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Most Kwai Chung (HKSE:01716) Degree of Operating Leverage : -2.05 (As of Sep. 2024)


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What is Most Kwai Chung Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Most Kwai Chung's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was -2.05. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Most Kwai Chung's Degree of Operating Leverage or its related term are showing as below:

HKSE:01716's Degree of Operating Leverage is ranked better than
73.56% of 987 companies
in the Media - Diversified industry
Industry Median: 1.18 vs HKSE:01716: -2.05

Most Kwai Chung Degree of Operating Leverage Historical Data

The historical data trend for Most Kwai Chung'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.

Most Kwai Chung Degree of Operating Leverage Chart

Most Kwai Chung Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.70 1.45 -19.26 -0.33 -1.41

Most Kwai Chung Semi-Annual Data
Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 58.52 -0.33 -2.28 -1.41 -2.05

Competitive Comparison of Most Kwai Chung's Degree of Operating Leverage

For the Advertising Agencies subindustry, Most Kwai Chung'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.


Most Kwai Chung's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Most Kwai Chung's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Most Kwai Chung's Degree of Operating Leverage falls into.


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Most Kwai Chung Degree of Operating Leverage Calculation

Most Kwai Chung'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
=( -2.557 (Sep. 2024) / -17.927 (Sep. 2023) - 1 )/( 68.275 (Sep. 2024) / 48.15 (Sep. 2023) - 1 )
=-0.8574/0.418
=-2.05***

* 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.


Most Kwai Chung  (HKSE:01716) 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.


Most Kwai Chung Degree of Operating Leverage Related Terms

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


Most Kwai Chung Business Description

Traded in Other Exchanges
N/A
Address
11-13 Tai Yuen Street, Unit 8, 16thFloor, Block B, Tung Chun Industrial Building, Kwai Chung, New Territories, Hong Kong, HKG
Most Kwai Chung Ltd is engaged in the provision of digital media services, print media services and other media services which include events organization and artistes management. Its operating segment includes Digital media services, Print media services, and Other media services. Digital media services is engaged in the provision of one-stop advertising solution packages. The Print media services represent advertorial production and advertisement placement services and sale of publications including books and magazines. It generates maximum revenue from the Digital media services segment. Geographically, it operates only in Hong Kong.
Executives
Leung Hoi Yui 2501 Other
Lui Yu Kin 2101 Beneficial owner
Chan Christine Kar-hey
Chan Mavis Pak Ling
Blackpaper Limited 2401 A concert party to an agreement to buy shares
Chui Cheung Lam 2501 Other
Wong Kar Wai 2501 Other
Yuen Kam Shing 2501 Other
Iu Kar Ho 2401 A concert party to an agreement to buy shares
Luk Ka Chun 2401 A concert party to an agreement to buy shares

Most Kwai Chung Headlines

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