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Major Holdings (HKSE:01389) Degree of Operating Leverage : 0.39 (As of Mar. 2025)


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What is Major Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Major Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.39. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01389's Degree of Operating Leverage is ranked better than
62.98% of 208 companies
in the Beverages - Alcoholic industry
Industry Median: 1.365 vs HKSE:01389: 0.39

Major Holdings Degree of Operating Leverage Historical Data

The historical data trend for Major 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.

Major Holdings Degree of Operating Leverage Chart

Major Holdings Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.29 0.55 -9.03 0.30 -

Major Holdings Semi-Annual Data
Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25
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 -9.03 -5.94 0.30 0.39 -

Competitive Comparison of Major Holdings's Degree of Operating Leverage

For the Beverages - Wineries & Distilleries subindustry, Major 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.


Major Holdings's Degree of Operating Leverage Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Major Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Major Holdings Degree of Operating Leverage Calculation

Major Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -12.977 (Mar. 2025) / -15.135 (Mar. 2024) - 1 )/( 58.025 (Mar. 2025) / 63.039 (Mar. 2024) - 1 )
=-0.1426/-0.0795
=1.79***

* 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.


Major Holdings  (HKSE:01389) 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.


Major Holdings Degree of Operating Leverage Related Terms

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Major Holdings Business Description

Traded in Other Exchanges
N/A
Address
30 Canton Road, Suite 1507, Tower 2, Silvercord, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
Major Holdings Ltd is an investment holding company. The company is principally engaged in the distribution of wine and spirit products and wine accessory products in Hong Kong. The products of the company include Red wine, White wine, Sparkling wine, Spirits, Sake, Wine accessory products, and other products. The group offers products through its retail showrooms, a network of distributors, retail organizations, five-star hotels, and private clubs. The majority of the revenue of the company is derived from Hong Kong.
Executives
Silver Tycoon Limited 2101 Beneficial owner
Zhang Guangyuan 2101 Beneficial owner
Zhang Guozhong 2101 Beneficial owner
Cheung Chun To 2201 Interest of corporation controlled by you
Lin Shuk Shuen 2101 Beneficial owner
Zheng Huanming 2101 Beneficial owner
High State Investments Limited 2101 Beneficial owner
Leung Chi Kin Joseph 2201 Interest of corporation controlled by you
Ma Pui Ying 2202 Interest of your spouse
Lai Wai Kong 2101 Beneficial owner

Major Holdings Headlines

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