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Tat Hong Equipment Service Co (HKSE:02153) Degree of Operating Leverage : 20.96 (As of Mar. 2025)


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What is Tat Hong Equipment Service Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Tat Hong Equipment Service Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 20.96. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Tat Hong Equipment Service Co's Degree of Operating Leverage or its related term are showing as below:

HKSE:02153's Degree of Operating Leverage is ranked worse than
93.2% of 206 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 1.45 vs HKSE:02153: 20.96

Tat Hong Equipment Service Co Degree of Operating Leverage Historical Data

The historical data trend for Tat Hong Equipment Service Co'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.

Tat Hong Equipment Service Co Degree of Operating Leverage Chart

Tat Hong Equipment Service Co Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial - -3.71 5.02 38.49 -

Tat Hong Equipment Service Co Semi-Annual Data
Mar18 Mar19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25
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 5.02 20.53 38.49 20.96 -

Competitive Comparison of Tat Hong Equipment Service Co's Degree of Operating Leverage

For the Farm & Heavy Construction Machinery subindustry, Tat Hong Equipment Service Co'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.


Tat Hong Equipment Service Co's Degree of Operating Leverage Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Tat Hong Equipment Service Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Tat Hong Equipment Service Co's Degree of Operating Leverage falls into.


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Tat Hong Equipment Service Co Degree of Operating Leverage Calculation

Tat Hong Equipment Service Co's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -49.592 (Mar. 2025) / -46.639 (Mar. 2024) - 1 )/( 690.214 (Mar. 2025) / 736.299 (Mar. 2024) - 1 )
=0.0633/-0.0626
=-1.01***

* 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.


Tat Hong Equipment Service Co  (HKSE:02153) 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.


Tat Hong Equipment Service Co Degree of Operating Leverage Related Terms

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Tat Hong Equipment Service Co Business Description

Traded in Other Exchanges
N/A
Address
No. 2377, Shenkun Road, Room 601, Building 8, PortMix, Minhang District, Shanghai, CHN, 201106
Tat Hong Equipment Service Co Ltd is involved in providing tower crane services. The company offers a range of tower crane solutions, including consultation, technical design, commissioning, construction, and after-sales services. The operating segments generate revenue mainly from tower crane services.
Executives
Ng San Tiong 2301 Trustee
Chwee Cheng & Sons Pte Ltd 2201 Interest of corporation controlled by you
Ng San Wee 2301 Trustee
Ng Sun Ho 2301 Trustee
Tat Hong Equipment (china) Pte. Ltd. 2101 Beneficial owner
Tat Hong Holdings Ltd 2201 Interest of corporation controlled by you
Tat Hong International Pte Ltd 2201 Interest of corporation controlled by you
Th60 Investments Pte. Ltd. 2201 Interest of corporation controlled by you
Thsc Investments Pte. Ltd. 2201 Interest of corporation controlled by you
Ng Sun Giam 2301 Trustee
Ng Sun Giam Roger 2301 Trustee
Zoomlion H.k. Holding Co., Limited 2201 Interest of corporation controlled by you
Zoomlion Heavy Industry Science And Technology Co.,limited 2201 Interest of corporation controlled by you
Zoomlion International Trading (h.k.) Co.,limited 2101 Beneficial owner
Lim Hua Min 2201 Interest of corporation controlled by you

Tat Hong Equipment Service Co Headlines

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