

Traded in Other Exchanges
N/A
Address
39 Wang Kwong Road, Suite 3201, 32nd Floor, Skyline Tower, Kowloon Bay, Kowloon, Hong Kong, HKG
Wang On Properties Ltd is engaged in property development and property investment in Hong Kong. The company's business segments are Property development and trading, Asset management segment, and Property investment. The Property development segment, which is the key revenue-driving segment, engages in the development of properties whereas the Property Investment segment engages in the investment in commercial and industrial premises for rental or for sale. The Asset Management segment earns fee income for managing assets on behalf of the group's capital partners via investment vehicles. The company operates its business in Hong Kong. It derives maximum revenue from Property development and trading.
Executives
Tang Ching Ho 2201 Interest of corporation controlled by you
Yau Yuk Yin 2202 Interest of your spouse

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