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Shanghai Gench Education Group (HKSE:01525) Degree of Operating Leverage : -11.83 (As of Dec. 2024)


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What is Shanghai Gench Education Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Shanghai Gench Education Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -11.83. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Shanghai Gench Education Group's Degree of Operating Leverage or its related term are showing as below:

HKSE:01525's Degree of Operating Leverage is ranked better than
89.84% of 246 companies
in the Education industry
Industry Median: 0.86 vs HKSE:01525: -11.83

Shanghai Gench Education Group Degree of Operating Leverage Historical Data

The historical data trend for Shanghai Gench Education Group'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.

Shanghai Gench Education Group Degree of Operating Leverage Chart

Shanghai Gench Education Group 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 3.05 0.65 0.77 1.30 -11.83

Shanghai Gench Education Group Semi-Annual Data
Dec16 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 0.77 1.82 1.30 0.05 -11.83

Competitive Comparison of Shanghai Gench Education Group's Degree of Operating Leverage

For the Education & Training Services subindustry, Shanghai Gench Education Group'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.


Shanghai Gench Education Group's Degree of Operating Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Shanghai Gench Education Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Shanghai Gench Education Group's Degree of Operating Leverage falls into.


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Shanghai Gench Education Group Degree of Operating Leverage Calculation

Shanghai Gench Education Group'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
=( 347.481 (Dec. 2024) / 442.039 (Dec. 2023) - 1 )/( 1035.486 (Dec. 2024) / 1017.089 (Dec. 2023) - 1 )
=-0.2139/0.0181
=-11.83***

* 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.


Shanghai Gench Education Group  (HKSE:01525) 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.


Shanghai Gench Education Group Degree of Operating Leverage Related Terms

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Shanghai Gench Education Group Business Description

Traded in Other Exchanges
N/A
Address
No. 1111, Huchenghuan Road, Pudong New Area, Shanghai, CHN
Shanghai Gench Education Group Ltd and its subsidiaries are engaged in providing undergraduate education and junior college educations. The group generates its revenue from tuition fees, boarding fees, and other education-related services. Geographically, the company generates all of its revenue from the People's Republic of China.
Executives
Jong Yat Kit (in The Capacity As The Receiver) 2201 Interest of corporation controlled by you
So Man Chun (in The Capacity As The Receiver) 2201 Interest of corporation controlled by you
Everone (hong Kong) Company Limited 2101 Beneficial owner
Zhou Xingzeng
Zheng Xiangzhan
Ai Xin Limited 2101 Beneficial owner
Zhao Donghui 2201 Interest of corporation controlled by you
Changjiu Industrial Group Co., Ltd. 2201 Interest of corporation controlled by you
Fwin Limited 2101 Beneficial owner
Hangzhou Changqi Enterprise Management Consulting Partnership (limited Partnership) 2201 Interest of corporation controlled by you
Shanghai Jiuhao Enterprise Management Consulting Co., Ltd. 2201 Interest of corporation controlled by you
Ze Ren Limited 2101 Beneficial owner
Xia Men Guo Mao Jiao Yu Ji Tuan You Xian Gong Si 2101 Beneficial owner

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