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Xuan Wu Cloud Technology Holdings (HKSE:02392) Degree of Operating Leverage : 8.57 (As of Dec. 2024)


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What is Xuan Wu Cloud Technology Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Xuan Wu Cloud Technology Holdings's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 8.57. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Xuan Wu Cloud Technology Holdings's Degree of Operating Leverage or its related term are showing as below:

HKSE:02392's Degree of Operating Leverage is ranked worse than
85.34% of 2660 companies
in the Software industry
Industry Median: 0.78 vs HKSE:02392: 8.57

Xuan Wu Cloud Technology Holdings Degree of Operating Leverage Historical Data

The historical data trend for Xuan Wu Cloud Technology 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.

Xuan Wu Cloud Technology Holdings Degree of Operating Leverage Chart

Xuan Wu Cloud Technology Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 3.92 -1.71 72.48 5.11 8.57

Xuan Wu Cloud Technology Holdings Semi-Annual Data
Dec18 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 Premium Member Only 72.48 -359.44 5.11 0.38 8.57

Competitive Comparison of Xuan Wu Cloud Technology Holdings's Degree of Operating Leverage

For the Software - Application subindustry, Xuan Wu Cloud Technology 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.


Xuan Wu Cloud Technology Holdings's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Xuan Wu Cloud Technology Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Xuan Wu Cloud Technology Holdings's Degree of Operating Leverage falls into.


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Xuan Wu Cloud Technology Holdings Degree of Operating Leverage Calculation

Xuan Wu Cloud Technology 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
=( 3.892 (Dec. 2024) / -73.235 (Dec. 2023) - 1 )/( 1229.186 (Dec. 2024) / 1401.433 (Dec. 2023) - 1 )
=-1.0531/-0.1229
=8.57***

* 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.


Xuan Wu Cloud Technology Holdings  (HKSE:02392) 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.


Xuan Wu Cloud Technology Holdings Degree of Operating Leverage Related Terms

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Xuan Wu Cloud Technology Holdings Business Description

Traded in Other Exchanges
N/A
Address
38 Haizhou Road, Room 904, 9th Floor, Dongsheng Yunding Building, Haizhu District, Guangdong Province, Guangzhou, CHN
Xuan Wu Cloud Technology Holdings Ltd is an intelligent CRM services provider, providing CRM PaaS services and CRM SaaS services to clients. its CRM PaaS services mainly provide cPaaS to encapsulate messaging communication capabilities of the three telecommunication network operators for the customers to be integrated into the customer's business systems, thereby enabling the customers to access and utilize the communication capabilities as a service, and CRM SaaS services comprise of marketing cloud, sales cloud, and service cloud, which enable the Group to provide the customer with one-stop intelligent CRM services throughout their entire business cycle, from initial marketing to after-sales services. The company generates the majority of its revenue from the CRM SaaS services.
Executives
Song Xiaohu 2201 Interest of corporation controlled by you
Bao Ya Ji Tuan Kong Gu You Xian Gong Si 2101 Beneficial owner
Li Hairong 2201 Interest of corporation controlled by you
Song Xiaohu 2201 Interest of corporation controlled by you
Chen Yonghui 2201 Interest of corporation controlled by you
Zheng Hao Huan Qiu Kong Gu You Xian Gong Si 2101 Beneficial owner
Shanghai Fosun Industrial Investment Co., Ltd.
Guang Zhou Xuan Dong Tou Zi You Xian He Huo Qi Ye You Xian He Huo 2101 Beneficial owner
Shang Ying Huan Qiu You Xian Gong Si 2101 Beneficial owner
Hong Han Huan Qiu You Xian Gong Si 2101 Beneficial owner
Huang Fangjie 2201 Interest of corporation controlled by you
Ge Ping 2501 Other
Shanghai Fosun Weishi Investment Management Co., Ltd.
Xie Lejun 2201 Interest of corporation controlled by you
Shanghai Fosun High Technology (group) Co., Ltd.

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