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Shandong Hi Speed New Energy Group (HKSE:01250) Degree of Operating Leverage : 2.44 (As of Dec. 2024)


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What is Shandong Hi Speed New Energy Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Shandong Hi Speed New Energy Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 2.44. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Shandong Hi Speed New Energy Group's Degree of Operating Leverage or its related term are showing as below:

HKSE:01250's Degree of Operating Leverage is ranked worse than
72.32% of 401 companies
in the Utilities - Independent Power Producers industry
Industry Median: 0.63 vs HKSE:01250: 2.44

Shandong Hi Speed New Energy Group Degree of Operating Leverage Historical Data

The historical data trend for Shandong Hi Speed New Energy 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.

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Shandong Hi Speed New Energy Group Degree of Operating Leverage Chart

Shandong Hi Speed New Energy Group 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 -0.35 -5.33 -4.78 -0.53 2.44

Shandong Hi Speed New Energy Group 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 -4.78 -8.33 -0.53 -0.04 2.44

Competitive Comparison of Shandong Hi Speed New Energy Group's Degree of Operating Leverage

For the Utilities - Renewable subindustry, Shandong Hi Speed New Energy 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.


Shandong Hi Speed New Energy Group's Degree of Operating Leverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Shandong Hi Speed New Energy Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Shandong Hi Speed New Energy Group's Degree of Operating Leverage falls into.


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Shandong Hi Speed New Energy Group Degree of Operating Leverage Calculation

Shandong Hi Speed New Energy Group'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
=( 1928.225 (Dec. 2024) / 2123.687 (Dec. 2023) - 1 )/( 4722.47 (Dec. 2024) / 4907.722 (Dec. 2023) - 1 )
=-0.092/-0.0377
=2.44***

* 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.


Shandong Hi Speed New Energy Group  (HKSE:01250) 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.


Shandong Hi Speed New Energy Group Degree of Operating Leverage Related Terms

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Shandong Hi Speed New Energy Group Business Description

Traded in Other Exchanges
N/A
Address
99 Queen’s Road Central, 38th Floor, The Centre, Central, Hong Kong, HKG
Shandong Hi Speed New Energy Group Ltd is engaged in the investment, development, construction, operation and management of photovoltaic power businesses; wind power businesses; and clean heat supply service businesses in the People's Republic of China. Its segments include the Construction-related business segment engages in the provision of construction and related services of the clean energy business; and the Operation of Clean Energy Projects segment engages in the investment and development of the photovoltaic power business, the wind power business and provision of clean heat supply services. Majority of the revenue is derived from the Operation of Clean Energy Projects segment.
Executives
Shandong Hi-speed Holdings Group Limited 2101 Beneficial owner
Shan Dong Gao Su Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Citic Securities Company Limited 2201 Interest of corporation controlled by you
Citron Pe Associates Ii, L.p. 2201 Interest of corporation controlled by you
Citron Pe Holdings Limited 2201 Interest of corporation controlled by you
Cpechina Fund Ii, L.p. 2201 Interest of corporation controlled by you
Cpechina Fund Iia, L.p. 2201 Interest of corporation controlled by you
Zhong Xin Chan Ye Tou Zi Ji Jin Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Bei Jing Xin Yu Tou Zi Zhong Xin You Xian He Huo 2201 Interest of corporation controlled by you
Bei Jing You De Tou Zi Guan Li Zhong Xin You Xian He Huo 2201 Interest of corporation controlled by you
Citigroup Inc. 2305 Beneficiary of a trust
Profit Plan Global Investment Limited 2101 Beneficial owner
Beijing Enterprises Group Company Limited 2201 Interest of corporation controlled by you
Beijing Enterprises Holdings Limited 2201 Interest of corporation controlled by you
Beijing Enterprises Water Group Limited 2201 Interest of corporation controlled by you

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