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FEG Holdings (HKSE:01413) Degree of Operating Leverage : -0.78 (As of Sep. 2024)


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What is FEG Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. FEG Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -0.78. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01413's Degree of Operating Leverage is ranked better than
74.04% of 1672 companies
in the Construction industry
Industry Median: 0.99 vs HKSE:01413: -0.78

FEG Holdings Degree of Operating Leverage Historical Data

The historical data trend for FEG 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.

FEG Holdings Degree of Operating Leverage Chart

FEG Holdings Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial - - -2.05 2.56 51.25

FEG Holdings Semi-Annual Data
Mar18 Mar19 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 5.02 2.56 43.56 51.25 -0.78

Competitive Comparison of FEG Holdings's Degree of Operating Leverage

For the Engineering & Construction subindustry, FEG 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.


FEG Holdings's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, FEG Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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FEG Holdings Degree of Operating Leverage Calculation

FEG 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
=( 7.841 (Sep. 2024) / 15.691 (Sep. 2023) - 1 )/( 651.759 (Sep. 2024) / 397.648 (Sep. 2023) - 1 )
=-0.5003/0.639
=-0.78***

* 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.


FEG Holdings  (HKSE:01413) 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.


FEG Holdings Degree of Operating Leverage Related Terms

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FEG Holdings Business Description

Traded in Other Exchanges
N/A
Address
138 Queen's Road Central, Room 1801, 18th Floor, Wei Xiang Building, Hong Kong, HKG
FEG Holdings Corp Ltd is a foundation works contractor in Hong Kong. The foundation work of the company is mainly comprised of excavation and lateral support, as well as other related projects, including pile cap engineering, underground drainage engineering, and site leveling engineering. The group's operations are located in Hong Kong.
Executives
Arena Investment Management (singapore) Pte Ltd 2102 Investment manager
Arena Investors, Lp 2102 Investment manager
Arena Sg Spv I, Llc 2201 Interest of corporation controlled by you
Tgga, Llc 2101 Beneficial owner
Ubs Group Ag 2201 Interest of corporation controlled by you
Cheung Tung Tsun Billy 2101 Beneficial owner
Illuminati International Artworks Trading Limited 2101 Beneficial owner
Lam Sha Chau 2201 Interest of corporation controlled by you
Ma Wenkui
Lin Tongbing
Kwong Luen Prosperity Limited 2101 Beneficial owner
Kwan Chui Ling 2201 Interest of corporation controlled by you
Yip Kwong Cheung 2201 Interest of corporation controlled by you
Yang Zhenwei

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