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Zhaojin Mining Industry Co (HKSE:01818) Degree of Operating Leverage : 1.58 (As of Dec. 2024)


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What is Zhaojin Mining Industry Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Zhaojin Mining Industry Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.58. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Zhaojin Mining Industry Co's Degree of Operating Leverage or its related term are showing as below:

HKSE:01818's Degree of Operating Leverage is ranked worse than
57.58% of 726 companies
in the Metals & Mining industry
Industry Median: 0.92 vs HKSE:01818: 1.58

Zhaojin Mining Industry Co Degree of Operating Leverage Historical Data

The historical data trend for Zhaojin Mining Industry Co'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.

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Zhaojin Mining Industry Co Degree of Operating Leverage Chart

Zhaojin Mining Industry Co 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 2.52 7.45 5.68 7.35 1.58

Zhaojin Mining Industry Co Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 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 Premium Member Only Premium Member Only 5.68 7.26 7.35 2.42 1.58

Competitive Comparison of Zhaojin Mining Industry Co's Degree of Operating Leverage

For the Gold subindustry, Zhaojin Mining Industry Co'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.


Zhaojin Mining Industry Co's Degree of Operating Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Zhaojin Mining Industry Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Zhaojin Mining Industry Co's Degree of Operating Leverage falls into.


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Zhaojin Mining Industry Co Degree of Operating Leverage Calculation

Zhaojin Mining Industry Co'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
=( 2858.892 (Dec. 2024) / 1860.979 (Dec. 2023) - 1 )/( 12332.338 (Dec. 2024) / 9213.576 (Dec. 2023) - 1 )
=0.5362/0.3385
=1.58***

* 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.


Zhaojin Mining Industry Co  (HKSE:01818) 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.


Zhaojin Mining Industry Co Degree of Operating Leverage Related Terms

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


Zhaojin Mining Industry Co Business Description

Traded in Other Exchanges
Address
No. 118 Wenquan Road, Shandong Province, Zhaoyuan, CHN, 265400
Zhaojin Mining Industry Co Ltd is engaged in the mining, processing, smelting, and sale of gold and silver products. The exploration, mining, ore processing, smelting, and sale of gold and other metallic products is a large integrated mining enterprise specializing in the production of gold. It produces two kinds of gold products, Au9999 and Au9995 gold bullion, under the brand Zhaojin. The company has three reportable operating segments: Gold operations, Copper operations, and Others. A majority of its revenue is generated from the Gold operations segment, which consists of gold mining and smelting operations. The copper operations segment consists of copper mining and smelting operations. Geographically, it derives maximum revenue from Mainland China and the rest from overseas markets.
Executives
Van Eck Associates Corporation 2102 Investment manager
Shan Dong Zhao Jin Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Zi Jin Kuang Ye Ji Tuan Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Jin Shan Xiang Gang Guo Ji Kuang Ye You Xian Gong Si 2101 Beneficial owner
Fosun International Holdings Ltd. 2201 Interest of corporation controlled by you
Fosun International Limited 2201 Interest of corporation controlled by you
Guo Guangchang 2201 Interest of corporation controlled by you
Shanghai Fosun Industrial Investment Co., Ltd. 2201 Interest of corporation controlled by you
Shang Hai Yu Yuan Lv You Shang Cheng Ji Tuan Gu Fen You Xian Gong Si 2101 Beneficial owner
Vaneck Etf - Vaneck Gold Miners Etf 2101 Beneficial owner

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