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EC Healthcare (HKSE:02138) Degree of Operating Leverage : 21.78 (As of Sep. 2024)


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What is EC Healthcare Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. EC Healthcare's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 21.78. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for EC Healthcare's Degree of Operating Leverage or its related term are showing as below:

HKSE:02138's Degree of Operating Leverage is ranked worse than
92.18% of 639 companies
in the Healthcare Providers & Services industry
Industry Median: 0.68 vs HKSE:02138: 21.78

EC Healthcare Degree of Operating Leverage Historical Data

The historical data trend for EC Healthcare'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.

EC Healthcare Degree of Operating Leverage Chart

EC Healthcare Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.16 -3.47 0.69 -1.41 -4.74

EC Healthcare Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 -1.74 -1.41 -2.64 -4.74 21.78

Competitive Comparison of EC Healthcare's Degree of Operating Leverage

For the Medical Care Facilities subindustry, EC Healthcare'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.


EC Healthcare's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, EC Healthcare's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where EC Healthcare's Degree of Operating Leverage falls into.


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EC Healthcare Degree of Operating Leverage Calculation

EC Healthcare's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 148.186 (Sep. 2024) / 117.544 (Sep. 2023) - 1 )/( 4152.619 (Sep. 2024) / 4103.503 (Sep. 2023) - 1 )
=0.2607/0.012
=21.78***

* 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.


EC Healthcare  (HKSE:02138) 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.


EC Healthcare Degree of Operating Leverage Related Terms

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


EC Healthcare Business Description

Traded in Other Exchanges
Address
979 King’s Road, 20th Floor, Devon House, Taikoo Place, Quarry Bay, Hong Kong, HKG
EC Healthcare is a Hong Kong-based non-hospital medical service provider. The principal activities of the group include the provision of medical services; aesthetic medical services, comprising medical aesthetics and dental services; beauty and wellness services, comprising traditional beauty, haircare, and ancillary wellness services; and the sale of skincare, healthcare, and beauty products. The group caters to its services through the operating segments of Medical which is the key revenue generator segment and Aesthetic medical, beauty and wellness, and Veterinary and others. Geographically, the group has a business presence in Hong Kong, Macau, and the PRC.
Executives
The Goldman Sachs Group, Inc. 2201 Interest of corporation controlled by you
Tang Chi Fai 2202 Interest of your spouse
Yau Ming Li 2101 Beneficial owner
Union Medical Care Holding Limited 2101 Beneficial owner

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