GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » China Shengmu Organic Milk Ltd (HKSE:01432) » Definitions » Degree of Operating Leverage

China Shengmu Organic Milk (HKSE:01432) Degree of Operating Leverage : 11.23 (As of Dec. 2024)


View and export this data going back to 2014. Start your Free Trial

What is China Shengmu Organic Milk Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. China Shengmu Organic Milk's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 11.23. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01432's Degree of Operating Leverage is ranked worse than
85.4% of 1843 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs HKSE:01432: 11.23

China Shengmu Organic Milk Degree of Operating Leverage Historical Data

The historical data trend for China Shengmu Organic Milk'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.

China Shengmu Organic Milk Degree of Operating Leverage Chart

China Shengmu Organic Milk 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 4.17 0.17 6.21 -16.43 11.23

China Shengmu Organic Milk 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 6.21 9.90 -16.43 -57.58 11.23

Competitive Comparison of China Shengmu Organic Milk's Degree of Operating Leverage

For the Farm Products subindustry, China Shengmu Organic Milk'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.


China Shengmu Organic Milk's Degree of Operating Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, China Shengmu Organic Milk's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where China Shengmu Organic Milk's Degree of Operating Leverage falls into.


;
;

China Shengmu Organic Milk Degree of Operating Leverage Calculation

China Shengmu Organic Milk'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
=( -16.899 (Dec. 2024) / 164.931 (Dec. 2023) - 1 )/( 3337.739 (Dec. 2024) / 3700.942 (Dec. 2023) - 1 )
=-1.1025/-0.0981
=11.23***

* 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.


China Shengmu Organic Milk  (HKSE:01432) 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.


China Shengmu Organic Milk Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of China Shengmu Organic Milk's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


China Shengmu Organic Milk Business Description

Traded in Other Exchanges
N/A
Address
Inner Mongolia Autonomous Region, Food Industry Park, Deng Kou County, Bayannur, CHN
China Shengmu Organic Milk Ltd is an organic dairy company in China. The company, through its subsidiaries, is engaged in the production and distribution of raw milk and dairy products. It operates in a single segment that is the Sale of raw milk. The company's income is mainly derived from its business activities in Mainland China.
Executives
Bpea Eqt Holdings Ab 2201 Interest of corporation controlled by you
Bei Jing Ke Gao Da Bei Nong Sheng Wu Ke Ji You Xian Gong Si 2201 Interest of corporation controlled by you
Bei Jing Da Bei Nong Ke Ji Ji Tuan Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Da Bei Nong Huan Qiu Tou Zi Xiang Gang You Xian Gong Si 2101 Beneficial owner
Bpea Private Equity Gp V, L.p. 2201 Interest of corporation controlled by you
Bpea Private Equity Gp V Limited 2201 Interest of corporation controlled by you
Bpea Private Equity Fund V, L.p. 2201 Interest of corporation controlled by you
Eqt Ab 2201 Interest of corporation controlled by you
Greenbelt Global Limited 2101 Beneficial owner
Salata Jean Eric 2201 Interest of corporation controlled by you
China Mengniu Dairy Company Limited 2201 Interest of corporation controlled by you
Shao Genhuo
The Baring Asia Private Equity Fund V, L.p. 2201 Interest of corporation controlled by you
Baring Private Equity Asia Gp V, L.p. 2201 Interest of corporation controlled by you
Baring Private Equity Asia Gp V Limited 2201 Interest of corporation controlled by you

China Shengmu Organic Milk Headlines

No Headlines