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LX Technology Group (HKSE:02436) Degree of Operating Leverage : -2.81 (As of Dec. 2024)


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What is LX Technology Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. LX Technology Group's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was -2.81. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:02436's Degree of Operating Leverage is ranked better than
76.79% of 2413 companies
in the Hardware industry
Industry Median: 1 vs HKSE:02436: -2.81

LX Technology Group Degree of Operating Leverage Historical Data

The historical data trend for LX Technology 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.

LX Technology Group Degree of Operating Leverage Chart

LX Technology Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 1.71 4.99 -9.29 -29.14 -2.81

LX Technology Group 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 -9.29 19.23 -29.14 -12.02 -2.81

Competitive Comparison of LX Technology Group's Degree of Operating Leverage

For the Computer Hardware subindustry, LX Technology 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.


LX Technology Group's Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, LX Technology Group's Degree of Operating Leverage distribution charts can be found below:

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


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LX Technology Group Degree of Operating Leverage Calculation

LX Technology 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
=( -17.249 (Dec. 2024) / -94.845 (Dec. 2023) - 1 )/( 2532.218 (Dec. 2024) / 1961.247 (Dec. 2023) - 1 )
=-0.8181/0.2911
=-2.81***

* 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.


LX Technology Group  (HKSE:02436) 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.


LX Technology Group Degree of Operating Leverage Related Terms

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LX Technology Group Business Description

Traded in Other Exchanges
N/A
Address
10 Kaifeng Road, Meilin Street, 501, 5th Floor Cuilin Building, Maling District, Futian District, Shenzhen, CHN
LX Technology Group Ltd is a device as a service provider in China. It is principally engaged in the sales of refurbished de-commissioned IT devices to, among others, resellers of IT devices, and the provision of the device and IT technical subscription services to SMEs in China. The service line of the company are the Device recycling business, Device subscription services and IT technical subscription services. from which the company earns maximum revenue from the Device recycling business.
Executives
Hu Zuoxiong 2201 Interest of corporation controlled by you
Teeroy Limited 2301 Trustee
Hua Baocheng 2101 Beneficial owner
Beauty Bear Technology Limited 2101 Beneficial owner
Tricor Trust (hong Kong) Limited 2301 Trustee
Chen Wei 2201 Interest of corporation controlled by you
Zhong Xiao Qi Ye Fa Zhan Ji Jin Shen Zhen Nan Shan You Xian He Huo 2201 Interest of corporation controlled by you
Shen Zhen Shi Fu Hai Zhong Xiao Qi Ye Fa Zhan Ji Jin Gu Quan Tou Zi Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Shang Hai Yu Jun Qi Ye Guan Li He Huo Qi Ye You Xian He Huo 2101 Beneficial owner
Shang Hai Tong Yun Xin Xi Ji Shu He Huo Qi Ye You Xian He Huo 2201 Interest of corporation controlled by you
Shen Zhen Shi Da Chen Cai Zhi Chuang Ye Tou Zi Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Hu Nan Dian Guang Chuan Mei Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Shen Zhen Shi Dong Fang Fu Hai Tou Zi Guan Li Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Ubs Trustees (b.v.i.) Limited 2301 Trustee
Lx Brothers Technology Limited 2101 Beneficial owner

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