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KRP Development Holdings (HKSE:02421) Degree of Operating Leverage : 1.73 (As of Sep. 2024)


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What is KRP Development Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. KRP Development Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 was 1.73. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for KRP Development Holdings's Degree of Operating Leverage or its related term are showing as below:

HKSE:02421's Degree of Operating Leverage is ranked worse than
64.24% of 1703 companies
in the Real Estate industry
Industry Median: 0.92 vs HKSE:02421: 1.73

KRP Development Holdings Degree of Operating Leverage Historical Data

The historical data trend for KRP Development 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.

KRP Development Holdings Degree of Operating Leverage Chart

KRP Development Holdings Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24
Degree of Operating Leverage
- 0.91 - 1.52 1.19

KRP Development Holdings Semi-Annual Data
Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only 0.95 1.52 1.14 1.19 1.73

Competitive Comparison of KRP Development Holdings's Degree of Operating Leverage

For the Real Estate - Development subindustry, KRP Development 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.


KRP Development Holdings's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, KRP Development Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where KRP Development Holdings's Degree of Operating Leverage falls into.


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KRP Development Holdings Degree of Operating Leverage Calculation

KRP Development Holdings's Degree of Operating Leverage for the quarter that ended in Sep. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 85.647 (Sep. 2024) / 193.765 (Sep. 2023) - 1 )/( 250.199 (Sep. 2024) / 369.052 (Sep. 2023) - 1 )
=-0.558/-0.322
=1.73***

* 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.


KRP Development Holdings  (HKSE:02421) 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.


KRP Development Holdings Degree of Operating Leverage Related Terms

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KRP Development Holdings Business Description

Traded in Other Exchanges
N/A
Address
611–619 Castle Peak Road, Block C, 9th Floor, Southeast Industrial Building, Tsuen Wan, New Territories, Hong Kong, HKG
KRP Development Holdings Ltd is a boutique residential property developer, It is principally engaged in development and sales of residential properties in the fast-developing residential markets in Dongguan, Huizhou and Foshan. It has developed two product series for homebuyers, namely, Villas series, targeting middle income and move-up homebuyers, and Mansion, targeting first-time homebuyers and retirees.
Executives
Tmf (b.v.i.) Ltd. 2201 Interest of corporation controlled by you
New Sense Enterprises Limited 2101 Beneficial owner
Castfast Properties Development Co., Limited 2101 Beneficial owner
Honford Investments Limited 2201 Interest of corporation controlled by you
The Wedding City Co. Limited 2101 Beneficial owner
Ho Cheuk Fai 2201 Interest of corporation controlled by you
Ho Po Chu 2201 Interest of corporation controlled by you
Ho Cheuk Ming 2201 Interest of corporation controlled by you

KRP Development Holdings Headlines

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