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Lygend Resources & Technology Co (HKSE:02245) Degree of Operating Leverage : 2.53 (As of Dec. 2024)


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What is Lygend Resources & Technology Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Lygend Resources & Technology Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 2.53. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Lygend Resources & Technology Co's Degree of Operating Leverage or its related term are showing as below:

HKSE:02245's Degree of Operating Leverage is ranked worse than
67.3% of 734 companies
in the Metals & Mining industry
Industry Median: 0.975 vs HKSE:02245: 2.53

Lygend Resources & Technology Co Degree of Operating Leverage Historical Data

The historical data trend for Lygend Resources & Technology 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.

Lygend Resources & Technology Co Degree of Operating Leverage Chart

Lygend Resources & Technology Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.61 1.69 3.14 -2.71 2.53

Lygend Resources & Technology 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 3.14 4.96 -2.71 1.73 2.53

Competitive Comparison of Lygend Resources & Technology Co's Degree of Operating Leverage

For the Other Industrial Metals & Mining subindustry, Lygend Resources & Technology 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.


Lygend Resources & Technology Co's Degree of Operating Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Lygend Resources & Technology Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Lygend Resources & Technology Co's Degree of Operating Leverage falls into.


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Lygend Resources & Technology Co Degree of Operating Leverage Calculation

Lygend Resources & Technology 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
=( 4766.717 (Dec. 2024) / 2511.718 (Dec. 2023) - 1 )/( 31211.213 (Dec. 2024) / 23034.235 (Dec. 2023) - 1 )
=0.8978/0.355
=2.53***

* 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.


Lygend Resources & Technology Co  (HKSE:02245) 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.


Lygend Resources & Technology Co Degree of Operating Leverage Related Terms

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


Lygend Resources & Technology Co Business Description

Traded in Other Exchanges
N/A
Address
Lane 299 Guanghua Road, 10th-11th Floor, Building C10, R&D Park, Yinzhou District, Zhejiang Province, Ningbo, CHN, 315000
Lygend Resources & Technology Co Ltd is engaged in both trading and producing nickel products. The company has a comprehensive product and service portfolio covering multiple areas across the nickel industry value chain, from upstream sourcing of nickel resources, trading and production of nickel products, to equipment manufacturing and sale. Its products are widely used in various downstream sectors, including the NEV and stainless steel industries. Geographically, the company generates a majority of its revenue from Mainland China and the rest from other regions.
Executives
Xie Wen 2101 Beneficial owner
Zhong Guo Cheng Tong Kong Gu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Zhong Guo Guo You Qi Ye Hun He Suo You Zhi Gai Ge Ji Jin You Xian Gong Si 2101 Beneficial owner
Xiang Gang Bang Pu Shi Dai Xin Neng Yuan You Xian Gong Si
Guang Dong Bang Pu Xun Huan Ke Ji You Xian Gong Si
Ning Bo Bang Pu Shi Dai Xin Neng Yuan You Xian Gong Si
Oakswood Group Ltd 2201 Interest of corporation controlled by you
Lim Shu Hua, Cheryl 2307 Founder of a discretionary trust who can infl
Feng Yi Pte. Ltd. 2101 Beneficial owner
Dbs Trustee Limited 2301 Trustee
Gong Yin Rui Xin Ji Jin Guan Li You Xian Gong Si 2102 Investment manager
China International Capital Corporation Limited 2201 Interest of corporation controlled by you
Ge Lin Mei Gu Fen You Xian Gong Si
Gong Yin Rui Xin Ji Jin Guan Li You Xian Gong Si Dai Gong Yin Rui Xin Tai Hong Hao Dan Yi Zi Chan Gu
Hu Bei Rong Bai Dian Chi San Jiao Yi Hao Gu Quan Tou Zi Ji Jin He Huo Qi Ye You Xian He Huo

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