GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » JBM (Healthcare) Ltd (HKSE:02161) » Definitions » Degree of Operating Leverage

JBM (Healthcare) (HKSE:02161) Degree of Operating Leverage : 2.88 (As of Mar. 2025)


View and export this data going back to 2021. Start your Free Trial

What is JBM (Healthcare) Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. JBM (Healthcare)'s Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.88. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:02161's Degree of Operating Leverage is ranked worse than
72.72% of 953 companies
in the Drug Manufacturers industry
Industry Median: 0.67 vs HKSE:02161: 2.88

JBM (Healthcare) Degree of Operating Leverage Historical Data

The historical data trend for JBM (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.

JBM (Healthcare) Degree of Operating Leverage Chart

JBM (Healthcare) Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial - -10.75 4.59 4.21 -

JBM (Healthcare) 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 4.59 4.42 4.21 2.88 -

Competitive Comparison of JBM (Healthcare)'s Degree of Operating Leverage

For the Drug Manufacturers - Specialty & Generic subindustry, JBM (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.


JBM (Healthcare)'s Degree of Operating Leverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, JBM (Healthcare)'s Degree of Operating Leverage distribution charts can be found below:

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


;
;

JBM (Healthcare) Degree of Operating Leverage Calculation

JBM (Healthcare)'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
=( 246.13 (Mar. 2025) / 173.388 (Mar. 2024) - 1 )/( 782.292 (Mar. 2025) / 648.415 (Mar. 2024) - 1 )
=0.4195/0.2065
=2.03***

* 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.


JBM (Healthcare)  (HKSE:02161) 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.


JBM (Healthcare) Degree of Operating Leverage Related Terms

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


JBM (Healthcare) Business Description

Traded in Other Exchanges
N/A
Address
108 Wai Yip Street, Units 808-811, 8 floor, C-Bons International Centre, Kwun Tong, Kowloon, Hong Kong, HKG
JBM (Healthcare) Ltd markets and distributes healthcare products. The company's operating segment includes Branded medicines; Proprietary Chinese medicines and Health and wellness products. It generates maximum revenue from the Proprietary Chinese medicines segment. The Proprietary Chinese medicines segment develops, manufactures, and distributes registered Chinese medicines composed solely of any Chinese herbal medicines specified in the Chinese Medicine Ordinance, or any materials of herbal, animal, or mineral origin customarily or widely used by the Chinese. Geographically, it derives a majority of its revenue from Hong Kong.
Executives
Sum Kwong Yip, Derek
Queenshill Development Limited
Ubs Trustees (b.v.i.) Limited
Kingshill Development Group Inc
Lincoln's Hill Development Limited
Yun Nan Bai Yao Ji Tuan Gu Fen You Xian Gong Si
New Heritage Healthcare Limited 2101 Beneficial owner
Gavett Limited 2201 Interest of corporation controlled by you
United Islands Group Limited 2201 Interest of corporation controlled by you
Fortstar Limited 2201 Interest of corporation controlled by you
Tao Richard 2201 Interest of corporation controlled by you
Hon Hing Tong Patricia 2202 Interest of your spouse
Tao Paul 2201 Interest of corporation controlled by you
Choi Siu Ping 2202 Interest of your spouse
Longjin Investments Limited 2101 Beneficial owner

JBM (Healthcare) Headlines

No Headlines