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Zhongshen Jianye Holding (HKSE:02503) Degree of Operating Leverage : 1.80 (As of Dec. 2024)


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What is Zhongshen Jianye Holding Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Zhongshen Jianye Holding's Degree of Operating Leverage for the quarter that ended in Dec. 2024 was 1.80. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

HKSE:02503's Degree of Operating Leverage is ranked worse than
61.73% of 1667 companies
in the Construction industry
Industry Median: 0.99 vs HKSE:02503: 1.80

Zhongshen Jianye Holding Degree of Operating Leverage Historical Data

The historical data trend for Zhongshen Jianye Holding'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.

Zhongshen Jianye Holding Degree of Operating Leverage Chart

Zhongshen Jianye Holding Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- 24.31 1.48 2.63 1.80

Zhongshen Jianye Holding Semi-Annual Data
Dec20 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Degree of Operating Leverage Get a 7-Day Free Trial 1.48 -4.75 2.63 5.37 1.80

Competitive Comparison of Zhongshen Jianye Holding's Degree of Operating Leverage

For the Engineering & Construction subindustry, Zhongshen Jianye Holding'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.


Zhongshen Jianye Holding's Degree of Operating Leverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Zhongshen Jianye Holding's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Zhongshen Jianye Holding's Degree of Operating Leverage falls into.


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Zhongshen Jianye Holding Degree of Operating Leverage Calculation

Zhongshen Jianye Holding'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
=( 3.24 (Dec. 2024) / 53.281 (Dec. 2023) - 1 )/( 801.348 (Dec. 2024) / 1674.487 (Dec. 2023) - 1 )
=-0.9392/-0.5214
=1.80***

* 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.


Zhongshen Jianye Holding  (HKSE:02503) 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.


Zhongshen Jianye Holding Degree of Operating Leverage Related Terms

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Zhongshen Jianye Holding Business Description

Traded in Other Exchanges
N/A
Address
Guangming Street, 8th Floor, Block B, Building 4, Huaqiang Creative Industrial Park, Guangming District, Shenzhen, CHN
Zhongshen Jianye Holding Ltd is an investment holding company. Along with its subsidiaries, it is principally engaged in the provision of construction services in the People's Republic of China. The various services offered by the group include building construction, general contracting, building electrical and mechanical installation and engineering, foundation construction, building renovation and decoration, and specialized construction services, among others.
Executives
Sang Xianfeng 2201 Interest of corporation controlled by you
Zhong Shen Heng Tai Zi Ben You Xian Gong Si 2101 Beneficial owner
Jin Wei 2202 Interest of your spouse
Xian Yurong 2201 Interest of corporation controlled by you
Zhong Shen Chi Tai Zi Ben You Xian Gong Si 2101 Beneficial owner
Hou Ling 2201 Interest of corporation controlled by you
Wang Jing 2202 Interest of your spouse
Xin Yao Tou Zi You Xian Gong Si 2101 Beneficial owner

Zhongshen Jianye Holding Headlines

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