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Readboy Education Holding Co (HKSE:02385) Degree of Operating Leverage : -0.07 (As of Dec. 2024)


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What is Readboy Education Holding Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Readboy Education Holding Co's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -0.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Readboy Education Holding Co's Degree of Operating Leverage or its related term are showing as below:

HKSE:02385's Degree of Operating Leverage is ranked better than
64.23% of 246 companies
in the Education industry
Industry Median: 0.86 vs HKSE:02385: -0.07

Readboy Education Holding Co Degree of Operating Leverage Historical Data

The historical data trend for Readboy Education Holding 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.

Readboy Education Holding Co Degree of Operating Leverage Chart

Readboy Education Holding Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 2.54 -1.92 2.69 15.35 -0.07

Readboy Education Holding 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 2.69 189.74 15.35 19.56 -0.07

Competitive Comparison of Readboy Education Holding Co's Degree of Operating Leverage

For the Education & Training Services subindustry, Readboy Education Holding 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.


Readboy Education Holding Co's Degree of Operating Leverage Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Readboy Education Holding Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Readboy Education Holding Co's Degree of Operating Leverage falls into.


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Readboy Education Holding Co Degree of Operating Leverage Calculation

Readboy Education Holding 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
=( -64.604 (Dec. 2024) / -65.762 (Dec. 2023) - 1 )/( 492.624 (Dec. 2024) / 393.074 (Dec. 2023) - 1 )
=-0.0176/0.2533
=-0.07***

* 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.


Readboy Education Holding Co  (HKSE:02385) 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.


Readboy Education Holding Co Degree of Operating Leverage Related Terms

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Readboy Education Holding Co Business Description

Traded in Other Exchanges
N/A
Address
No. 38, Changyi Road, Wuguishan, Guangdong Province, Zhongshan, CHN
Readboy Education Holding Co Ltd is an investment holding company engaged in the production and sale of personal student tablets, smart classroom solutions, wearable products, other products, and advertisement and content licensing in the People's Republic of China. The company has five operating segments; Production and sale of personal student tablets, Production and sale of smart classroom solutions, Production and sale of wearable products, Production and sale of other products, and Advertisement and content licensing. It derives a majority of its revenue from the production and sale of personal student tablets in the People's Republic of China.
Executives
Alpine Sky Limited 2101 Beneficial owner
Equiom Fiduciary Services (hong Kong) Limited 2301 Trustee
Liu Zhilan 2101 Beneficial owner
Kimlan Limited 2103 Interests held jointly with another person
Maples Trustee Services (cayman) Limited 2103 Interests held jointly with another person
Qin Shuguang 2201 Interest of corporation controlled by you
Sky Focus Holdings Limited 2103 Interests held jointly with another person
Trade Honour Holdings Limited 2101 Beneficial owner
Chen Zhiyong 2103 Interests held jointly with another person

Readboy Education Holding Co Headlines

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