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Scholar Education Group (HKSE:01769) Degree of Operating Leverage : 1.14 (As of Dec. 2024)


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What is Scholar Education Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Scholar Education Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.14. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01769's Degree of Operating Leverage is ranked worse than
56.97% of 244 companies
in the Education industry
Industry Median: 0.9 vs HKSE:01769: 1.14

Scholar Education Group Degree of Operating Leverage Historical Data

The historical data trend for Scholar 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.

Scholar Education Group Degree of Operating Leverage Chart

Scholar Education Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only -2.49 -3.99 -0.52 3.72 1.14

Scholar Education Group Semi-Annual Data
Dec16 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 -0.52 15.03 3.72 0.36 1.14

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

For the Education & Training Services subindustry, Scholar 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.


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

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

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


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Scholar Education Group Degree of Operating Leverage Calculation

Scholar 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
=( 204.235 (Dec. 2024) / 134.132 (Dec. 2023) - 1 )/( 910.006 (Dec. 2024) / 624.126 (Dec. 2023) - 1 )
=0.5226/0.458
=1.14***

* 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.


Scholar Education Group  (HKSE:01769) 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.


Scholar Education Group Degree of Operating Leverage Related Terms

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Scholar Education Group Business Description

Traded in Other Exchanges
N/A
Address
29 Youyi Road, Nanhu Street, Rooms 401-410, 4th Floor, Yunfeng Garden, Jianan Community, Luohu District, Shenzhen, CHN, 518049
Scholar Education Group provides private education services, educational tour business, and international courses. Its programme is comprised of liberal education courses in respect of art, sports, painting, performance art, calligraphy, scientific literacy, Le Xue and Guo Xue, logic training and Miaowei international literacy. In addition, the group provides after-school care services, by which students can receive its quality after-school care services from professional teachers. Its segments include Non-academic literary programme and others; and Tutoring programme. The group's principal market is in Guangdong Province of the PRC from where majority of the revenue is derived.
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Chen Qiyuan 2201 Interest of corporation controlled by you
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Cre Alliance Fund I L.p. 2201 Interest of corporation controlled by you
Chen Hongyu 2101 Beneficial owner
Cre Alliance Fund I Lp Limited 2201 Interest of corporation controlled by you
Cre Glory Company Limited 2101 Beneficial owner

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