GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Lepu Biopharma Co Ltd (HKSE:02157) » Definitions » Degree of Operating Leverage

Lepu Biopharma Co (HKSE:02157) Degree of Operating Leverage : 40.72 (As of Dec. 2024)


View and export this data going back to 2022. Start your Free Trial

What is Lepu Biopharma Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lepu Biopharma Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 40.72. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Lepu Biopharma Co's Degree of Operating Leverage or its related term are showing as below:

HKSE:02157's Degree of Operating Leverage is ranked worse than
97.85% of 885 companies
in the Biotechnology industry
Industry Median: -0.02 vs HKSE:02157: 40.72

Lepu Biopharma Co Degree of Operating Leverage Historical Data

The historical data trend for Lepu Biopharma 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.

Lepu Biopharma Co Degree of Operating Leverage Chart

Lepu Biopharma Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial - - - -0.07 40.72

Lepu Biopharma Co Semi-Annual Data
Dec19 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 - - -0.07 -4.36 40.72

Competitive Comparison of Lepu Biopharma Co's Degree of Operating Leverage

For the Biotechnology subindustry, Lepu Biopharma 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.


Lepu Biopharma Co's Degree of Operating Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Lepu Biopharma Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Lepu Biopharma Co's Degree of Operating Leverage falls into.


;
;

Lepu Biopharma Co Degree of Operating Leverage Calculation

Lepu Biopharma Co'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
=( -429.784 (Dec. 2024) / -17.089 (Dec. 2023) - 1 )/( 392.683 (Dec. 2024) / 246.485 (Dec. 2023) - 1 )
=24.1497/0.5931
=40.72***

* 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.


Lepu Biopharma Co  (HKSE:02157) 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.


Lepu Biopharma Co Degree of Operating Leverage Related Terms

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


Lepu Biopharma Co Business Description

Traded in Other Exchanges
N/A
Address
No. 651, Lianheng Road, Minhang District, Shanghai, CHN, 201112
Lepu Biopharma Co Ltd is a biopharmaceutical company focusing on oncology therapeutics and has one operating segment. The Group is principally engaged in the sales of pharmaceutical products and the research and development of new drugs. The majority operating entity of the Group is domiciled in Mainland China. The company has established an integrated end-to-end platform across drug discovery, clinical development, CMC, and GMP-compliant manufacturing, encompassing all critical functions of the biopharmaceutical value chain. The company generates the majority of its revenue from the Sale of pharmaceutical products. The company also generates a small portion of its revenue from Licensing income.
Executives
Hu Chaohong 2201 Interest of corporation controlled by you
Miracogen Inc. 2201 Interest of corporation controlled by you
Miracogen Limited 2101 Beneficial owner
Pu Zhongjie 2201 Interest of corporation controlled by you
Pu Jue 2201 Interest of corporation controlled by you
Hao Chunmei 2202 Interest of your spouse
Su Rongyu 2101 Beneficial owner
Cereblue Limited 2201 Interest of corporation controlled by you
Bei Jing Hou De Yi Min Tou Zi Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Ning Bo Hou De Yi Min Xin Xi Ke Ji You Xian Gong Si 2101 Beneficial owner
Le Pu Bei Jing Yi Liao Qi Xie Gu Fen You Xian Gong Si 2101 Beneficial owner
Lv Yuan Shang Hai Ke Ji You Xian Gong Si 2101 Beneficial owner

Lepu Biopharma Co Headlines

No Headlines