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Canggang Railway (HKSE:02169) Degree of Operating Leverage : 0.19 (As of Dec. 2024)


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What is Canggang Railway Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Canggang Railway's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 0.19. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:02169's Degree of Operating Leverage is ranked better than
60.53% of 978 companies
in the Transportation industry
Industry Median: 0.88 vs HKSE:02169: 0.19

Canggang Railway Degree of Operating Leverage Historical Data

The historical data trend for Canggang Railway'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.

Canggang Railway Degree of Operating Leverage Chart

Canggang Railway Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 1.72 8.24 1.21 -2.82 0.19

Canggang Railway Semi-Annual Data
Dec17 Dec18 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 1.21 7.79 -2.82 1.09 0.19

Competitive Comparison of Canggang Railway's Degree of Operating Leverage

For the Railroads subindustry, Canggang Railway'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.


Canggang Railway's Degree of Operating Leverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Canggang Railway's Degree of Operating Leverage distribution charts can be found below:

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


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Canggang Railway Degree of Operating Leverage Calculation

Canggang Railway'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
=( 113.441 (Dec. 2024) / 119.819 (Dec. 2023) - 1 )/( 276.457 (Dec. 2024) / 381.781 (Dec. 2023) - 1 )
=-0.0532/-0.2759
=0.19***

* 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.


Canggang Railway  (HKSE:02169) 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.


Canggang Railway Degree of Operating Leverage Related Terms

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


Canggang Railway Business Description

Traded in Other Exchanges
N/A
Address
Yangzhuang Station, Yangerzhuang Town, Huanghua, Hebei Province, Cangzhou, CHN
Canggang Railway Ltd is a local railway operator based in Hebei Province. The company operates in two segments, rail freight transportation services, and other ancillary services, including loading and unloading, road freight transportation, construction, repair and maintenance of Special Service Lines, railway roadbed and other railway facility construction, and certain other businesses. It operates one railway, the Canggang Railway Line, which connects the Shuo-Huang Railway Line and the Han-Huang Railway Line with the Bohai New Area in Cangzhou. Its railway line also connects the Beijing-Shanghai Railway Line. The company earns its revenue from rail freight transportation services.
Executives
Liu Yongliang 2201 Interest of corporation controlled by you
Jinghai Group Investment Limited 2101 Beneficial owner
Guo Shou An Bao Ji Jin Guan Li You Xian Gong Si 2501 Other
Zhong Guo Ren Shou Zi Chan Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Zhong Guo Ren Shou Bao Xian Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Zhong Guo Ren Shou Bao Xian Ji Tuan Gong Si 2201 Interest of corporation controlled by you
Guo Shou An Bao Hai Wai Hao Dan Yi Zi Chan Guan Li Ji Hua 2501 Other
Zhang Lijie 2201 Interest of corporation controlled by you
Zhang Ning 2201 Interest of corporation controlled by you
Zhang Ruiqiu 2201 Interest of corporation controlled by you
Zhang Weiwei 2202 Interest of your spouse
Zhang Xiaogeng 2201 Interest of corporation controlled by you
Zhang Xiaosuo 2201 Interest of corporation controlled by you
Zhang Xiaoxia 2202 Interest of your spouse
Zhang Yanfeng 2201 Interest of corporation controlled by you

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