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NVC International Holdings (HKSE:02222) Degree of Operating Leverage : 631.98 (As of Dec. 2024)


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What is NVC International Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. NVC International Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 631.98. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for NVC International Holdings's Degree of Operating Leverage or its related term are showing as below:

HKSE:02222's Degree of Operating Leverage is ranked worse than
99.29% of 423 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 1.2 vs HKSE:02222: 631.98

NVC International Holdings Degree of Operating Leverage Historical Data

The historical data trend for NVC International Holdings'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.

NVC International Holdings Degree of Operating Leverage Chart

NVC International Holdings 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 112.60 -410.22 4.33 288.13 631.98

NVC International Holdings 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 4.33 1.94 288.13 7,995.77 631.98

Competitive Comparison of NVC International Holdings's Degree of Operating Leverage

For the Furnishings, Fixtures & Appliances subindustry, NVC International Holdings'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.


NVC International Holdings's Degree of Operating Leverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, NVC International Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where NVC International Holdings's Degree of Operating Leverage falls into.


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NVC International Holdings Degree of Operating Leverage Calculation

NVC International Holdings'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
=( -90.156 (Dec. 2024) / 322.631 (Dec. 2023) - 1 )/( 1839.21 (Dec. 2024) / 1842.941 (Dec. 2023) - 1 )
=-1.2794/-0.002
=631.98***

* 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.


NVC International Holdings  (HKSE:02222) 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.


NVC International Holdings Degree of Operating Leverage Related Terms

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


NVC International Holdings Business Description

Traded in Other Exchanges
N/A
Address
Phase 3, Hong Kong Science Park, Unit 705, 7th Floor, Building 20E, Pak Shek Kok, Hong Kong, HKG
NVC International Holdings Ltd is engaged in the lighting industry. Its segment includes NVC brand lighting products - international market, Non-NVC brand lighting products - domestic market, and Non-NVC brand lighting products - international market. Its brands are NVC Lighting, ETI Solid State Lighting INC, Dernier & Hamlyn, DH Lifelabs, and NVC Electric. The majority of the revenue of the company is generated from the United States.
Executives
Canopy Capital Limited 2101 Beneficial owner
Harker Hall Capital Ltd. 2201 Interest of corporation controlled by you
Leap Gain Limited 2201 Interest of corporation controlled by you
Oneworld Legend Limited (bvi)
Harbour Faith Enterprises Limited 2101 Beneficial owner
Chan Sin Wa Carrie 2201 Interest of corporation controlled by you
Gold Interact Investment Limited 2106 Person having a security interest in shares
Su Lixin 2101 Beneficial owner
Ye Yong
Oneworld Legend Limited 2201 Interest of corporation controlled by you
Wang Keven Dun 2201 Interest of corporation controlled by you
Elec-tech International (hk) Co Ltd 2101 Beneficial owner
An Hui De Hao Run Da Dian Qi Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Su Lixin 2101 Beneficial owner
Zhao Yu

NVC International Holdings Headlines

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