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Petro-king Oilfield Services (HKSE:02178) Degree of Operating Leverage : 13.94 (As of Dec. 2024)


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What is Petro-king Oilfield Services Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Petro-king Oilfield Services's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 13.94. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Petro-king Oilfield Services's Degree of Operating Leverage or its related term are showing as below:

HKSE:02178's Degree of Operating Leverage is ranked worse than
89.72% of 905 companies
in the Oil & Gas industry
Industry Median: 0.95 vs HKSE:02178: 13.94

Petro-king Oilfield Services Degree of Operating Leverage Historical Data

The historical data trend for Petro-king Oilfield Services'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.

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Petro-king Oilfield Services Degree of Operating Leverage Chart

Petro-king Oilfield Services Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.90 84.88 -0.86 747.06 13.94

Petro-king Oilfield Services Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.86 -0.90 747.06 -121.98 13.94

Competitive Comparison of Petro-king Oilfield Services's Degree of Operating Leverage

For the Oil & Gas Equipment & Services subindustry, Petro-king Oilfield Services'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.


Petro-king Oilfield Services's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Petro-king Oilfield Services's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Petro-king Oilfield Services's Degree of Operating Leverage falls into.


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Petro-king Oilfield Services Degree of Operating Leverage Calculation

Petro-king Oilfield Services'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
=( -0.455 (Dec. 2024) / -56.404 (Dec. 2023) - 1 )/( 292.444 (Dec. 2024) / 314.84 (Dec. 2023) - 1 )
=-0.9919/-0.0711
=13.94***

* 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.


Petro-king Oilfield Services  (HKSE:02178) 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.


Petro-king Oilfield Services Degree of Operating Leverage Related Terms

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Petro-king Oilfield Services Business Description

Traded in Other Exchanges
N/A
Address
No. 3 Haide Road, Tiley Central Plaza, Room 705-710, 7th Floor, Tower A, Nanshan District, Guangdong, Shenzhen, CHN, 518054
Petro-king Oilfield Services Ltd provides oilfield and gas field technology services covering various stages in the life cycle of oilfields and gas fields including production enhancement, drilling, consultancy and integrated project management with auxiliary activities in the trading of oilfield and gas field related products. It has two reportable segments namely Oilfield project tools and services; and Consultancy services. Oilfield project tools and services include drilling work, production enhancement work, and well-completion work. It generates majority of its revenue from the Oilfield project tools and services segment. Geographically, the company operates in the People's Republic of China (PRC), the Middle East, and other countries, and generates majority of its revenue from PRC.
Executives
Hsbc International Trustee Limited 2301 Trustee
Lee & Leung (b.v.i.) Limited 2201 Interest of corporation controlled by you
King Shine Group Limited 2101 Beneficial owner
Lee Lap 2307 Founder of a discretionary trust who can infl
Wang Jinlong 2201 Interest of corporation controlled by you
Zhou Xiaojun 2202 Interest of your spouse
Ubs Group Ag 2201 Interest of corporation controlled by you
Greenwoods Asset Management Hong Kong Limited 2102 Investment manager
Invest Partner Group Limited 2201 Interest of corporation controlled by you
Termbray Industries International (holdings) Limited 2201 Interest of corporation controlled by you
Aeasy Credit Investment Limited 2201 Interest of corporation controlled by you
Zero Finance Hong Kong Limited 2106 Person having a security interest in shares

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