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Sprocomm Intelligence (HKSE:01401) Degree of Operating Leverage : -31.33 (As of Dec. 2024)


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What is Sprocomm Intelligence Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sprocomm Intelligence's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -31.33. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01401's Degree of Operating Leverage is ranked better than
94.74% of 2413 companies
in the Hardware industry
Industry Median: 1 vs HKSE:01401: -31.33

Sprocomm Intelligence Degree of Operating Leverage Historical Data

The historical data trend for Sprocomm Intelligence'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.

Sprocomm Intelligence Degree of Operating Leverage Chart

Sprocomm Intelligence Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only 1.02 23.46 11.01 1.83 -31.33

Sprocomm Intelligence Semi-Annual Data
Dec16 Dec17 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 11.01 1.13 1.83 1.56 -31.33

Competitive Comparison of Sprocomm Intelligence's Degree of Operating Leverage

For the Consumer Electronics subindustry, Sprocomm Intelligence'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.


Sprocomm Intelligence's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Sprocomm Intelligence's Degree of Operating Leverage distribution charts can be found below:

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


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Sprocomm Intelligence Degree of Operating Leverage Calculation

Sprocomm Intelligence'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
=( 60.358 (Dec. 2024) / 83.38 (Dec. 2023) - 1 )/( 3114.863 (Dec. 2024) / 3087.651 (Dec. 2023) - 1 )
=-0.2761/0.0088
=-31.33***

* 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.


Sprocomm Intelligence  (HKSE:01401) 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.


Sprocomm Intelligence Degree of Operating Leverage Related Terms

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Sprocomm Intelligence Business Description

Traded in Other Exchanges
N/A
Address
No. 6018 North Ring Boulevard, Meilin Street, 33rd Floor, Building 1, Huaqiang Science and Technology Innovation Plaza, Futian District, Shenzhen, CHN, 518000
Sprocomm Intelligence Ltd is an investment holding company. Along with its subsidiaries, it operates as a mobile phone supplier based in the PRC, mainly engaged in research and development, designing, manufacturing, and sale of mobile phones, printed circuit board assembly products (PCBAs) for mobile phones, and IoT-related products, targeting emerging markets. It generates a majority of its revenue from the sale of feature phones and smartphones. Geographically, the group derives its key revenue from the People's Republic of China (PRC), and also has a presence in India, Pakistan, the United States of America, Bangladesh, Algeria, Yemen, Dubai, and other markets.
Executives
Leap Elite Limited 2101 Beneficial owner
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Sui Rongmei 2202 Interest of your spouse
Beyond Innovation Limited 2101 Beneficial owner
Xiong Bin 2307 Founder of a discretionary trust who can infl
Yan Xue 2202 Interest of your spouse
Jz Capital Limited 2101 Beneficial owner
Ko Hin Ting James 2201 Interest of corporation controlled by you
Jz Capital Limited 2101 Beneficial owner
Chu Wing Yee 2202 Interest of your spouse

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