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Tsui Wah Holdings (HKSE:01314) Degree of Operating Leverage : -9.17 (As of Sep. 2024)


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What is Tsui Wah Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Tsui Wah Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -9.17. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01314's Degree of Operating Leverage is ranked better than
88.08% of 344 companies
in the Restaurants industry
Industry Median: 1.22 vs HKSE:01314: -9.17

Tsui Wah Holdings Degree of Operating Leverage Historical Data

The historical data trend for Tsui Wah 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.

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Tsui Wah Holdings Degree of Operating Leverage Chart

Tsui Wah Holdings 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 55.98 2.15 1.36 12.00 -3.18

Tsui Wah Holdings 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 3.15 12.00 -47.53 -3.18 -9.17

Competitive Comparison of Tsui Wah Holdings's Degree of Operating Leverage

For the Restaurants subindustry, Tsui Wah 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.


Tsui Wah Holdings's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Tsui Wah Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Tsui Wah Holdings Degree of Operating Leverage Calculation

Tsui Wah Holdings'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
=( 44.153 (Sep. 2024) / 35.876 (Sep. 2023) - 1 )/( 905.163 (Sep. 2024) / 928.518 (Sep. 2023) - 1 )
=0.2307/-0.0252
=-9.17***

* 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.


Tsui Wah Holdings  (HKSE:01314) 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.


Tsui Wah Holdings Degree of Operating Leverage Related Terms

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Tsui Wah Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 3 On Yiu Street, Units 1–6, 2/F, Delta House, Sha Tin, New Territories, Hong Kong, HKG
Tsui Wah Holdings Ltd is an investment holding company. It is principally engaged in the provision of food catering services through restaurants in Hong Kong, the People's Republic of China, Macau, and Others. Geographically the majority of its revenue comes from Hong Kong.
Executives
Boost Treasure Limited 2301 Trustee
Tricor Trust (hong Kong) Limited 2301 Trustee
Cheung Yu To 2103 Interests held jointly with another person
Ho Ting Chi 2103 Interests held jointly with another person
Chan Choi Fung 2202 Interest of your spouse
Lee Yuen Hong 2103 Interests held jointly with another person
Cheung Wai Keung 2103 Interests held jointly with another person
Cheung Yue Pui 2103 Interests held jointly with another person
Lam Hiu Man 2202 Interest of your spouse
Lui Ning 2202 Interest of your spouse
Tai Ngan Har Talia 2202 Interest of your spouse
Woo Chun Li 2202 Interest of your spouse

Tsui Wah Holdings Headlines

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