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China Kepei Education Group (HKSE:01890) Degree of Operating Leverage : 0.29 (As of Feb. 2025)


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What is China Kepei Education Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. China Kepei Education Group's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 0.29. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01890's Degree of Operating Leverage is ranked better than
60.41% of 245 companies
in the Education industry
Industry Median: 0.84 vs HKSE:01890: 0.29

China Kepei Education Group Degree of Operating Leverage Historical Data

The historical data trend for China Kepei Education 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.

China Kepei Education Group Degree of Operating Leverage Chart

China Kepei Education Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only 1.35 1.15 0.94 1.64 0.90

China Kepei Education Group Semi-Annual Data
Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25
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 0.56 1.64 2.80 0.90 0.29

Competitive Comparison of China Kepei Education Group's Degree of Operating Leverage

For the Education & Training Services subindustry, China Kepei Education 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.


China Kepei Education Group's Degree of Operating Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, China Kepei Education Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where China Kepei Education Group's Degree of Operating Leverage falls into.


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China Kepei Education Group Degree of Operating Leverage Calculation

China Kepei Education Group's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 964.016 (Feb. 2025) / 941.304 (Feb. 2024) - 1 )/( 1877.806 (Feb. 2025) / 1733.868 (Feb. 2024) - 1 )
=0.0241/0.083
=0.29***

* 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.


China Kepei Education Group  (HKSE:01890) 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.


China Kepei Education Group Degree of Operating Leverage Related Terms

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China Kepei Education Group Business Description

Traded in Other Exchanges
Address
Qifu Road, Gaoyao District, Guangdong Province, Zhaoqing, CHN
China Kepei Education Group Ltd is a provider of private vocational education services in China focusing on profession-oriented and vocational education. It earns revenues from tuition fees, higher education program, Secondary vocational education, Boarding fees and other educational services. The company-operated schools include Guangdong Polytechnic College, an undergraduate-level higher education institution; and Zhaoqing Science and Technology Secondary Vocational School both located in Zhaoqing, Guangdong Province. The Company operates and Generates revenue from China.
Executives
Ye Nianqiao 2307 Founder of a discretionary trust who can infl
Ye Xun 2101 Beneficial owner
Cantrust (far East) Limited 2301 Trustee
Qiaoge Company Limited 2101 Beneficial owner
Ye Liya Limited 2201 Interest of corporation controlled by you
Shu Liping 2202 Interest of your spouse
Huanleye Limited 2201 Interest of corporation controlled by you
Weixin Company Limited 2101 Beneficial owner
Ye Nianjiu 2307 Founder of a discretionary trust who can infl
Ye Kasi Limited 2201 Interest of corporation controlled by you
Chenye Company Limited 2101 Beneficial owner
Shuye Company Limited 2101 Beneficial owner
Shu Feiya Limited 2201 Interest of corporation controlled by you
Areo Holdings Limited 2201 Interest of corporation controlled by you
Skyline Miracle Limited 2101 Beneficial owner

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