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Powerwin Tech Group (HKSE:02405) Degree of Operating Leverage : 1.27 (As of Dec. 2024)


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What is Powerwin Tech Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Powerwin Tech Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.27. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Powerwin Tech Group's Degree of Operating Leverage or its related term are showing as below:

HKSE:02405's Degree of Operating Leverage is ranked worse than
51.32% of 984 companies
in the Media - Diversified industry
Industry Median: 1.175 vs HKSE:02405: 1.27

Powerwin Tech Group Degree of Operating Leverage Historical Data

The historical data trend for Powerwin Tech Group'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.

Powerwin Tech Group Degree of Operating Leverage Chart

Powerwin Tech Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.71 0.13 0.22 1.66 1.27

Powerwin Tech Group Semi-Annual Data
Dec19 Dec20 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only 0.22 1.48 1.66 1.65 1.27

Competitive Comparison of Powerwin Tech Group's Degree of Operating Leverage

For the Advertising Agencies subindustry, Powerwin Tech Group'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.


Powerwin Tech Group's Degree of Operating Leverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Powerwin Tech Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Powerwin Tech Group's Degree of Operating Leverage falls into.


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Powerwin Tech Group Degree of Operating Leverage Calculation

Powerwin Tech Group'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
=( 51.188 (Dec. 2024) / 98.435 (Dec. 2023) - 1 )/( 104.607 (Dec. 2024) / 167.942 (Dec. 2023) - 1 )
=-0.48/-0.3771
=1.27***

* 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.


Powerwin Tech Group  (HKSE:02405) 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.


Powerwin Tech Group Degree of Operating Leverage Related Terms

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Powerwin Tech Group Business Description

Traded in Other Exchanges
N/A
Address
Shun Tak Centre, West Tower, Room 3709, Sheung Wan, Hong Kong, HKG
Powerwin Tech Group Ltd is a cross-border digital marketing service provider in China. It covers mainstream media platforms such as Facebook, Instagram, Messenger, Google, Twitter, TikTok, YouTube, Snapchat, and Pinterest, providing customers with diversified and full-link cross-border digital marketing services and online shop SaaS solutions. Geographically, the company generates revenue from Hong Kong and the Chinese mainland, where the majority of revenue is generated from Hong Kong. The company provides Standardized, Customized, and SaaS-based digital marketing services.
Executives
Hsbc International Trustee Limited 2301 Trustee
Li Xiang
Yu Lu
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