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Cosmo Lady (China) Holdings Co (HKSE:02298) Degree of Operating Leverage : 21.92 (As of Dec. 2024)


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What is Cosmo Lady (China) Holdings Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Cosmo Lady (China) Holdings Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 21.92. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Cosmo Lady (China) Holdings Co's Degree of Operating Leverage or its related term are showing as below:

HKSE:02298's Degree of Operating Leverage is ranked worse than
92.8% of 1014 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.05 vs HKSE:02298: 21.92

Cosmo Lady (China) Holdings Co Degree of Operating Leverage Historical Data

The historical data trend for Cosmo Lady (China) Holdings 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.

Cosmo Lady (China) Holdings Co Degree of Operating Leverage Chart

Cosmo Lady (China) Holdings Co 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 4.68 32.80 6.32 -2.25 21.92

Cosmo Lady (China) Holdings Co 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 6.32 5.99 -2.25 50.62 21.92

Competitive Comparison of Cosmo Lady (China) Holdings Co's Degree of Operating Leverage

For the Apparel Manufacturing subindustry, Cosmo Lady (China) Holdings 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.


Cosmo Lady (China) Holdings Co's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Cosmo Lady (China) Holdings Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Cosmo Lady (China) Holdings Co's Degree of Operating Leverage falls into.


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Cosmo Lady (China) Holdings Co Degree of Operating Leverage Calculation

Cosmo Lady (China) Holdings 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
=( 208.752 (Dec. 2024) / 85.529 (Dec. 2023) - 1 )/( 3213.832 (Dec. 2024) / 3015.637 (Dec. 2023) - 1 )
=1.4407/0.0657
=21.92***

* 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.


Cosmo Lady (China) Holdings Co  (HKSE:02298) 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.


Cosmo Lady (China) Holdings Co Degree of Operating Leverage Related Terms

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


Cosmo Lady (China) Holdings Co Business Description

Traded in Other Exchanges
N/A
Address
Fenggang Tianan Digital City, Building N1, Fenggang Town, Guangdong, Dongguan, CHN
Cosmo Lady (China) Holdings Co Ltd is engaged in the design, research, development and sale of its own branded intimate wear products (namely, bras, underpants, sleepwear and loungewear, thermal clothes and others, which include leggings and tights, vests, hosieryand accessories), development of industrial projects and provision of logistic services in the People's Republic of China. Its segments include Intimate wear products segment engaged in designing, marketing and selling of intimate wear products; and Industrial projects and logistic segment engaged in development of industrial projects and provision of logistic services. It derives majority of the revenue from Intimate wear products segment from People's Republic of China.
Executives
Zheng Yaonan 2202 Interest of your spouse
Wu Xiaoli 2101 Beneficial owner
Pandanus Partners L.p. 2201 Interest of corporation controlled by you
Pandanus Associates Inc. 2201 Interest of corporation controlled by you
Fil Limited 2201 Interest of corporation controlled by you
Fidelity China Special Situations Plc 2101 Beneficial owner
Tmf (cayman) Ltd. 2301 Trustee
Cai Shaoru 2202 Interest of your spouse
Forever Flourish International Holdings Limited 2101 Beneficial owner
Zhang Shengfeng 2201 Interest of corporation controlled by you
Lin Zonghong 2101 Beneficial owner
Cai Jingqin 2202 Interest of your spouse
Hong Ye Asset Holdings Limited 2201 Interest of corporation controlled by you
Great Brilliant Investment Holdings Limited 2201 Interest of corporation controlled by you
Forever Shine Holdings Limited 2101 Beneficial owner

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