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Grace Life tech Holdings (HKSE:02112) Degree of Operating Leverage : -0.56 (As of Dec. 2024)


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What is Grace Life tech Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Grace Life tech Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -0.56. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Grace Life tech Holdings's Degree of Operating Leverage or its related term are showing as below:

HKSE:02112's Degree of Operating Leverage is ranked better than
67.67% of 600 companies
in the Steel industry
Industry Median: 1.11 vs HKSE:02112: -0.56

Grace Life tech Holdings Degree of Operating Leverage Historical Data

The historical data trend for Grace Life tech Holdings'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.

Grace Life tech Holdings Degree of Operating Leverage Chart

Grace Life tech Holdings 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 0.69 -18.84 -0.15 2.85 -0.56

Grace Life tech Holdings 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 -0.15 -3.14 2.85 1.48 -0.56

Competitive Comparison of Grace Life tech Holdings's Degree of Operating Leverage

For the Steel subindustry, Grace Life tech Holdings'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.


Grace Life tech Holdings's Degree of Operating Leverage Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Grace Life tech Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Grace Life tech Holdings's Degree of Operating Leverage falls into.


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Grace Life tech Holdings Degree of Operating Leverage Calculation

Grace Life tech Holdings'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
=( -237.625 (Dec. 2024) / -185.678 (Dec. 2023) - 1 )/( 106.993 (Dec. 2024) / 212.856 (Dec. 2023) - 1 )
=0.2798/-0.4973
=-0.56***

* 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.


Grace Life tech Holdings  (HKSE:02112) 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.


Grace Life tech Holdings Degree of Operating Leverage Related Terms

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Grace Life tech Holdings Business Description

Traded in Other Exchanges
N/A
Address
Lot 22, D&E, Level 22, Menara Zenith Putra Square, MSC Kuantan, Kuantan, PHG, MYS, 25200
Grace Life tech Holdings Ltd is engaged in iron ore exploration, mining, crushing, and beneficiation as well as the sale of iron ore products in the form of iron ore concentrates and iron ore fines. The company's segments are the Iron ore mining and processing operation segment, Health product trade segment, Electronic products trade segments, and others. It generates the majority of its revenue from the Health product trade segment which includes the trading of health products. It has geographical markets in the PRC, Hong Kong, Malaysia, and others. It derives revenue from Hong Kong.
Executives
Haitong International Holdings Limited 2201 Interest of corporation controlled by you
Haitong International Securities Group Limited 2201 Interest of corporation controlled by you
Haitong Securities Co., Ltd. 2201 Interest of corporation controlled by you
Haitong International Finance Company Limited 2101 Beneficial owner
Si Chuan Sheng Chuan Jiu Ji Tuan Guo Ji Mao Yi You Xian Gong Si 2101 Beneficial owner
Ng Khing Yeu 2101 Beneficial owner
En Dian Shi Dai Ji Tuan You Xian Gong Si 2101 Beneficial owner
Cosmo Field Holdings Limited 2101 Beneficial owner
Li Yang 2201 Interest of corporation controlled by you
Hua Rong Hua Qiao Zi Chan Guan Li Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Li Yang 2201 Interest of corporation controlled by you
Ample Professional Limited 2106 Person having a security interest in shares
Zhong Guo Hua Rong Zi Chan Guan Li Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Haitong International Financial Products (singapore) Pte. Ltd. 2106 Person having a security interest in shares
Haitong International Securities Group (singapore) Pte. Ltd. 2201 Interest of corporation controlled by you

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