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Top Education Group (HKSE:01752) Degree of Operating Leverage : -3.67 (As of Dec. 2024)


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What is Top Education Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Top Education Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -3.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01752's Degree of Operating Leverage is ranked better than
82.11% of 246 companies
in the Education industry
Industry Median: 0.86 vs HKSE:01752: -3.67

Top Education Group Degree of Operating Leverage Historical Data

The historical data trend for Top 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.

Top Education Group Degree of Operating Leverage Chart

Top Education Group Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.90 7.78 5.69 -11.21 4.52

Top Education Group Semi-Annual Data
Jun15 Jun16 Jun17 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 Premium Member Only Premium Member Only 8.83 -11.21 -117.75 4.52 -3.67

Competitive Comparison of Top Education Group's Degree of Operating Leverage

For the Education & Training Services subindustry, Top 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.


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

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

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


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Top Education Group Degree of Operating Leverage Calculation

Top 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
=( 20.942 (Dec. 2024) / 21.827 (Dec. 2023) - 1 )/( 158.171 (Dec. 2024) / 156.442 (Dec. 2023) - 1 )
=-0.0405/0.0111
=-3.67***

* 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.


Top Education Group  (HKSE:01752) 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.


Top Education Group Degree of Operating Leverage Related Terms

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Top Education Group Business Description

Traded in Other Exchanges
N/A
Address
1 Central Avenue, Suite 1, Biomedical Building, Australian Technology Park, Eveleigh, Sydney, NSW, AUS, 2015
Top Education Group Ltd is engaged in the provision of private higher education services and English language courses in Australia. It has campuses located in various cities across Australia, namely Sydney, Perth, and Hobart, and offers tertiary education within the three core schools of Business, Law, and Information Technology.
Executives
Hang Jian Ying 2201 Interest of corporation controlled by you
Lu Qiu Wen 2201 Interest of corporation controlled by you
Yang Qingquan 2101 Beneficial owner
Lee Amen Kwai Ping 2101 Beneficial owner
Chen Shuling 2202 Interest of your spouse
Zhao Long Ji Tuan Kong Gu You Xian Gong Si 2101 Beneficial owner
Huang Xing Shi 2103 Interests held jointly with another person
Lam Josephine Kam Shan 2202 Interest of your spouse
Tristar United Investment Limited 2103 Interests held jointly with another person
Zhu Minshen 2103 Interests held jointly with another person
Liu Zhuo 2202 Interest of your spouse
Wang Xin 2103 Interests held jointly with another person
Xin Jiang Guo Li Min Sheng Gu Quan Tou Zi You Xian Gong Si 2101 Beneficial owner
Pricewaterhousecoopers
Loyal Creation Investment Limited 2101 Beneficial owner

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