What is J&T Global Express Degree of Operating Leverage?
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
J&T Global Express's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -8.09. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for J&T Global Express's Degree of Operating Leverage or its related term are showing as below:
HKSE:01519's Degree of Operating Leverage is ranked better than 87.63% of 978
companies
in the Transportation industry
Industry Median: 0.88
vs HKSE:01519: -8.09
J&T Global Express Degree of Operating Leverage Historical Data
The historical data trend for J&T Global Express'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.
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J&T Global Express Degree of Operating Leverage Chart
Competitive Comparison of J&T Global Express's Degree of Operating Leverage
For the Integrated Freight & Logistics subindustry, J&T Global Express'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.
J&T Global Express's Degree of Operating Leverage Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, J&T Global Express's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where J&T Global Express's Degree of Operating Leverage falls into.
* 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.
J&T Global Express (HKSE:01519) 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.
J&T Global Express Degree of Operating Leverage Related Terms
Thank you for viewing the detailed overview of J&T Global Express's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.
J&T Express provides express delivery in 13 countries, with a number one position in Southeast Asia and a number five position in China by parcel volume share in 2023 and a growing footprint in Latin America and the Middle East. As of Dec. 31, 2023, it had full network coverage across Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, and Singapore, over 99% of geographical coverage in China, and over 95% coverage in Saudi Arabia, the UAE, Mexico, Brazil, and Egypt. J&T also had approximately 8,500 network partners, 19,600 pickup and delivery outlets, and operates 237 sorting centers, more than 3,900 line-haul routes and over 9,600 line-haul vehicles, including more than 5,100 self-owned line-haul vehicles.
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