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Hope Life International Holdings (HKSE:01683) Degree of Operating Leverage : 5.56 (As of Dec. 2024)


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What is Hope Life International Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Hope Life International Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 5.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01683's Degree of Operating Leverage is ranked worse than
81.1% of 1672 companies
in the Construction industry
Industry Median: 0.99 vs HKSE:01683: 5.56

Hope Life International Holdings Degree of Operating Leverage Historical Data

The historical data trend for Hope Life International 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.

Hope Life International Holdings Degree of Operating Leverage Chart

Hope Life International Holdings Annual Data
Trend Sep14 Sep15 Sep16 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.28 -1.81 0.21 0.88 5.56

Hope Life International Holdings Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 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 0.21 3.80 0.88 -16.07 5.56

Competitive Comparison of Hope Life International Holdings's Degree of Operating Leverage

For the Engineering & Construction subindustry, Hope Life International 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.


Hope Life International Holdings's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Hope Life International Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Hope Life International Holdings's Degree of Operating Leverage falls into.


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Hope Life International Holdings Degree of Operating Leverage Calculation

Hope Life International Holdings'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
=( -12.827 (Dec. 2024) / 13.088 (Dec. 2023) - 1 )/( 188.737 (Dec. 2024) / 293.151 (Dec. 2023) - 1 )
=-1.9801/-0.3562
=5.56***

* 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.


Hope Life International Holdings  (HKSE:01683) 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.


Hope Life International Holdings Degree of Operating Leverage Related Terms

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Hope Life International Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 100 Granville Road, Flat 1012, 10th Floor Harbour Crystal Centre, Kowloon, Hong Kong, HKG
Hope Life International Holdings Ltd is engaged in construction and ancillary services, which include design, fitting-out, decoration, alteration and addition, construction and other related businesses, and consumer goods business. Its segments include Construction and ancillary services engaged in design, fitting out, decoration, alteration and addition, construction and other related businesses; and Consumer goods business engaged in production and sales of wine products. The Consumer goods business derives majority of the revenue. The group's operations are located in Hong Kong, Macau and People's Republic of China with the majority of the revenue deriving from The PRC.
Executives
Lu Zhaowei 2101 Beneficial owner
Ample Platinum Enterprises Limited 2101 Beneficial owner
Hui Kee Fung 2201 Interest of corporation controlled by you
Soaring Holdings Limited 2201 Interest of corporation controlled by you
Shen Jie 2201 Interest of corporation controlled by you
Voice Chosen Investment Limited 2106 Person having a security interest in shares
Shen Yan 2201 Interest of corporation controlled by you
Niu Fang 2201 Interest of corporation controlled by you
State Energy Hk Limited 2101 Beneficial owner
He Yun 2106 Person having a security interest in shares
Shang Hai Zhong She Gu Quan Tou Zi Ji Jin You Xian Gong Si 2201 Interest of corporation controlled by you
Shang Hai Guo Ming Gu Quan Tou Zi Ji Jin Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Liu Quan Hui 2201 Interest of corporation controlled by you
Guo Neng Shang Ye Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Hu Zhang Cui 2202 Interest of your spouse

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