GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Pangaea Connectivity Technology Ltd (HKSE:01473) » Definitions » Degree of Operating Leverage

Pangaea Connectivity Technology (HKSE:01473) Degree of Operating Leverage : -3.69 (As of Sep. 2024)


View and export this data going back to 2021. Start your Free Trial

What is Pangaea Connectivity Technology Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Pangaea Connectivity Technology's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -3.69. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Pangaea Connectivity Technology's Degree of Operating Leverage or its related term are showing as below:

HKSE:01473's Degree of Operating Leverage is ranked better than
79.34% of 2411 companies
in the Hardware industry
Industry Median: 1 vs HKSE:01473: -3.69

Pangaea Connectivity Technology Degree of Operating Leverage Historical Data

The historical data trend for Pangaea Connectivity Technology'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.

Pangaea Connectivity Technology Degree of Operating Leverage Chart

Pangaea Connectivity Technology Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial - - 3.24 61.23 -2.24

Pangaea Connectivity Technology 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 1.93 61.23 16.85 -2.24 -3.69

Competitive Comparison of Pangaea Connectivity Technology's Degree of Operating Leverage

For the Communication Equipment subindustry, Pangaea Connectivity Technology'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.


Pangaea Connectivity Technology's Degree of Operating Leverage Distribution in the Hardware Industry

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

* The bar in red indicates where Pangaea Connectivity Technology's Degree of Operating Leverage falls into.


;
;

Pangaea Connectivity Technology Degree of Operating Leverage Calculation

Pangaea Connectivity Technology'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
=( 29.216 (Sep. 2024) / -22.872 (Sep. 2023) - 1 )/( 1804.524 (Sep. 2024) / 1116.305 (Sep. 2023) - 1 )
=-2.2774/0.6165
=-3.69***

* 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.


Pangaea Connectivity Technology  (HKSE:01473) 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.


Pangaea Connectivity Technology Degree of Operating Leverage Related Terms

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


Pangaea Connectivity Technology Business Description

Traded in Other Exchanges
N/A
Address
181 Johnston Road, Rooms 902-6, 9th Floor, Tai Yau Building, Wanchai, Hong Kong, HKG
Pangaea Connectivity Technology Ltd is involved in the telecom and datacom connectivity industry. It offers connectivity products covering wireless microwave networks, optical networks from access to metro to regional and long haul, and data center and commercial networks for cellular, fixed, personal and private usage. The company is principally engaged in import and export of connectivity products which are used in telecom and datacom connectivity industry for different end applications such as telecom infrastructure, data centres, high performance computing, IoT, and network connectivity products.
Executives
Generous Horizon Limited 2101 Beneficial owner
Fung Yui Kong 2201 Interest of corporation controlled by you
Lam Esther W. 2202 Interest of your spouse
Poon Ka Ho Stanley 2101 Beneficial owner
Generous Team Limited

Pangaea Connectivity Technology Headlines

No Headlines