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Redsun Services Group (HKSE:01971) Degree of Operating Leverage : 1.67 (As of Dec. 2024)


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What is Redsun Services Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Redsun Services Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:01971's Degree of Operating Leverage is ranked worse than
63.05% of 1697 companies
in the Real Estate industry
Industry Median: 0.92 vs HKSE:01971: 1.67

Redsun Services Group Degree of Operating Leverage Historical Data

The historical data trend for Redsun Services 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.

Redsun Services Group Degree of Operating Leverage Chart

Redsun Services Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.75 1.50 3.30 12.43 1.67

Redsun Services Group Semi-Annual Data
Dec17 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 3.30 3.88 12.43 6.94 1.67

Competitive Comparison of Redsun Services Group's Degree of Operating Leverage

For the Real Estate Services subindustry, Redsun Services 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.


Redsun Services Group's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Redsun Services Group's Degree of Operating Leverage distribution charts can be found below:

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


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Redsun Services Group Degree of Operating Leverage Calculation

Redsun Services Group'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
=( 40.723 (Dec. 2024) / 45.082 (Dec. 2023) - 1 )/( 1096.155 (Dec. 2024) / 1163.38 (Dec. 2023) - 1 )
=-0.0967/-0.0578
=1.67***

* 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.


Redsun Services Group  (HKSE:01971) 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.


Redsun Services Group Degree of Operating Leverage Related Terms

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Redsun Services Group Business Description

Traded in Other Exchanges
N/A
Address
No. 9 Daqiao North Road, 25th Floor, Hong Yang Building, Jiangsu Province, Nanjing, CHN
Redsun Services Group Ltd is a comprehensive community service provider in Jiangsu province, China. The group provides a wide range of property management services to property owners, residents, and tenants. It also provides value-added services to non-property owners, property developers, and other property management companies and community value-added services to residential property owners and residents. Its portfolio of managed properties comprises residential, commercial, and other properties.
Executives
As Holdings Gp Llc 2106 Person having a security interest in shares
Union Lead Capital Limited 2106 Person having a security interest in shares
Cp6 Hold Co 2 Limited 2106 Person having a security interest in shares
Ares Ssg Capital Partners Vi, L.p. 2106 Person having a security interest in shares
Ares Ssg Capital Partners Vi Gp, Ltd. 2106 Person having a security interest in shares
Investment Opportunities V Pte. Limited 2106 Person having a security interest in shares
Fuchs Benjamin Aaron 2201 Interest of corporation controlled by you
Bfam Partners (cayman) Limited 2201 Interest of corporation controlled by you
Tj Capital Investors, Llc 2106 Person having a security interest in shares
Ssg Capital Partners V, L.p. 2106 Person having a security interest in shares
Ssg Capital Partners V Gp, Ltd. 2106 Person having a security interest in shares
Ressler Antony Peter 2106 Person having a security interest in shares
Cp5 Hold Co 2 Limited 2106 Person having a security interest in shares
As Holdings Lp Ltd. 2106 Person having a security interest in shares
Ares Partners Holdco Llc 2106 Person having a security interest in shares

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