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Wenye Group Holdings (HKSE:01802) Degree of Operating Leverage : -0.62 (As of Dec. 2024)


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What is Wenye Group Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Wenye Group Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -0.62. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01802's Degree of Operating Leverage is ranked better than
73.1% of 1669 companies
in the Construction industry
Industry Median: 0.99 vs HKSE:01802: -0.62

Wenye Group Holdings Degree of Operating Leverage Historical Data

The historical data trend for Wenye Group 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.

Wenye Group Holdings Degree of Operating Leverage Chart

Wenye Group Holdings 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 1.75 172.20 1.29 0.94 -0.62

Wenye Group Holdings 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 1.29 1.35 0.94 0.38 -0.62

Competitive Comparison of Wenye Group Holdings's Degree of Operating Leverage

For the Engineering & Construction subindustry, Wenye Group 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.


Wenye Group Holdings's Degree of Operating Leverage Distribution in the Construction Industry

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

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


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Wenye Group Holdings Degree of Operating Leverage Calculation

Wenye Group 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
=( -79.48 (Dec. 2024) / -52.344 (Dec. 2023) - 1 )/( 14.439 (Dec. 2024) / 88.971 (Dec. 2023) - 1 )
=0.5184/-0.8377
=-0.62***

* 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.


Wenye Group Holdings  (HKSE:01802) 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.


Wenye Group Holdings Degree of Operating Leverage Related Terms

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Wenye Group Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 3083, Baoan South Road, Guiyuan Street, 4th Floor, Caiwuwei Development Building, Luohu District, Shenzhen, CHN
Wenye Group Holdings Ltd is an investment holding company. The company and its subsidiaries are engaged in the provision of interior and exterior building decoration and design services in the People's Republic of China. It mainly provides the construction and design services of indoor and outdoor building decoration for office buildings, public facilities, high-end start hotels, traffic hubs, commercial properties, residential properties, and curtain walls.
Executives
Mak Ho Fai
Kong Guojing 2101 Beneficial owner
Hk Monkey Asset Management Limited 2101 Beneficial owner
Shenzhen Xinhengfeng Asset Management Co., Ltd. 2101 Beneficial owner
Fanshaozhou Holdings Limited 2101 Beneficial owner
Li Pak San 2201 Interest of corporation controlled by you
Ocean Coalesce Investments Limited 2101 Beneficial owner
Fan Shaozhou 2101 Beneficial owner
Fan Shaozhou 2307 Founder of a discretionary trust who can infl
Antopex Limited 2306 Nominee for another person
Cmb Wing Lung (trustee) Limited 2301 Trustee
Modest Faith Limited 2201 Interest of corporation controlled by you
Wenye Elite Holdings Limited 2101 Beneficial owner

Wenye Group Holdings Headlines

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