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Moon (HKSE:01723) Degree of Operating Leverage : 5.11 (As of Sep. 2024)


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What is Moon Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Moon's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 5.11. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01723's Degree of Operating Leverage is ranked worse than
74.11% of 367 companies
in the Telecommunication Services industry
Industry Median: 1.5 vs HKSE:01723: 5.11

Moon Degree of Operating Leverage Historical Data

The historical data trend for Moon'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.

Moon Degree of Operating Leverage Chart

Moon Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only 19.52 1.86 2.39 -6.79 11.79

Moon Semi-Annual Data
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 6.43 -6.79 -1.25 11.79 5.11

Competitive Comparison of Moon's Degree of Operating Leverage

For the Telecom Services subindustry, Moon'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.


Moon's Degree of Operating Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Moon's Degree of Operating Leverage distribution charts can be found below:

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


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Moon Degree of Operating Leverage Calculation

Moon'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
=( 5.411 (Sep. 2024) / 10.829 (Sep. 2023) - 1 )/( 221.921 (Sep. 2024) / 246.012 (Sep. 2023) - 1 )
=-0.5003/-0.0979
=5.11***

* 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.


Moon  (HKSE:01723) 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.


Moon Degree of Operating Leverage Related Terms

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


Moon Business Description

Traded in Other Exchanges
N/A
Address
23 Wing Wo Street, Sheung Wan, 24th Floor, Chun Wo Commercial Centre, Hong Kong, HKG
HK Asia Holdings Ltd is principally engaged in wholesale and retail sales of the Pre-paid Products such as SIM Cards and Top-up Vouchers. The Group currently has one operating segment which is revenue from sale of the Pre-paid Products i.e. SIM Cards and top-up vouchers. Geographically, it operates only in Hong Kong.
Executives
210k Capital, Lp 2101 Beneficial owner
Bailey David Forrest 2201 Interest of corporation controlled by you
Evans Tyler Matthew 2201 Interest of corporation controlled by you
Mateer Samuel Coyn 2201 Interest of corporation controlled by you
Utxo Management Gp, Llc 2201 Interest of corporation controlled by you
Fang Jason Kin Hoi 2201 Interest of corporation controlled by you
Sit Hon 2201 Interest of corporation controlled by you
Sora Investment Management Limited 2102 Investment manager
Sora Valkyrie Limited 2101 Beneficial owner
Sora Ventures 2201 Interest of corporation controlled by you
Allied Top Investments Limited 2101 Beneficial owner
Top Legend Spc Acting For And On Behalf Of One Of Its Segregated Portfolios Aces Sp 2101 Beneficial owner
Tsang Karen Ka Yan 2201 Interest of corporation controlled by you
Chan Hung Kai 2101 Beneficial owner
Siu Muk Lung 2101 Beneficial owner

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