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Sinohope Technology Holdings (HKSE:01611) Degree of Operating Leverage : 2.75 (As of Sep. 2024)


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What is Sinohope Technology Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Sinohope Technology Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 2.75. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01611's Degree of Operating Leverage is ranked worse than
76.53% of 622 companies
in the Capital Markets industry
Industry Median: 0.755 vs HKSE:01611: 2.75

Sinohope Technology Holdings Degree of Operating Leverage Historical Data

The historical data trend for Sinohope Technology 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.

Sinohope Technology Holdings Degree of Operating Leverage Chart

Sinohope Technology Holdings Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.35 -11.13 -0.14 -0.74 2.75

Sinohope Technology Holdings Semi-Annual Data
Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25
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 -0.38 -0.74 1.27 2.75 -

Competitive Comparison of Sinohope Technology Holdings's Degree of Operating Leverage

For the Capital Markets subindustry, Sinohope Technology 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.


Sinohope Technology Holdings's Degree of Operating Leverage Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Sinohope Technology Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Sinohope Technology Holdings Degree of Operating Leverage Calculation

Sinohope Technology 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
=( 61.134 (Sep. 2024) / -267.113 (Sep. 2023) - 1 )/( 1569.387 (Sep. 2024) / 2833.569 (Sep. 2023) - 1 )
=-1.2289/-0.4461
=2.75***

* 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.


Sinohope Technology Holdings  (HKSE:01611) 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.


Sinohope Technology Holdings Degree of Operating Leverage Related Terms

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Sinohope Technology Holdings Business Description

Traded in Other Exchanges
N/A
Address
100 Queen\'s Road Central, 7th Floor, Unit 702-3, Central, Hong Kong, HKG
Sinohope Technology Holdings Ltd is an investment holding company. Along with its subsidiaries, the company is principally engaged in the provision of technology solution services, and a variety of services in the virtual asset ecosystem, such as asset management, trust and custodian business, and cryptocurrency trading. Its product and service offerings include; MPC wallet, Full custody wallet, Web3 solutions, and others. The company principally operates in one business segment, which is the virtual assets ecosystem. A majority of its revenue is derived from its cryptocurrency trading operations. Geographically, the company's operations are mainly located in the People's Republic of China including the Hong Kong Special Administrative Region.
Executives
Du Jun 2101 Beneficial owner
Avenir View Limited 2201 Interest of corporation controlled by you
Avenir Investment Holdings Limited 2201 Interest of corporation controlled by you
Avenir Investment Limited 2101 Beneficial owner
Li Lin 2201 Interest of corporation controlled by you
Zhong Gengfa 2101 Beneficial owner
On Chain Technology Limited 2101 Beneficial owner
Avenir Capital Inc. 2101 Beneficial owner
Avenir Holdings Limited 2101 Beneficial owner
Snp China Enterprises Limited 2201 Interest of corporation controlled by you
Hsg Holding Limited 2201 Interest of corporation controlled by you
Hongshan Capital Venture Fund Iv, L.p. 2201 Interest of corporation controlled by you
Hsg Cv Iv Holdco, Ltd. 2101 Beneficial owner
Hsg Cv Iv Senior Holdco, Ltd. 2201 Interest of corporation controlled by you
Hsg Venture Iv Management, L.p. 2201 Interest of corporation controlled by you

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