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Kontafarma China Holdings (HKSE:01312) Degree of Operating Leverage : 17.85 (As of Dec. 2024)


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What is Kontafarma China Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Kontafarma China Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 17.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01312's Degree of Operating Leverage is ranked worse than
91.18% of 952 companies
in the Drug Manufacturers industry
Industry Median: 0.655 vs HKSE:01312: 17.85

Kontafarma China Holdings Degree of Operating Leverage Historical Data

The historical data trend for Kontafarma China 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.

Kontafarma China Holdings Degree of Operating Leverage Chart

Kontafarma China Holdings 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 -7.20 8.18 31.22 7.33 17.85

Kontafarma China Holdings 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 31.22 -2,311.36 7.33 139.59 17.85

Competitive Comparison of Kontafarma China Holdings's Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, Kontafarma China 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.


Kontafarma China Holdings's Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Kontafarma China Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Kontafarma China Holdings Degree of Operating Leverage Calculation

Kontafarma China Holdings'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
=( -84.587 (Dec. 2024) / -28.669 (Dec. 2023) - 1 )/( 897.521 (Dec. 2024) / 809.107 (Dec. 2023) - 1 )
=1.9505/0.1093
=17.85***

* 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.


Kontafarma China Holdings  (HKSE:01312) 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.


Kontafarma China Holdings Degree of Operating Leverage Related Terms

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Kontafarma China Holdings Business Description

Traded in Other Exchanges
N/A
Address
30 Harbour Road, Room 12A 09-20, 12th Floor, Sun Hung Kai Centre, Wanchai, Hong Kong, HKG
Kontafarma China Holdings Ltd is principally engaged in the manufacture and sale of prescription drugs including chemical drugs active pharmaceutical ingredients and API intermediates in the PRC, operating of fitness centres and provision of consultation services for fitness and health activities and operating of the franchise business for royalty fee income. The operating segments include the pharmaceutical business and the Fitness business. The majority of its revenue derives from the pharmaceutical business segment.
Executives
Ning Bo Bao Shui Qu San Jin Guo Tou Gu Quan Tou Zi Ji Jin He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Shan Xi Jiao Tong Kong Gu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Shan Xi Jian She Tou Zi Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Shan Xi Sheng Ren Min Zheng Fu Guo You Zi Chan Jian Du Guan Li Wei Yuan Hui 2201 Interest of corporation controlled by you
Shan Xi Sheng Gao Su Gong Lu Ji Tuan You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you
Shan Xi Sheng Guo You Zi Ben Yun Ying You Xian Gong Si Qian Cheng Shan Xi Sheng Guo You Zi Ben Tou Z 2201 Interest of corporation controlled by you
China Health Management Investment Limited 2101 Beneficial owner
Waranty Assets Management (hk) Limited 2201 Interest of corporation controlled by you
Shen Zhen Shi Hua Rong Tai Zi Chan Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Resuccess Investments Limited
Thtf Energy-saving Holdings Limited

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