GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Kafelaku Coffee Holding Ltd (HKSE:01869) » Definitions » Degree of Operating Leverage

Kafelaku Coffee Holding (HKSE:01869) Degree of Operating Leverage : 16.56 (As of Dec. 2024)


View and export this data going back to 2016. Start your Free Trial

What is Kafelaku Coffee Holding Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Kafelaku Coffee Holding's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 16.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Kafelaku Coffee Holding's Degree of Operating Leverage or its related term are showing as below:

HKSE:01869's Degree of Operating Leverage is ranked worse than
87.5% of 344 companies
in the Restaurants industry
Industry Median: 1.24 vs HKSE:01869: 16.56

Kafelaku Coffee Holding Degree of Operating Leverage Historical Data

The historical data trend for Kafelaku Coffee Holding'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.

Kafelaku Coffee Holding Degree of Operating Leverage Chart

Kafelaku Coffee Holding 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 0.87 13.91 1.18 -4.48 16.56

Kafelaku Coffee Holding 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 1.18 2.98 -4.48 -35.89 16.56

Competitive Comparison of Kafelaku Coffee Holding's Degree of Operating Leverage

For the Restaurants subindustry, Kafelaku Coffee Holding'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.


Kafelaku Coffee Holding's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Kafelaku Coffee Holding's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Kafelaku Coffee Holding's Degree of Operating Leverage falls into.


;
;

Kafelaku Coffee Holding Degree of Operating Leverage Calculation

Kafelaku Coffee Holding'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
=( -39.945 (Dec. 2024) / 15.311 (Dec. 2023) - 1 )/( 139.62 (Dec. 2024) / 178.523 (Dec. 2023) - 1 )
=-3.6089/-0.2179
=16.56***

* 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.


Kafelaku Coffee Holding  (HKSE:01869) 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.


Kafelaku Coffee Holding Degree of Operating Leverage Related Terms

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


Kafelaku Coffee Holding Business Description

Traded in Other Exchanges
N/A
Address
178 Gloucester Road, 26th Floor, Chinachem Century Tower, Wan Chai, Hong Kong, HKG
Kafelaku Coffee Holding Ltd is an investment holding company. Along with its subsidiaries, it is principally engaged in providing food and beverage services in Hong Kong and the PRC, including Chinese catering services and coffee services. The group operates franchised coffee shops under the brand name Kafelaku Coffee and full-service Chinese restaurants under the brand Li Bao House and Star of Canton. Its reportable operating segments are Food catering and Beverage. A majority of its revenue is generated from the Food catering segment, which represents restaurant operations delivering Cantonese cuisine, Chinese banquets, and dining services. The Beverage segment represents the group's coffee operations. Geographically, it derives maximum revenue from the People's Republic of China (PRC).
Executives
Liang Naiming 2201 Interest of corporation controlled by you
Kafelaku Coffee Industrial Limited 2101 Beneficial owner
Lau Chi Yuen Joseph 2201 Interest of corporation controlled by you
Tan Qingxuan 2101 Beneficial owner
Cui Zhiqiang 2202 Interest of your spouse
Jl Investments Capital Limited 2101 Beneficial owner
Lu Huaying 2201 Interest of corporation controlled by you
Wonder Peak Holding Limited 2301 Trustee
Dong Tai Shi Guo You Zi Chan Guan Li Zhong Xin 2201 Interest of corporation controlled by you
Shang Rao Shi Guo You Zi Chan Jing Ying Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Shang Rao Tou Zi Kong Gu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Dong Tai Yun Qi Yi Hao Chan Ye Ji Jin He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Qing Dao Qi Jin Zi Chan Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Dong Tai Shi Guo Lian Kong Gu You Xian Gong Si 2201 Interest of corporation controlled by you
Dong Tai Shi Cheng Shi Jian She Tou Zi Fa Zhan Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you

Kafelaku Coffee Holding Headlines

No Headlines