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Prinx Chengshan Holdings (HKSE:01809) Degree of Operating Leverage : 2.01 (As of Dec. 2024)


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What is Prinx Chengshan Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Prinx Chengshan Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 2.01. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01809's Degree of Operating Leverage is ranked worse than
63.37% of 1286 companies
in the Vehicles & Parts industry
Industry Median: 1.005 vs HKSE:01809: 2.01

Prinx Chengshan Holdings Degree of Operating Leverage Historical Data

The historical data trend for Prinx Chengshan 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.

Prinx Chengshan Holdings Degree of Operating Leverage Chart

Prinx Chengshan Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.75 -2.47 -28.57 9.37 2.01

Prinx Chengshan Holdings Semi-Annual Data
Dec15 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 Premium Member Only -28.57 -173.84 9.37 5.18 2.01

Competitive Comparison of Prinx Chengshan Holdings's Degree of Operating Leverage

For the Auto Parts subindustry, Prinx Chengshan 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.


Prinx Chengshan Holdings's Degree of Operating Leverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Prinx Chengshan Holdings's Degree of Operating Leverage distribution charts can be found below:

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


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Prinx Chengshan Holdings Degree of Operating Leverage Calculation

Prinx Chengshan 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
=( 1545.525 (Dec. 2024) / 1339.274 (Dec. 2023) - 1 )/( 11716.51 (Dec. 2024) / 10881.988 (Dec. 2023) - 1 )
=0.154/0.0767
=2.01***

* 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.


Prinx Chengshan Holdings  (HKSE:01809) 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.


Prinx Chengshan Holdings Degree of Operating Leverage Related Terms

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


Prinx Chengshan Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 98 Nanshan North Road, Shandong Province, Rongcheng, CHN
Prinx Chengshan Holdings Ltd is a tire manufacturer. It sells its products under the brand name Prinx, Chengshan, Austone, and Fortune. The company has has two segments as follows: Mainland China and Hong Kong as one segment for trading of raw material related to tire products, manufacturing and selling tire products; and Overseas regions as the other segment for manufacturing and selling tire products. It derives maximum revenue from Domestic Market.
Executives
Zhong Guo Zhong Xing Qi Che Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Li Xiuxiang 2201 Interest of corporation controlled by you
Che Baozhen 2101 Beneficial owner
Che Hongzhi
Bi Wenjing 2202 Interest of your spouse
Shang Hai Cheng Zhan Xin Xi Ke Ji Zhong Xin 2201 Interest of corporation controlled by you
Bei Jing Zhong Ming Xin Tou Zi You Xian Gong Si 2201 Interest of corporation controlled by you
Cheng Shan Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Li Xiuxiang 2201 Interest of corporation controlled by you
Che Hongzhi 2202 Interest of your spouse
Che Baozhen 2201 Interest of corporation controlled by you
Red Avenue Investment Group Limited 2201 Interest of corporation controlled by you
Sino Legend Holding Group Limited 2101 Beneficial owner
Zhang Ning 2201 Interest of corporation controlled by you
Hua Qi Zhong Guo Hua Gong You Xian Gong Si 2201 Interest of corporation controlled by you

Prinx Chengshan Holdings Headlines

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