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HSC Resources Group (HKSE:01850) Degree of Operating Leverage : -1.48 (As of Oct. 2024)


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What is HSC Resources Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. HSC Resources Group's Degree of Operating Leverage for the quarter that ended in Oct. 2024 was -1.48. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01850's Degree of Operating Leverage is ranked better than
75.85% of 1002 companies
in the Business Services industry
Industry Median: 0.955 vs HKSE:01850: -1.48

HSC Resources Group Degree of Operating Leverage Historical Data

The historical data trend for HSC Resources 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.

HSC Resources Group Degree of Operating Leverage Chart

HSC Resources Group Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.08 -4.50 -11.14 -14.44 -0.84

HSC Resources Group Semi-Annual Data
Apr15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24 Oct24
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 2.89 -14.44 -3.52 -0.84 -1.48

Competitive Comparison of HSC Resources Group's Degree of Operating Leverage

For the Security & Protection Services subindustry, HSC Resources 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.


HSC Resources Group's Degree of Operating Leverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, HSC Resources Group's Degree of Operating Leverage distribution charts can be found below:

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


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HSC Resources Group Degree of Operating Leverage Calculation

HSC Resources Group's Degree of Operating Leverage for the quarter that ended in Oct. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 8.355 (Oct. 2024) / 10.142 (Oct. 2023) - 1 )/( 439.663 (Oct. 2024) / 392.899 (Oct. 2023) - 1 )
=-0.1762/0.119
=-1.48***

* 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.


HSC Resources Group  (HKSE:01850) 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.


HSC Resources Group Degree of Operating Leverage Related Terms

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HSC Resources Group Business Description

Traded in Other Exchanges
N/A
Address
9 Sheung Yuet Road, Unit 1603, 16th Floor, Tower 1, Enterprise Square, Kowloon Bay, Kowloon, Hong Kong, HKG
HSC Resources Group Ltd Formerly WINDMILL Group Ltd is an investment holding company. It is engaged in designing, supplying, and installation of fire safety systems for buildings under construction or re-development and maintenance and repair of fire safety systems for built premises. Geographically, the company derives revenue from Hong Kong and Macau. The company generates the majority of its revenue from design, supply, and installation services, followed by maintenance and repair services.
Executives
Xu Jia Qi 2101 Beneficial owner
Li Yin Tao 2101 Beneficial owner
Garden Wealth Investment Limited 2101 Beneficial owner
Li Minying 2101 Beneficial owner
Li Junheng 2101 Beneficial owner
Standard Chartered Plc 2201 Interest of corporation controlled by you
Low Tuck Kwong 2101 Beneficial owner
Wong Kai Lai 2101 Beneficial owner
Li Minying 2201 Interest of corporation controlled by you
Jiang Jianhui 2201 Interest of corporation controlled by you
Great Season Ventures Limited 2101 Beneficial owner

HSC Resources Group Headlines

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